đ Leverage & Margin Trading â Explained Simply! đđĽ
đš Margin Trading
You borrow funds from the exchange to open bigger trades than your balance allows.
đ° Example: You have $100, borrow $100, and trade with $200 total â double the buying power! âĄ
đš Leverage 101
Leverage multiplies your position size:
đ¸ 2x Leverage = 2x your money
đ¸ 5x Leverage = 5x your money
đ More leverage = more potential profit... but also higher risk! â ď¸
đ§ Quick Example:
You open a BTC trade using 5x leverage:
đ If BTC rises 2% â You earn 10% profit
đ If BTC drops 2% â You lose 10%
đĄď¸ Risk Management = Survival Tool
⥠High leverage = quick wins or fast losses.
â Always set a stop-loss
â Start with low leverage (1xâ3x)
â Never risk your full balance
đĄ Final Thought:
Leverage and margin trading are powerful tools, not shortcuts.
Learn first. Trade smart. Then scale up. đź
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