$BTC The article was inspired by @Yojik
About trading with x1 leverage on futures and decided to find out how to work with it online.
On Binance Futures, you can enter with x1 leverage.
However, it is important to understand how leverage changes work and how they affect your position.
How it works:
Opening a position with x1 leverage:
You open a position with low leverage (for example, x1), which minimizes the risk of liquidation.
In this case, you use more of your own funds to secure the position.
Increasing leverage:
If the price moves in your favor, you can increase the leverage through the position settings.
Increasing leverage reduces the amount of collateral (margin) needed to maintain the position and frees up some funds for other trades.
However, remember that increasing leverage also increases the risk of liquidation, as less margin is required for the same position size.
Example:
You opened a long position on BTCUSDT with x1 leverage and a margin of 1000 USDT.
The price increased, and you decide to increase the leverage to x10.
After increasing the leverage, your margin will decrease (for example, to 100 USDT), and the freed-up 900 USDT can be used for other trades.