โ๏ธ๐ฐ Leverage: A Double-Edged Sword!
Have you heard about leverage in trading and wondered what it is? ๐ค In short, leverage is a tool that allows you to increase your purchasing power in the market using borrowed funds from the platform. This means you can control a larger amount of cryptocurrencies with a small amount of your own capital. ๐
How does it work?
If you have $100 and use 10x leverage, you are effectively trading with $1,000. This doubles your potential profits, but! โ ๏ธ And this is the most important part, it also doubles your potential losses by the same ratio. So, a small step in the wrong direction can lead to the liquidation of your entire portfolio. ๐
How to use it cautiously?
Start small: Donโt start with a very high leverage. ๐ข
Learn risk management: Always use stop-loss orders to protect your capital. ๐ก๏ธ
Don't trade all your money: Allocate only a small part of your portfolio for leveraged trading. ๐ผ
Leverage is a very powerful tool if used wisely and with a complete understanding of the risks. ๐ก
โ Important Note: Many Islamic scholars consider trading with leverage to be haram, due to the presence of elements of "riba" (interest) and "gharar" (excessive risk) that contradict religious rulings. ๐