Leverage is basically the same as margin, which is using stock shares or cryptocurrency (I'll just use "shares" for the remainder of this comment) that you own

Leverage is basically the same as margin, which is using stock shares or cryptocurrency (I'll just use "shares" for the remainder of this comment) that you own as collateral for a loan to buy more shares. It's often given as a ratio, like 2X. This means that if you buy $100 worth of shares, you can borrow another $100 worth and own $200 worth. The catch is that if the value of the asset drops, you still need to be able to cover your loan with the asset. So if you bought 1 share for $100, you can leverage it to buy 1 additional share. But it's important to note that the actual cash value of your account is still only $100. If the share price drops to $50, then you will likely face liquidation. Why? Because you're still responsible for the $100 loan. If you get liquidated, you're forced to sell your two shares for $50 each, $100 total. But then you have to pay back the loan, so you end up with $0. The upside, however, is that if the share price went up to $150, you could sell your two shares for $150 each ($300 total), pay back the $100 loan, and end up with $200 net. > and if there are (or not) any mild-leverage alternatives without liquidation The only way to do this is to borrow at a lower ratio. ie, $100 of your own cash, then borrow $20 to buy 0.2 shares. The $100 share price would have to drop to ~$17 before liquidation occurs. For brokers to remain solvent, liquidation must occur if the value of the asset drops below the value of the loan.