A small price move can create a surprisingly big ROI. đ
Hereâs a simple example from a $KORU position:
Entry: 20.76
Exit: 20.68
Price move: only about 0.38%
But with 20Ă leverage, the position showed around 6.11% ROI.
Why?
Leverage increases the size of your position relative to your margin.
So a small market movement can produce a much larger percentage gain on your margin.
â ïž But remember: leverage works both ways.
A small move against you can also increase your losses quickly.
Small movement â small risk.
If youâre learning Binance Futures, understanding this before using leverage is extremely important.
If this helped you understand something new, a little support would be greatly appreciated â€ïž
#Binance #Futures #TradingEducation #Crypto #KORU
Hereâs a simple example from a $KORU position:
Entry: 20.76
Exit: 20.68
Price move: only about 0.38%
But with 20Ă leverage, the position showed around 6.11% ROI.
Why?
Leverage increases the size of your position relative to your margin.
So a small market movement can produce a much larger percentage gain on your margin.
â ïž But remember: leverage works both ways.
A small move against you can also increase your losses quickly.
Small movement â small risk.
If youâre learning Binance Futures, understanding this before using leverage is extremely important.
If this helped you understand something new, a little support would be greatly appreciated â€ïž
#Binance #Futures #TradingEducation #Crypto #KORU