Leverage Trading:
From 10x leverage to 125x leverage, can you really get rich overnight or lose everything??
10x Leverage: For example, if you have 100 dollars and use 10x leverage, you can control assets worth 1000 dollars. Doesn't it feel like your wealth has doubled in an instant?
75x Leverage: Still with that 100 dollars, using 75x leverage, you now have 7500 dollars to operate with. This feels like a windfall from heaven!
125x Leverage: This is quite a bold choice, turning 100 dollars into 12500 dollars in an instant. Feeling like you’re on top of the world?
Liquidation Risk: With 10x leverage, a 10% drop in price will trigger liquidation.
What about 75x leverage? A drop of 1.33% will wipe you out.
And 125x leverage is even more extreme; just a 0.8% adverse fluctuation could make your investment go up in smoke.
Psychological Pressure: The stress from high leverage is no joke; even a slight price fluctuation can make your heart race and keep you up at night.
High Costs: Large positions mean higher trading fees and financing costs, especially with overnight positions, where money flows out like water.
Start Small: If you are a beginner or have a low risk tolerance, it's wise to start with 10x leverage or lower.
Set Stop-Loss Orders: Don't be foolish and wait to lose money; use stop-loss orders to automatically close unprofitable trades and limit losses. That’s the smart move.