#Day104 : How to Use Leverage in Futures Trading
Leverage in futures trading allows you to control larger positions with a smaller amount of capital. On platforms like Binance Futures, you can use leverage from 1x to 125x, depending on the asset.
For example, with 10x leverage, a $100 margin lets you trade a $1,000 position. This amplifies both profits and losses, so it’s crucial to use leverage wisely. Start with low leverage (2x–5x) until you're confident. Always set a stop-loss to manage risk, and never invest more than you can afford to lose.
Monitor liquidation price—if the market hits it, your position is closed automatically. Leverage is a double-edged sword; it can boost returns or wipe out your funds. Use it strategically for short-term trades, and always combine it with a solid risk management plan. Discipline and education are your best allies in leveraged futures trading.
