⚡ Leverage & Margin Trading Explained

📌 Margin Trading

Trading with borrowed funds from the exchange.

✅ You contribute a portion of your own money and borrow the rest to open larger positions.

👉 Example: With $100 of your own and borrowing $100, you trade with $200 in total.

📌 Leverage

Leverage multiplies your trading power.

2x leverage = 2 times your capital

5x leverage = 5 times your capital

🚀 Bigger profit opportunities… but also bigger risks!

👉 Example: Using 5x leverage on BTC — if price rises 2%, your profit is 10%. But if it falls 2%, your loss is also 10%! ⚠️

📌 Risk Management is Essential

🔥 High leverage = quicker gains but also quicker losses.

✅ Always set stop-losses.

✅ Begin with small positions and lower leverage.

⚠️ Note: Margin & leverage trading are designed for experienced traders. Learn the basics first before entering this high-risk, high-reward space.

$BTC $XRP $SOL

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