💥✨️ Leverage✨️ 💥
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💥✨️ Risks and work mechanisms ✨️💥
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identification:
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Leverage is a term that refers to the use of borrowed capital to trade cryptocurrencies or other financial assets. It amplifies your buying or selling power so that you can trade with more capital than you currently have in your portfolio. You can borrow up to 100 times your account balance, depending on the digital currency trading platform you are trading on.
clarification:
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For example, imagine you have $1,000 in your Binance account but want to open a $10,000 trade in BNB. With 10x leverage, $1,000 would have the same purchasing power as $10,000.
Risks:
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High leverage trading may require less capital to start with, but increases the chances of liquidation. If your leverage is too high, a price move of even 1% could result in a loss of your entire capital.
