Are there those whose shoulder only affects the liquidation, and if you go into the positive, the profit margin is not affected, but only the invested money?
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I'll be a bit stuffy. But it might come in handy for someone. If the order goes into the negative Leverage on Binance in futures trading is a tool that allows you to trade with a larger amount than what is in your balance. It increases both potential profit and risks. For example: If you have $100 and you use 10x leverage, you can open a position of $1,000. If the market moves in your favor, profits will be calculated based on the total amount ($1,000), not just your deposit ($100). But if the price changes against you, losses also increase. If losses reach your deposit ($100), the position will be liquidated. Key points: 1. Leverage range: Binance allows you to choose leverage from 1x to 125x (depends on the asset). 2. Margin: The amount you invest is called margin. The higher the leverage, the less margin is required to open a position. 3. Liquidation: In the case of a strong price movement against you, if the balance becomes insufficient to maintain the position, liquidation will occur. 4. Risk: High leverage increases the likelihood of both quick profits and liquidation. For beginners, it is recommended to use low leverage, such as 3x–5x, to reduce risks.
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