A lot of people who are just getting started ask me: Does 10x leverage mean you earn 10 times as much? Today, I’ll explain it in plain English.
【The basics】Leverage means the exchange lends you money to open a position. If you have 100U of your own money and use 10x leverage, you’re actually controlling a
1000U position. If the price rises by 1%, you earn 10% on your principal; conversely,
A 1% drop means a 10% loss on your principal—注意, losses are calculated based on the total position you borrowed to open.
【The cost】With 10x leverage, if the price moves against you by about 10%, your principal is wiped out. This is called liquidation. It doesn’t mean
you only lose everything after a 10% drop; a drop of about 10% is enough to wipe it all out (the exact price also depends on the margin ratio).
Leverage doesn’t amplify your win rate—it amplifies volatility. Get the direction right, and it helps you make money faster; get it wrong, and it speeds up
your exit. A tool isn’t good or bad; it depends on whether you use it as a tool, not as a way to gamble.
[Beginner tip] Start with 2–3x leverage to get a feel for the volatility. Build stop-loss discipline into muscle memory before you scale up.
What do you think? Share your experience in the comments.