Day 28 – What is Leverage? (High Risk Concept)

⚠️ Leverage can multiply profits… but also wipe your account.

Leverage means borrowing money to trade a larger position than your actual capital.

Example:

You have $100
Using 10x leverage, you can trade $1,000

How it works:
Profit is multiplied
Loss is also multiplied

If the market moves against you, your position can be liquidated (closed automatically), and you may lose your funds.

Why beginners should be careful:
Very high risk
Requires strong experience
Small mistakes = big losses


Beginner Advice:

Avoid leverage in the beginning.
First master spot trading and risk management.

Key Takeaway:
👉 Leverage = high reward + high risk (not for beginners).

Save this post — understanding leverage can save your money.

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