Risks of Trading Leverage: Understanding Potential Losses While trading leverage can significantly increase profit, it also increases risks.

Returning to the 1:10 leverage example, if the market moves against you, your loss also increases tenfold. For instance, if the asset's price drops by 1%, instead of losing $1 from your initial investment, you lose $10. This can quickly lead to substantial financial losses, particularly in a highly volatile market. Therefore, using trading leverage requires a deep understanding of the market, strategic approach, and strict risk management. It's especially important to set stop-loss orders to minimize potential losse #Technology #Marketing experience #BinanceSquareFamily