Leverage in crypto trading refers to using borrowed funds from a cryptocurrency exchange or broker to increase the size of your trading position. It allows traders to amplify their potential profits as well as their losses. For example
If you use 2x leverage it means you can control double the amount of cryptocurrency with the same initial investment. However it also increases the risk as losses are magnified and you may be required to maintain a minimum margin to keep the position open. It's essential to use leverage cautiously and be aware of the potential risks involved.
