👉Mastering Leverage: How to Trade Smart Without Losing It All

Leverage can be a powerful tool in trading, allowing you to amplify gains, but it also comes with hidden risks that many traders overlook. Here’s how to use leverage wisely and avoid liquidation.


1. Understanding Leverage

Leverage lets traders borrow funds to increase their position size. While this can boost profits, it also magnifies losses, making risk management essential.


2. Common Mistakes That Lead to Liquidation

  • Overleveraging – Using high leverage (50x-100x) increases the risk of getting wiped out by small price movements.

  • Ignoring Stop-Loss Orders – Without a stop-loss, traders risk losing their entire position in a market downturn.

  • Not Tracking Funding Rates – Hidden fees and overnight funding costs can quietly drain your balance.


3. How to Use Leverage Safely

✅ Stick to low leverage (2x-5x) to limit exposure.

✅ Set stop-loss orders to cap potential losses.

✅ Monitor fees & funding rates before opening a trade.

✅ Never trade with money you can’t afford to lose.


🔥 Leverage is a double-edged sword—use it wisely!

#Liquidations #LeverageRisk #TradingTypes101