Many traders believe that having low leverage is synonymous with safety. Today I am going to show you with my own account why that is the most dangerous lie in trading.
These are the data I obtained by opening 3 Long trades with $BERA
In these three trades, I was using one dollar to open a position of $5.1, which is the minimum allowed, and these are the results:
Conclusion 1: the highest risk trade was the one opened with the lowest leverage: X10, besides being the one that allows the least margin for maneuver because it is impossible to open a second position here, and you are using 50% of your capital.
Conclusion 2: The trade with X20 has the riskiest liquidation point; in its favor, it should be mentioned that unlike the first, it gives us margin to open a second position.
Conclusion 3: The trade with X75, despite having a significantly higher level of leverage, leaves the liquidation point further away, blocks less of your real capital, and allows for more positions to be opened.
Final verdict: while the leverage of X10 blocks your money, that of X75 frees it, giving you more strategic possibilities to trade, and while the expert trader sweats cold because they committed half of their capital with X10, the one who understands mathematics is opening more positions with their available funds and generating profits in trades that will serve as support to increase their initial capital faster and more securely.
Do not be afraid of the number after the X; be afraid of not understanding basic mathematics.
Link to the test video: https://app.binance.com/uni-qr/cvid/290535094491234?r=C3KN993B&l=en-US&uco=sAvkbaQcC9QKdKHEVn-NBw&uc=app_square_share_link&us=copylink
Disclaimer: Includes third-party opinions. No advice. Binance AI may be used without guarantee.See T&Cs.
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