margin and leverage are not the same thing
people use these words interchangeably.
they're not the same. here's the difference:
margin is the collateral you put up to open a trade. it's your skin in the game.
leverage is the multiplier that controls how large your position is relative to that margin.
the trap: high leverage shrinks your margin buffer. a 1% move on 100x leverage = 100% of your margin gone.
one is how much you risk.
the other is how fast you lose it.
$BTC $TSLAB
people use these words interchangeably.
they're not the same. here's the difference:
margin is the collateral you put up to open a trade. it's your skin in the game.
leverage is the multiplier that controls how large your position is relative to that margin.
the trap: high leverage shrinks your margin buffer. a 1% move on 100x leverage = 100% of your margin gone.
one is how much you risk.
the other is how fast you lose it.
$BTC $TSLAB