Learn how leverage works :
Risk at Different Leverage Levels with 100$ account Example:
2X Leverage – Minimal Risk
You borrow another $100, so your total trade is $200.
A 50% drop in price now wipes out your entire $100 (since your total capital is covering a $200 position).
You get liquidated if the price drops by 50%.
3X Leverage – Increased Risk
You now trade with $300 using your $100 as margin.
A 33% price drop will liquidate your position.
Losses happen faster, and a small price swing can force you out of the trade.
20X Leverage – High Risk
You control $2,000 with your $100 margin.
A 5% price drop liquidates you completely.
This level is very risky, as even minor market fluctuations can wipe out your entire capital.
100X Leverage – Extremely High Risk (basically Gambling)
You control $10,000 with just $100.
A 1% price drop leads to full liquidation—your $100 is gone instantly.
This level of leverage is essentially a high-stakes gamble, where the market can wipe you out in seconds.
if you want to know something
just comment