What is buying power?
Buying power is the total position size you can open based on your available balance and the leverage you choose.
Your available balance is your margin - the collateral you put up to hold a position. Leverage multiplies that margin into a larger position size. For example:
$100 balance at 10x leverage = $1,000 in buying power
$100 balance at 5x leverage = $500 in buying power
The higher the leverage, the more buying power you have from the same balance - but the less room the market has to move against you before your position is at risk.
How leverage affects your buying power
You choose your leverage when placing a trade. The relationship is straightforward:
Balance | Leverage | Buying power |
$100 | 5x | $500 |
$100 | 10x | $1,000 |
$100 | 20x | $2,000 |
Higher leverage means a larger potential gain from a price move, but also a larger potential loss. At 10x leverage, a 10% move against you wipes out your entire margin for that position. At 5x, it takes a 20% move.
What is isolated margin?
On Cronos app, every position uses isolated margin. This means the margin for each position is separate - one position cannot draw from the collateral assigned to another.
What this means in practice:
If one position is liquidated, it has no effect on your other open positions or your unallocated balance.
The maximum you can lose on any single position is the margin you allocate to it.
What reduces your buying power?
Your available buying power is based on the USDC balance in your perps account that is not already committed to an open position.
Two things reduce it:
Opening a position. The margin required for that position is locked until you close it.
Placing a limit order. Margin is reserved for pending limit orders even before they fill.
Closing a position or cancelling an open limit order releases that margin back to your available balance.
Questions
Why is my buying power less than I expected?
Your buying power is based on your available balance, not your total perps balance. If you have open positions or pending limit orders, some of your balance is already committed and is not available for new trades.
Can I use my Cronos wallet balance as margin?
Yes. When you submit an order, if you have insufficient funds in your perps account, funds are automatically transferred for you.
Does leverage change my liquidation risk?
Yes. Higher leverage means your liquidation price is closer to your entry price. A smaller adverse price move is enough to trigger liquidation. You can reduce your liquidation risk by using lower leverage or adding more margin to an open position.