Leverage is a financial tool that allows investors to trade with more money than they actually have by borrowing additional funds from the trading platform. In other words, leverage allows you to increase the size of your investment without having to own all of the capital.

For example:

• If you invest $100 with 10x leverage, you will be able to trade as if you owned $1,000 ($100 x 10).

Pros of leverage:

• Increased potential profits: If the market moves in your favor, leverage can multiply your profits.

Cons of leverage:

• Increased risk: If the market moves against you, your losses will also multiply. If the losses are too large, your account may be liquidated or an additional deposit may be required (Margin Call).

Therefore, it is best to use leverage with caution, especially in a volatile market such as cryptocurrencies, because you can lose all of your capital quickly.

Therefore, it is best to use leverage with caution, especially in a volatile market such as cryptocurrencies, because you can lose all of your capital quickly.