🌏🌏🌏Appears to be a warning to traders,🌏🌏

New to crypto, about the dangers of using leverage (margin) when trading futures.

The author emphasizes that even experienced traders should exercise caution when using leverage, as it can amplify losses and contribute to market volatility.

The author highlights the risks of leverage, which allows traders to borrow funds to trade with a larger position size (e.g., $500 with 10X leverage = $5,000 trading power).

If the market drops by 10%, a trader using leverage risks having their position liquidated, triggering a series of sell orders to cover the exchange's margin.

This can create a chain reaction of sell orders, exacerbating price declines and contributing to market instability.

The author is urging traders to be cautious and aware of these risks, especially in the crypto market, which is known for its volatility.

The author is explaining the potential consequences of high leverage in the cryptocurrency market, particularly in the context of Ethereum (ETH).

If many traders (e.g., 100,000) use high leverage (e.g., 10X) on ETH, a small price drop (e.g., 10%) can trigger a chain reaction of liquidations, leading to a significant price plummet.

This can result in flash crashes, where prices drop rapidly (15-20% or more) within minutes due to mass liquidations.

The author notes that this risk is similar to challenges seen in traditional finance, such as with banks and hedge funds.

The author is highlighting the potential risks and consequences of excessive leverage in the cryptocurrency market, emphasizing the importance of prudent risk management and caution.

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