> For the complete documentation index, see [llms.txt](https://docs.bitoftrade.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bitoftrade.com/for-traders/trading-platform/features/leverage-trading.md).

# Leverage trading

### Leverage trading <a href="#leverage-trading" id="leverage-trading"></a>

A leverage trade allows you to pay less than the full amount of your investment, which increases your buying capacity to explore and take advantage of market opportunities. The amount of money you can use for buying and selling tokens is relative to your initial investment and determined by your chosen leverage amount. You can leverage market orders, limit trades, and stop orders on our platform. All you need to do is deposit collateral to use this feature.

More about our leverage trade types:

**Market orders.** A market order is an order to buy or sell a stock at the market's current best available price. It typically ensures execution, but it doesn’t guarantee a specified price. Market orders are ideal if you want to execute a trade immediately.

<figure><img src="/files/BhhhFLsRt5F3rVd8Yvg2" alt=""><figcaption></figcaption></figure>

**Limit Trading.** With a limit order, you can buy or sell tokens at a specified price. A buy order will be executed at your specified price, and likewise, a sell order will be executed at your specified price.

**For example:** Let's say you want to buy ETH, which is now $4,000, but you think that the price will drop and you may be able to buy ETH at a cheaper price. You place a limit order on bitoftrade to buy ETH for $3,000, and when the value of ETH falls to your desired price, your trading limit order will be executed.

<figure><img src="/files/Dc2Fmua6CwQfDBfjO3yL" alt=""><figcaption></figcaption></figure>

**Stop-loss orders.** A stop-loss is an order placed on an exchange to buy or sell a specific token once its market value reaches a certain price. The whole idea around stop loss is to limit your losses when trading and reduce the risk to your portfolio. If the market reaches your specified value, a stop-loss can be triggered and your funds can be traded out of their current position.

<figure><img src="/files/9kzOjFVNMpmAK63aeYFx" alt=""><figcaption></figcaption></figure>


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