Leverage Trading: 10x to 125x, Overnight Wealth or Total Ruin?
10x Leverage: For example, if you have 100 dollars and use 10x leverage, you can control 1000 dollars in assets. Doesn't that feel like your worth just doubled in an instant? 75x Leverage: With that same 100 dollars and 75x leverage, you have 7500 dollars to operate with. This is simply a windfall from the sky! 125x Leverage: This is a bold choice, turning 100 dollars into 12500 dollars in an instant. You must feel like you're heading to the stars!
10x Leverage: With a profit of 10000 dollars, your total assets become 11000 dollars, and you feel just great. 75x Leverage: With a profit of up to 75000 dollars, your total assets soar to 82500 dollars, and you feel like you're about to hit the jackpot. 125x Leverage: The profit is even more astonishing, reaching 125000 dollars, with total assets nearing 137500 dollars. This is simply the pinnacle of life!
Liquidation Risk: Under 10x leverage, a 10% price drop triggers liquidation. What about 75x leverage? A drop of 1.33% is enough to wipe you out, and with 125x leverage, an unfavorable fluctuation of just 0.8% could cause your investment to go down the drain. Psychological Pressure: The stress from high leverage is no joke; even small price fluctuations can make your heart race and keep you awake at night. High Costs: Large positions mean higher trading fees and financing costs, especially when holding overnight, as money flows out like water.
Start Small: If you're a beginner or have a low risk tolerance, it's best to start with 10x or lower leverage. Set Stop-Loss Orders: Don’t blindly wait to lose money; use stop-loss orders to automatically close unfavorable trades and limit losses. This is a wise move. Risk Management: Ensure that the risk of each trade does not exceed 1-2% of your total capital, so you can ensure you keep making money. Monitor Liquidation Levels: Always pay attention to market dynamics and understand under what price fluctuations your position may face liquidation risk, so you can stay informed.
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