What is Leverage?
Leverage, borrowed funds that increase position size. 10× leverage multiplies both profit and loss by 10. High leverage means high liquidation risk.
Example
$100 at 10× = a $1,000 position. A −10% move wipes out the margin.
Leverage, borrowed funds that increase position size. 10× leverage multiplies both profit and loss by 10. High leverage means high liquidation risk.
$100 at 10× = a $1,000 position. A −10% move wipes out the margin.
Educational material by MarketNerve — not financial advice.