The ideal leverage: examples and when to use it responsibly

To trade with leverage safely, it is important to adapt it to the market situation and use it with a solid strategy. The x3, x4 and x5 levels are effective if applied correctly, but each has its specific risks and uses.

Example 1: x3 leverage (moderate)

If the price goes up by 10%, your profit will be 10 x 3 = 30% on the margin.

Ideal for lower volatility situations or when you want to trade more safely.

Example 2: x4 leverage (medium)

If the price goes up by 25%, you gain 25 x 4 = 100% on your margin.

Useful to take advantage of clearer trends or swings on a larger time frame.

Example 3: x5 leverage (maximum liability)

If the price goes up by 40%, you earn 40 x 5 = 200% on your margin.

Condition for use: Only on entries based on solid technical analysis, such as when the daily RSI is below 30 (ideally between 15 and 20), indicating a deep correction with a high probability of recovery.

Conclusion:

Use x3 for safety, x4 to take advantage of clear trends and x5 only in ideal and well-analyzed scenarios, such as strong corrections in Bitcoin or cryptos with solid technical support.

Always remember to manage risks with stop-loss and not risk more than 1-2% of your capital in a single operation.

Leverage is not luck, it is strategy.