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. One small market move can wipe out your $100 deposit if you're not careful.
Influencers often show off high profits from deals to attract attention, but these can be misleading. They can 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 large losses as well as large profits.
