// Definition
Leverage lets you open a position larger than your own money by borrowing from the exchange, which multiplies both profits and losses.
Explained simply
With 10x leverage, 100 dollars controls a 1,000 dollar position. A 1 percent move in your favour becomes a 10 percent gain on your money, but a 1 percent move against you becomes a 10 percent loss.
High leverage leaves very little room for normal price swings and can lead to liquidation quickly.
Tip
Leverage does not change your edge, it only changes your risk. Beginners are safest with low or no leverage.
For education only, not financial advice. Trading is risky and you can lose money.