📉💸 Many forget what leverage actually means for liquidation. Let's say you're long 1 BTC at $60,000.
At 10x leverage, your liquidation price is $54,000. That's a $6,000 buffer.
Switch to 20x leverage, your liquidation price jumps to $57,000. Now you only have a $3,000 buffer.
Push it to 50x leverage, and your liquidation price becomes $58,800. A mere $1,200 move against you and poof, margin gone.
The higher your leverage, the closer your liquidation price is to your entry. It's that simple. Understand your risk.
#FuturesTrading #Leverage #Liquidation #RiskManagement #BinanceSquare
At 10x leverage, your liquidation price is $54,000. That's a $6,000 buffer.
Switch to 20x leverage, your liquidation price jumps to $57,000. Now you only have a $3,000 buffer.
Push it to 50x leverage, and your liquidation price becomes $58,800. A mere $1,200 move against you and poof, margin gone.
The higher your leverage, the closer your liquidation price is to your entry. It's that simple. Understand your risk.
#FuturesTrading #Leverage #Liquidation #RiskManagement #BinanceSquare