Leverage in trading means borrowing money to increase the size of your position — so you can trade with more than what you actually own.

Let’s understand by Quick Example:

Let’s say you have $100, and you use 10x leverage.

Now, you can open a trade worth $1,000 (your $100 × 10).

Why traders use leverage:

• To maximize potential profit with a small amount of capital.

• To take bigger positions in the market.

But there’s a catch:

• Higher leverage = higher risk.

If the market moves just a little against you, you can lose your entire money quickly — this is called liquidation.

In crypto (like Binance):

• Leverage can go from 2x to 125x (depending on the token and platform).

• It’s popular in futures trading.

⸻

Catchy way to remember it:

Leverage is like trading on steroids — fast gains or fast pain.