MehrKand
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MehrKand
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Portfolio
What is leverage in futures? 📈📊
On the exchange
Binance
in futures trading, leverage is used.
Leverage is when the exchange amplifies the size of your trade.
In other words, you’re trading with more than you actually have.
A simple example
You have $10.
You use leverage of x10.
Your trade will act like you have $100.
10$ × 10 = $100
If the price rises
Let’s say the price goes up by 10%.
Without leverage:
10$ → $11
Profit = $1
With leverage of x10:
100$ → $110
Profit = $10
Leverage boosts your profits.
But it also ramps up the risk
If the price moves against your trade, your loss increases too.
If the price drops by around 10%,
your position could get liquidated.
What is liquidation?
Liquidation is when the exchange automatically closes your trade to prevent your losses from exceeding your deposit.
For example:
You have $10
The price moves against your trade
Your position gets closed
You lose $10.
Important point
After liquidation:
✔ no debt appears
✔ your account doesn’t get blocked
✔ no more money gets deducted
You simply lost money from that trade.
Example
You had:
$50
You opened a futures trade for $10.
The trade got liquidated.
Now you have:
$40
The remaining funds stay in your account and don’t just disappear.
On the exchange
Binance
in futures trading, leverage is used.
Leverage is when the exchange amplifies the size of your trade.
In other words, you’re trading with more than you actually have.
A simple example
You have $10.
You use leverage of x10.
Your trade will act like you have $100.
10$ × 10 = $100
If the price rises
Let’s say the price goes up by 10%.
Without leverage:
10$ → $11
Profit = $1
With leverage of x10:
100$ → $110
Profit = $10
Leverage boosts your profits.
But it also ramps up the risk
If the price moves against your trade, your loss increases too.
If the price drops by around 10%,
your position could get liquidated.
What is liquidation?
Liquidation is when the exchange automatically closes your trade to prevent your losses from exceeding your deposit.
For example:
You have $10
The price moves against your trade
Your position gets closed
You lose $10.
Important point
After liquidation:
✔ no debt appears
✔ your account doesn’t get blocked
✔ no more money gets deducted
You simply lost money from that trade.
Example
You had:
$50
You opened a futures trade for $10.
The trade got liquidated.
Now you have:
$40
The remaining funds stay in your account and don’t just disappear.
Myths about crypto
1. Cryptocurrency is only for criminals
Yes, it is used in illegal schemes, but the same can be said about cash. The majority of transactions in networks like Bitcoin and Ethereum are legal transactions and investments.
2. Crypto is completely anonymous
In fact, most blockchains are public. All transactions are visible; wallets are just not always directly linked to the owner's name.
3. Bitcoin is not backed by anything — which means it is worthless
Its value is formed by demand and trust, just like gold or fiat currencies. Bitcoin has a limited supply — only 21 million coins.
4. Crypto is a bubble that will burst soon
The market has experienced crashes, but the blockchain technology continues to evolve, and major companies and funds are integrating it into their products.
5. It’s too late to invest in crypto
The market is still developing. New projects, DeFi platforms, and layer two solutions are emerging.
6. Cryptocurrencies are banned everywhere
Regulation varies: in some places restrictions are strict, while in others crypto is legal and regulated as an asset.
7. To understand crypto, you need to be a programmer
Basic principles can be understood without a technical education. Today there are convenient...
1. Cryptocurrency is only for criminals
Yes, it is used in illegal schemes, but the same can be said about cash. The majority of transactions in networks like Bitcoin and Ethereum are legal transactions and investments.
2. Crypto is completely anonymous
In fact, most blockchains are public. All transactions are visible; wallets are just not always directly linked to the owner's name.
3. Bitcoin is not backed by anything — which means it is worthless
Its value is formed by demand and trust, just like gold or fiat currencies. Bitcoin has a limited supply — only 21 million coins.
4. Crypto is a bubble that will burst soon
The market has experienced crashes, but the blockchain technology continues to evolve, and major companies and funds are integrating it into their products.
5. It’s too late to invest in crypto
The market is still developing. New projects, DeFi platforms, and layer two solutions are emerging.
6. Cryptocurrencies are banned everywhere
Regulation varies: in some places restrictions are strict, while in others crypto is legal and regulated as an asset.
7. To understand crypto, you need to be a programmer
Basic principles can be understood without a technical education. Today there are convenient...
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