LEVERAGE IS MORE DANGEROUS THAN YOU THINK
Many new traders are attracted to leverage because it allows them to open large positions with little money. But what they don’t tell you is that you can also lose ALL the money you invested, and even more.
What is leverage?
It’s like borrowing money from the exchange to make a larger trade. For example, if you have €100 and use 10x leverage, you are trading as if you had €1,000. But if the market moves just 10% against you… you lose the €100 you put in.
And if you use higher leverage (like 50x or 100x), even a 1% drop or rise can completely liquidate your position.
The dangerous part is that losses multiply just like gains. If you have no experience, it’s very easy to fall into the trap of "recovering it with the next one." And that leads many to empty their accounts.
Leverage is not for beginners. If you don’t know what you’re doing, it’s like playing the lottery. Learn first, practice without leverage, and protect your capital. Never risk money you can’t afford to lose.