Leverage: what almost nobody tells beginners
Simplified example (excluding fees): you deposit $100 as margin and open a $1,000 position with 10x leverage.
• Price rises 5% → ~$50 profit (+50% on margin)
• Price falls 5% → ~$50 loss (−50%)
• Price falls ~10% → your margin is depleted and the position may be liquidated
In other words: the market doesn’t need to fall much for you to lose everything.
For beginners:
✔ Practice on a demo account/testnet
✔ Start without leverage (spot) with a small amount
✔ Never use your emergency fund
✔ Decide how much you’re willing to lose BEFORE entering a trade
This is not investment advice. Derivatives carry high risk and are restricted for residents of Brazil.
$BTC $ETH
Simplified example (excluding fees): you deposit $100 as margin and open a $1,000 position with 10x leverage.
• Price rises 5% → ~$50 profit (+50% on margin)
• Price falls 5% → ~$50 loss (−50%)
• Price falls ~10% → your margin is depleted and the position may be liquidated
In other words: the market doesn’t need to fall much for you to lose everything.
For beginners:
✔ Practice on a demo account/testnet
✔ Start without leverage (spot) with a small amount
✔ Never use your emergency fund
✔ Decide how much you’re willing to lose BEFORE entering a trade
This is not investment advice. Derivatives carry high risk and are restricted for residents of Brazil.
$BTC $ETH