5x or 10x Leverage on Binance Futures? The Math Reveals the Truth!
If you trade Binance futures, make sure you understand this! Using $1,000 at 10x leverage versus $2,000 at 5x may look the same, but there’s a big difference! Remember this: both strategies give you a $10,000 position, but your ability to withstand risk is completely different! Let’s do the math! First, let’s look at how much you can make. Say you use $1,000 at 10x leverage, or $2,000 at 5x leverage. In either case, your position is worth $10,000. If the coin’s price goes up 1%, you’d theoretically make $100 either way. If the coin’s price drops 1%, you’d theoretically lose $100 either way. So don’t assume that using 10x leverage will always make you more than using 5x!