The difference between the two methods of opening positions, beginners must study this to avoid pitfalls!
One, two opening methods: 1,000 USDT and 2,000 USDT:
Method 1: Use 1,000 USDT, open 10x leverage → The nominal position value is 10,000 USDT.
Method 2: Use 2,000 USDT, open 5x leverage → The nominal position value is also 10,000 USDT.
It looks like you control the 'position size' the same, both are 10,000 USDT, but the principal invested and the leverage multiples are different.
Two, in the most ideal case (ignoring transaction fees, funding rates, etc.):
With 10x leverage (1,000 USDT open): a 10% reverse price fluctuation could lead to liquidation.
With 5x leverage (2,000 USDT open): a 20% reverse price fluctuation could lead to liquidation.
