MR-DHIYA

#WriteToEarnUpgrade Let’s explain simply and with numbers how profits and losses are calculated when using 10x leverage in trading (for example, on a platform like Binance Futures).

🧮 Basic Example

🔹 Data:

Capital (Balance): 100 dollars

Leverage: 10x

Position size = 100 × 10 = 1000 dollars

This means you are trading as if you own 1000 dollars, even though you actually only own 100.

📈 Profit Case

Suppose you bought a coin priced at 1 dollar, and the price rose to 1.02 dollars (+2%).

The actual change in price = +2%

But because you are using 10x leverage,
The actual profit = 2% × 10 = 20% of your capital

🔸 Profit in dollars = 100 × 20% = 20 dollars
This means your balance now = 120 dollars

📉 Loss Case

Suppose the same trade, but the price dropped from 1 dollar to 0.98 dollars (i.e. -2%).

The actual change in price = -2%

With 10x leverage → Loss = -2% × 10 = -20% of the capital

🔹 Loss in dollars = 100 × 20% = 20 dollars
Your balance now = 80 dollars

⚠️ Liquidation

The higher the leverage, the less margin there is for the price to move against you before the position is liquidated.

With 10x leverage, if the price moves against you by about -10% only,
The position is liquidated and you lose almost all your capital.

With 50x leverage, a move of -2% against you is enough to lose everything.

💡 Conclusion:

CasePrice ChangeLeverageProfit/Loss on CapitalIncrease 1%10x+10%Increase 5%10x+50%Decrease 1%10x-10%Decrease 10%10xLiquidation and Loss

$BNB

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