Risk Management in Futures Trading

To manage risk in futures trading with $100, ensure your total leveraged position doesn’t exceed your available funds. With 50x leverage, your margin should be capped at $2, resulting in a $100 position. This strategy helps avoid liquidation since your position stays within your available funds.

Leverage means borrowing against your funds, and higher leverage, such as 50x compared to 5x, amplifies both potential profits and risks. The main risk of high leverage is liquidation if the position exceeds your available funds. For example, using a $1 margin at 50x leverage creates a $50 position. If the crypto increases by 1%, you earn 50% on your margin, or $0.50. If it rises by 10%, you earn 500%, or $5 on your $1 margin.

Stay safe & play safe.

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