#CreatorPad
⚠️ Important Notice:
- Leverage amplifies profits, but it also amplifies losses!
- If the price drops by just 5%, you could lose your entire capital (10 dollars), because the loss is calculated on the total trading amount (200 dollars).
- Trading with leverage requires high expertise and precise risk management.
The liquidation price is not fixed; it changes according to:
- Changes in margin balance
- Fees and interests
- Type of account
- Market movements
- Adding or withdrawing funds from margin
Example (simplified):
- If you start a trade with 100 dollars at 10x leverage and the liquidation price is 9000 (for example, for Bitcoin).
- After 3 days, 2 dollars were deducted for fees and interest.
- Now your actual capital is 98 dollars, so the liquidation point is adjusted closer (for example, it becomes 9010).
- The longer you hold the position, the closer the liquidation becomes.
Advice:
- Always monitor your margin balance and the fees/interests paid.
- Use stop-loss orders.
- Do not use high leverage unless you are fully aware of its risks.
