🟢Understand leverage
👉The idea of borrowing funds on margin or futures to make larger gains can sound attractive. However, with this comes the risk of being liquidated and losing all your capital quickly, as your losses are enlarged too.
🔵Liquidation isn’t necessarily bad if you stay within your limits. However, losing more than you planned or risking too much money isn’t responsible trading. Before you start using leverage, make sure you understand exactly how it works.
🟣You may have seen leverage displayed as a multiplier like 10x, multiplying your initial capital by 10. $10,000 leveraged 10x gives you $100,000 to trade, and your initial capital is used to cover your losses. Once your capital runs out, the exchange liquidates your position.
🟣Leverage trading can be used irresponsibly. It has a much higher risk, so make sure to carefully study Coin-Margined Futures and USDT-Margined Futures to understand the risks fully.
