What is Leverage & Margin Trading? ⚡
📌 Margin Trading
This means trading with borrowed money from the exchange.
✅ You put up some of your own capital and borrow the rest to open a bigger position.
👉 Example: You have $100, borrow another $100, and now you can trade with $200!
📌 Leverage
Leverage shows how many times your capital is multiplied in a trade.
2x leverage = 2 times your capital
5x leverage = 5 times your capital
🚀 Higher profits potential… but also higher risks!
👉 Example:
If you buy BTC with 5x leverage and BTC pumps just 2%, you gain 10% profit! 💰
But if BTC drops 2%, you also lose 10%! ⚠️
📌 Risk Management is Key
🔥 High leverage = fast profits but also fast losses.
✅ Always use a stop-loss.
✅ Start small with lower leverage.
⚠️ Remember:
Leverage & margin trading are mainly for advanced traders. Master the basics first, then step into this high-risk, high-reward game!
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