What is leverage in trading I touched on this topic, but h | SVIATOSLAV GUSEV

What is leverage in trading

I touched on this topic, but here I will tell you in detail: leverage is a tool that allows traders to increase potential profit and loss by using borrowed funds.

With leverage, you contribute a fraction of the total value of a position. For example, you put in 10% - you can control a position that is 10 times the amount invested.

Risks are increased by a factor of 10, but profit is also increased by a factor of 10. 10% drop in an asset — you lose everything, 10% rise — you have earned 100% of the amount.

Use it wisely and at the beginning don't use more than 2 leverage.