Many people misunderstand how leverage works in trading. For example, using 100x leverage means you can control a large position with a small amount of money. If you have $100 and use 100x leverage, you control $10,000 worth of assets, with the exchange lending you $9,900. A small market move can wipe out your $100 margin if you’re not careful.
Influencers often show high returns from trades to attract attention, but these can be misleading. They might use small positions or high leverage to make their results look impressive while minimizing their own risk. Always be cautious and understand that high leverage can lead to big losses as well as big gains.
