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

Simply put:

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

How does it work?

Real-world example:

Your capital: $100

Leverage: ×10

You can open a position size 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 loss reaches the margin value, the position is liquidated ❌.

Its risk:

Leverage amplifies profits but also amplifies losses ⚠️. You could quickly lose your entire capital 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 wisely and cautiously!

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