🔴 $NOT $PEPE 🔴

🔴 Simple Risk Management Strategy for Futures Trading🔴 .

Let's assume you have 100 USD to trade with.

1. Position Sizing with Leverage:

Ensure your total position, including leverage, does not exceed 100 USD. For example, with 50x leverage, your margin should be no more than 2 USD. This keeps your entire position within 100 USD, preventing liquidation as the position is fully covered by your funds.

2. Why and When to Use Leverage:

Using 5x leverage means you borrow 5 times your funds, while 50x leverage means 50 times. Higher leverage increases risk; trading with a position larger than your funds introduces a liquidation point. By keeping your leverage within your total funds, you can avoid liquidation.

3. Example:

Open a position with a 1 USD margin and 50x leverage, creating a 50 USD position. If the chosen crypto rises by 1%, you've gained 50% on your margin (0.50 USD). A 10% move results in a 500% gain on your margin (5 USD on your 1 USD margin).

🔴 Key Points:

Always keep your leveraged position within your total funds to avoid liquidation. Leverage offers greater potential returns but also increases risk. Use it wisely to manage positions and trade safely and effectively.

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