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🔍 Why Leverage Doesnt Matters But your Position (Order) Size Does? (No Clickbait) 🎁
👉 While Doing Futures You might have came across terms such as Leverage & Position Sizing.
👉 Most people thinks that higher leverage means higher risk but what decides the Risk is your "Position/Order Size".
✒️ Let's Take an example
👀 Say if you have 1000U
⚡ And you entered a position with 0.3% of total capital i.e., 50x Leverage.
Then your initial margin used will be 3U and your position size will be 150U - - - - - - - - - - - - - - - - - - - - - - - - -
⚡ And suppose u did the same with 100x Leverage.
Opened the position with 150U Order size, then your margin used will be 1.5U (half the margin as compared to 50x)
- - - - - - - - - - - - - - - - - - - - - - - - -
🧑💻 But what remains same is the position/order size...
👍 If you take higher order size (higher percentage of your total capital) your risk will be very higher... leverage doesn't define your risk.
📈 My Suggestion: I suggest use 0.3% of total capital per trade with 50x Leverage in order to see 0 Liquidations On long and on short very far liquidations...
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