**Used margin** is the amount of your trade balance that is initially withheld when you open a spot position on margin. Unlike free margin, used margin does **not** count unrealized profits/losses.

Used margin will decrease when part or all of a spot position on margin is closed.

Used margin is calculated as the size or "Cost" (Avg Price x Open Volume) of an open spot position on margin divided by the level of leverage selected.

Leverage Level | Used Margin |

2x | 1/2 of the position size |

3x | 1/3 of the position size |

4x | 1/4 of the position size |

5x | 1/5 of the position size |

For example, if you buy 0.5 XBT for 5,000 USD (the price is 10,000 USD per XBT):

- At 5X leverage, your used margin is 1,000 USD.
- At 4X leverage, your used margin is 1,250 USD.
- At 3X leverage, your used margin is 1,667 USD.
- At 2X leverage, your used margin is 2,500 USD.

Assuming the same position size, it is **better to choose the higher level of leverage** because it leaves more free margin in the account and thus has a larger buffer from liquidation.

However, if the position size is maximized based on the leverage selected, then a higher leverage would be more risky.