0
0
0
0
1
2
3
$0
Using borrowed money to increase exposure, which magnifies both gains and losses.
Leverage means using borrowed money to make a bigger investment than your own cash allows. It multiplies gains, but it multiplies losses just as much, and losses can exceed what you put in.
With 10x leverage, a 5% rise turns into a 50% gain, but a 10% drop can wipe out your whole stake.
Most crypto and trading blow-ups come from leverage. Before using it, know exactly at what price you would be liquidated.
Try it: Liquidation Calculator