Revealed: 10x, 75x, 125x leverage! Get rich overnight or go bankrupt?
Leverage, this magical tool in trading, can make you make big money with a small amount of money, but it can also make you lose everything. Today, let's talk about 10x, 75x, and even 125x leverage to see how they affect your trading and how to use this double-edged sword.
What is leverage?
Leverage allows you to control more market positions with less money.
10x leverage means that you can use 100 yuan as 1000 yuan to speculate.
75x leverage means that 100 yuan is used as 7500 yuan.
125x leverage is even more exaggerated, 100 yuan can be speculated into a market position of 12,500 yuan.
For example, if you invest 100 yuan:
With 10x leverage, you can speculate in a market of 1000 yuan.
With 75x leverage, the position directly soars to 7500 yuan.
With 125x leverage, you have a market position of 12,500 yuan.
How to calculate the win?
If the market rises sharply and the return rate is 1000%, let's see how much you can earn with different leverages:
10x leverage, earn 10,000 yuan.
75x leverage, earn 75,000 yuan.
125x leverage, earn 125,000 yuan directly!
But the risk?
The higher the leverage, the greater the risk:
10x leverage, if the market falls 10%, your position is gone.
75x leverage, if the market falls slightly by 1.33%, you have to say goodbye.
125x leverage, if the market falls 0.8%, your money is gone.
Moreover, the high leverage, the psychological pressure is also high, and the fees are also high, so you have to be careful.
How to reduce the risk?
Newbies should start with 10x leverage and take it slow.
Remember to set a stop loss, and withdraw quickly if the market is not right.
For each transaction, the risk should not exceed 1-2% of the total portfolio.
Always keep an eye on the liquidation line to see how long the market can last.
Who is suitable for high leverage?
10x leverage, beginners or those with average risk tolerance can try it.
75x leverage, that must be affordable for experienced traders.
125x leverage, that is for experts who can operate accurately under high risks.
Leverage is something that can make money if used well, but lose money if not used well
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