A post on X went viral where a trader lost $1 millions as a result of the market crash that just happened.

From what the person wrote, they were on 3x leverage long position on $Pepe. They might have assumed taking that low leverage will save them but there is something about how you utilize your margin.

If your margin is and leverage is low, you reduce your risk ratio by less than 1% but your returns in profit will be very low .

High margin and low leverage means your risk ratio will go up.

High leverage and low margin will equally reduce your risk ratio but returns will be low .

We need to learn how balance this.

Also if we are on a very risky trade where there is high price volatility. We should endeavour to keep our eyes on our trades. I have been liquidated several times because didn't monitor my trades.

unfortunately for the person in the viral X post, they slept off thinking everything is going to fine..

lets trade with caution..

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