๐ What is Leverage & Margin Trading? Letโs Break It Down! ๐๐ฅ
๐น Margin Trading
In margin trading, you borrow funds from the exchange to trade bigger positions than your own capital.
๐ฐ Example: You have $100 and borrow another $100 โ You trade with $200 total.
๐น What is Leverage?
Leverage means multiplying your capital to trade bigger amounts.
๐ธ 2x Leverage = 2x your money
๐ธ 5x Leverage = 5x your money
๐ Bigger leverage = bigger profit potentialโฆ but also bigger risk! โ ๏ธ
๐ง Example:
You use 5x leverage to buy BTC.
๐ If BTC goes up 2% โ You earn 10% profit
๐ If BTC goes down 2% โ You lose 10%
๐ก๏ธ Risk Management is a MUST!
โก High leverage brings quick profitsโbut also fast losses
โ Always set a stop-loss
โ Start with low leverage
โ Never risk it all!
๐ง Remember:
Leverage and margin trading are for experienced traders.
Understand the market before diving in.
๐ผ Trade smart. Learn first. Earn next.
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