What is leverage in trading and why can it leave you broke? 🔥💲

Leverage is like borrowing money from the market to trade with more than you actually have.💲💲💲

If you have $10 and use 10x leverage, you can trade as if you had $100. 🕹️

If the price goes up 1%, you gain as if you had invested $100.💲✨

But if the price goes down 1%... you lose your $10 and get kicked out of the game. Goodbye, thanks for playing.🥲🔥

This is called liquidation: when you no longer have margin to withstand the loss and the system automatically closes your position. ⚠️

Leverage multiplies profits, yes... but also mistakes. It's like running in sandals on the highway: it might go well, but the odds are not in your favor.⚠️⚠️

Direct advice:🫣👋🏻

If you're just starting, better not to even look at it. First, strategy, emotional control, and risk management. Then we can talk about multiplying.