#Leverage:
‼️Binance Leverage: Trade Smart, Avoid Risks!‼️
Leverage on Binance can significantly increase your profits, but the risks also increase proportionally. To protect your capital, follow these key rules:
1️⃣Start small
For beginners: 2x-5x leverage. enough to understand the mechanisms and reduce the risk of liquidation. High leverage is only for professionals.
2️⃣Always use stop loss and take profit
Your best friends: stop loss to limit losses, take profit to fix profits. Always follow them!
3️⃣Manage your capital
Never risk everything. Allocate no more than 1-2% of the deposit to one contract and diversify your positions.
4️⃣Understand the risk of liquidation
Remember: with 10x leverage, a 10% price drop can lead to the complete loss of your collateral. Have enough margin.
5️⃣Stay informed
The crypto market is very volatile. Constantly monitor news and trends that may affect your positions.
6️⃣Choose isolated margin
For safety, especially for beginners, use isolated margin. It limits your risk to just one position.
7️⃣Practice on a demo account
Use the Binance Futures demo account to practice strategies without financial risk.
8️⃣Consider commissions
Trading with leverage involves interest and commissions. Plan your trades taking these costs into account.
9️⃣Trade without emotion
Stick to your trading plan. Avoid impulsive decisions and try to "win back".
🔟Study Binance Academy
Expand your knowledge. Binance Academy and Binance Research are your resources for understanding margin trading and risk management.
Remember: Do not trade with money you cannot afford to lose. Credit position increases both profit and risk of capital loss many times over.
Successful and relevant trading!