How Leverage Works with Liquidation:

Leverage = how much borrowed money you’re using compared to your margin.

Higher leverage = closer liquidation price.

👉 Example with $100:

10× leverage → Position size = $1,000.

Liquidation if price moves ~10% against you.

20× leverage → Position size = $2,000.

Liquidation if price moves ~5% against you.

100× leverage → Position size = $10,000.

Liquidation if price moves ~1% against you.

So ⚠️ at 100×, even a tiny 1% move against you wipes the position.

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