Many people think that using higher leverage means making money faster, but they overlook the losses.
This is how I understand it: with the same notional value, the profit or loss amount is the same. If the price moves 1% in the opposite direction, a position worth 10,000 USDT loses about 100 USDT, regardless of the leverage.
Leverage = position notional value divided by the margin used: using 1,000 USDT of margin at 10x leverage gives you a position worth 10,000 USDT.
My approach: Don’t treat high leverage as a way to make back your losses. Increasing leverage after a loss often makes the losses even bigger.
Today’s market: $BTC Current price: 77525.25, 24h +0.5%.
#BTC
This is how I understand it: with the same notional value, the profit or loss amount is the same. If the price moves 1% in the opposite direction, a position worth 10,000 USDT loses about 100 USDT, regardless of the leverage.
Leverage = position notional value divided by the margin used: using 1,000 USDT of margin at 10x leverage gives you a position worth 10,000 USDT.
My approach: Don’t treat high leverage as a way to make back your losses. Increasing leverage after a loss often makes the losses even bigger.
Today’s market: $BTC Current price: 77525.25, 24h +0.5%.
#BTC