🇸🇦 Leverage in Trading

Leverage allows you to control a larger trade with a smaller capital. It is a powerful tool that multiplies profits, but at the same time, it also multiplies losses.

🔹 How does it work?

If you use 10x leverage with $100, you can open a position of $1,000. A 1% price movement in your favor = a 10% profit on your capital. But a 1% movement against you = a 10% loss.

💡 Example:

Account balance: $500

Leverage: 20x

Trade size: $10,000

If the market drops by 5%, your account will be completely liquidated.

That's why using leverage must be done with caution, along with stop-loss orders and strong risk management.

📚 Sources:

Binance Academy – Margin and Leverage

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🔍 This is information, not advice, and the market always carries risks, think with your mind and make your own decision.

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