THN
1,699 views
4 Discussing
Hot
Latest
See original
š” 1. What is leverage?
š Leverage (or margin trading) is when you trade an amount that you actually do not have by borrowing it from the exchange.
š¹ Example:
You have $100, but you take leverage Ć10.
Now you are effectively trading with $1000.
If the asset rises by 5% ā you will earn $50 (not $5) because the amount is larger.
But if the asset falls by 5% ā you will lose all $100. š¬
Leverage = āearn faster or lose faster.ā
ā ļø Remember:
Higher leverage = higher risk.
Always use stop-loss!
#Leverage #ŠŠµŠ²ŠµŃŠøŠ“Š¶ #Š¢ŃŠµŠ¹Š“ŠøŠ½Š³ #CryptoBasics #THN
š Leverage (or margin trading) is when you trade an amount that you actually do not have by borrowing it from the exchange.
š¹ Example:
You have $100, but you take leverage Ć10.
Now you are effectively trading with $1000.
If the asset rises by 5% ā you will earn $50 (not $5) because the amount is larger.
But if the asset falls by 5% ā you will lose all $100. š¬
Leverage = āearn faster or lose faster.ā
ā ļø Remember:
Higher leverage = higher risk.
Always use stop-loss!
#Leverage #ŠŠµŠ²ŠµŃŠøŠ“Š¶ #Š¢ŃŠµŠ¹Š“ŠøŠ½Š³ #CryptoBasics #THN
Login to explore more contents