📊 Leverage: Opportunities to Multiply Profits or Catastrophic Risks?
What is leverage?
It is a tool that allows you to control a trading volume larger than your actual capital by borrowing from the platform.
Opportunities to Multiply Profits
It enables you to achieve larger profits when the price moves in your favor by a small percentage.
Suitable for experienced traders capable of making quick decisions.
Catastrophic Risks
Losses also amplify, and it may lead to “liquidation” if the price exceeds the specified level.
It requires precise risk management (stop loss) and an appropriate position size.
📌Tips to Mitigate Risks
- Use low leverage (1×3 or 1×5) at the beginning.
- Set stop-loss orders before opening any trade.
- Do not risk more than 1–2% of your capital in a single trade.
Conclusion
Leverage is a double-edged sword: a key to quick profits if used wisely, and a trap for significant losses if mishandled. Always ensure gradual learning and smart capital management.
🔰 Good luck in your trading!
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