Trading with a bigger position than your own money. At 20x, 100 USDT controls a 2,000 USDT position. 💰
Profits and losses are both amplified:
• Price moves 1% in your favor: +20% 🟢
• Price moves 1% against you: -20% 🔴
What is liquidation?
When your losses eat up your margin, the exchange automatically closes your position and you lose the whole margin. 💥
Example (20x):
• Margin: 100 USDT, Position: 2,000 USDT
• A move of only ~5% against you gets you liquidated
• BTC can easily move 5% in a day! 📉
Cross vs Isolated:
• Isolated: you only risk the margin of that one position
• Cross: your entire futures balance is at risk, which is more dangerous ⚠️
Beginner tips:
✅ Stick to 2-3x at most
✅ Use isolated margin
✅ Always set a Stop Loss
✅ Practice with small amounts or a demo account
This is not financial advice. You can lose your entire futures balance.