Leverage (Margin Trading)
Borrowing funds to trade with a larger position than your own capital would allow.
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trading
Explained Simply
Leverage lets you multiply your exposure. With 10x leverage, $1,000 controls a $10,000 position. If the price moves 5% in your favor, you make 50% profit. But if it moves 5% against you, you lose 50%. At 10x, a ~10% adverse move liquidates your entire position. Leverage is offered by exchanges like Binance, Bybit, and Kraken. It's the fastest way to lose money in crypto and is strongly discouraged for beginners.
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