✅ First: What is Leverage?
It is a tool that allows you to trade with a larger amount than your actual capital, thus multiplying your profits (and also your risks).
Example: If you invest 10 dollars with a leverage of ×10, it's as if you are trading with 100 dollars.
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✅ Advantages of trading with leverage on Binance:
1. Amplifying profits
• You achieve greater profits even with a small price movement.
• Useful in sideways markets or fast trends.
2. Entering large trades with a small capital
• Suitable for beginners with limited capital.
• You benefit from price movements on a larger scale.
3. Opportunity to profit from both bullish and bearish markets
• Long trades to profit from rises.
• Short trades to profit from declines.
4. Smart orders:
• Binance provides advanced tools such as: stop loss, take profit, automatic liquidation.
5. Flexible leverage:
• You can choose leverage from ×1 to ×125 depending on the currency and the type of contract.
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⚠️ Important Notice:
Despite the advantages, trading with leverage carries high risks:
• Your losses can reach your entire capital quickly.
• Therefore, it is essential to manage your capital well and always set stop loss orders.