📌 Margin Trading
Margin trading means using borrowed funds from the exchange to amplify your buying power.
✅ You contribute part of the capital yourself, and borrow the rest to open a larger position.
👉 Example: You deposit $100, borrow another $100, and now you can trade with $200.
📌 Leverage
Leverage tells you how many times your capital is multiplied in a trade.
2x leverage = 2 times your capital
5x leverage = 5 times your capital
🚀 This can lead to bigger profits… but also bigger losses.
👉 Example: With 5x leverage on BTC, a +2% move equals +10% profit.
But a -2% move means -10% loss. ⚠️
📌 Risk Management is Everything
🔥 High leverage = faster gains, but also faster liquidations.
✅ Always set a stop-loss.
✅ Begin with small positions and low leverage until you gain experience.
⚠️ Pro Tip: Leverage and margin trading are designed for advanced traders. If you’re still learning, focus on spot trading first before stepping into this high-risk, high-reward arena.
#LeverageTrading #MarginTrading #CryptoTrading #RiskManagement
