Leveraged Trading

An alternative term for leverage trading, used interchangeably to describe the practice of using borrowed capital to amplify trading positions beyond what a trader's own equity would allow. In the DeFi context, the term appears frequently in the documentation and marketing of decentralized perpetuals and margin trading protocols. See the Leverage Trading entry for a full definition. Drift Protocol, Solana's primary on-chain perpetuals exchange, uses 'leveraged trading' as the primary descriptor for its core product offering, supporting up to 20x leverage on major crypto assets with a fully on-chain order book and cross-margin account model. Example: Drift Protocol on Solana allows users to access leveraged trading on BTC, ETH, SOL, and dozens of other assets with up to 20x leverage, settling all positions on-chain with transparent liquidation mechanics. By early 2025, Drift had processed over $50 billion in cumulative trading volume, establishing itself as the leading decentralized leveraged trading venue on Solana. Why it matters for Web3: As with leverage trading more broadly, the growth of leveraged trading protocols on Solana through Drift demonstrates the increasing capability of non-EVM decentralized platforms to serve sophisticated financial use cases. The parallel development of leveraged trading infrastructure across multiple chains reflects growing user demand for decentralized alternatives to centralized perpetuals exchanges.

Category: exchanges trading

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