Unveiling: 10x, 75x, 125x Leverage! Overnight Wealth or Losing Everything?
Leverage, this magical tool in trading, allows you to make big money with a small amount, but it can also lead to losing everything. Today, let's talk about 10x, 75x, and even 125x leverage, how they affect your trading, and how to use this double-edged sword well.
What is leverage?
Leverage allows you to control more market positions with less money.
10x leverage means you can trade with 1,000 using 100.
75x leverage means 100 can be used as 7,500.
125x leverage is even more exaggerated, allowing 100 to control a market position of 12,500.
For example, if you invest 100:
With 10x leverage, you can trade a market of 1,000.
With 75x leverage, the position jumps to 7,500.
With 125x leverage, you have a market position of 12,500.
How to calculate winnings?
If the market surges, with a return rate of 1,000%, let's see how much different leverages can earn:
With 10x leverage, you earn 10,000.
With 75x leverage, you earn 75,000.
With 125x leverage, you directly earn 125,000!
But what about the risks?
Higher leverage means higher risks:
With 10x leverage, if the market drops by 10%, your position is gone.
With 75x leverage, a slight 1.33% drop in the market means saying goodbye.
With 125x leverage, a 0.8% market drop wipes out your money.
Moreover, high leverage comes with higher psychological pressure and costs, so you need to be cautious.
How to reduce risks?
Beginners should start with 10x leverage, taking it slow.
Remember to set stop-losses; if the market doesn't feel right, pull out quickly.
Each trade should not risk more than 1-2% of the total investment portfolio.
Always keep an eye on the liquidation line to see how long the market can fluctuate.
Who is suitable for high leverage?
10x leverage can be tried by beginners or those with average risk tolerance.
75x leverage is for experienced traders.
125x leverage is meant for experts who can operate precisely under high risks.
Leverage, when used well, can lead to profit; when used poorly, it results in losses.
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