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๐ค Word of the Day = LEVERAGE โ ๏ธ
๐ WODL ๐
The term "leverage" refers to the use of borrowed capital or financial instruments to amplify potential returns on an investment. โ๏ธ
๐ฐ In the world of crypto, leverage allows traders to open larger positions than their actual account balance โ for example, using 10x leverage means controlling a position ten times bigger than your original investment. ๐๐
While leverage can magnify profits, it can also increase losses just as quickly. โ ๏ธ๐ Thatโs why understanding how and when to use leverage is crucial for managing risk and maintaining a sustainable trading strategy. ๐ฏ
๐ก Experienced investors often balance leverage with strong risk management, stop-loss orders, and clear entry-exit plans. ๐ง ๐
How do you use leverage in your crypto trading โ as a power tool or a risky gamble? ๐ค๐ผ
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