Skip to main contentLeverage allows you to amplify your potential returns when trading on Space. Instead of paying the full amount for your position upfront, you can use a fraction of the total value as collateral - giving you exposure to a larger position size. With each prediction you choose the price and amount of shares you wish to buy. With leverage, you’re able to buy more shares with your capital and gain greater exposure to the market.
Example Market: “Will the U.S. government shut down before the end of the year?”
Current Market Probability: 15% (YES shares priced at $0.15)
- You decide to buy 1,000 YES shares at $0.15.
- Without leverage, that costs $150.
- With 5× leverage, you only need to deposit $30 as margin (20% of the position value).
- If the market shifts to 30% ($0.30), your position doubles in value - now worth $300, giving you a $150 profit on just $30 margin (500% ROE).
- But if the odds fall to ≈13.33% (≈$0.13), your position would be liquidated.
