Leverage ⚙️ is a tool provided by trading platforms like Binance, allowing you to trade with a larger amount than your actual capital 💰.

Simply put:

If you have $100 💵, and with a leverage of ×10, you can open a position as if you own $1000 🚀!

How does it work?

Real-life example:

Your capital: $100

Leverage: ×10

You can open a position of: $1000

Profit and loss:

If the price rises by just 1% 📈, you earn 10% of your capital.

But if the price drops by 1% 📉, you also lose 10%.

Margin:

This is the actual amount you own and are risking.

If your losses reach the margin value, the position will be liquidated ❌.

Its risk:

Leverage multiplies profits but also multiplies losses ⚠️. You could lose your entire capital quickly if you don't have a strong plan or risk management.

Important tips:

Do not use high leverage if you are a beginner 🧠.

Always set a stop loss (Stop Loss) ⛔.

Trade with amounts you can afford to lose only ☝️.

Try on a demo account first to learn 🧪.

In summary:

Leverage is a double-edged sword ⚔️, use it carefully and wisely!

#Trading #Binance #Leverage #Crypto #TradingEducation #crypto #binance #leverage