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Why 100x Leverage Isn’t the Problem — Your Mindset Might Be

Let’s clear up a common misconception in trading:

Leverage isn’t the real issue. Poor risk management is.

Too many traders blame high leverage for their losses, but they’re ignoring the real cause — how they manage their position size and risk.

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What Actually Matters in a Trade?

Forget leverage for a second. Here’s what actually matters:

Your notional position size

Your dollar risk per trade

Whether you reach your desired exposure using 2x, 10x, 100x leverage — or no leverage at all — doesn’t change the outcome if your risk is well defined.

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Still Confused? Let’s Break It Down:

Portfolio Size: $100,000

Risk Per Trade: $1,000

Trade Example:

Long BTC at $100,000

Stop-loss at $99,000

Target at $102,000

That’s a 2:1 reward-to-risk setup (2R).

Now look at the same trade with different leverage:

Scenario A: $1,000 margin × 100x = $100K position

Scenario B: $10,000 margin × 10x = $100K position

Scenario C: $50,000 margin × 2x = $100K position

Scenario D: Spot buy $100K BTC (0x) = $100K position

In every case, the outcome is the same:

✅ $2,000 profit if target hits

❌ $1,000 loss if stop hits

The only difference is how much of your capital is tied up.