Leverage trading amplifies profits and losses. Here's how it works: $100 at 10x controls $1000. If the trade gains 1%, the profit is $10, but if it loses 1%, the loss is also $10. This means traders can make bigger gains, but also face bigger losses. Leverage trading requires careful risk management. For example, using $100 at 10x leverage, a 10% gain would be $100, but a 10% loss would be $100. Traders must understand leverage to use it effectively. #Leverage #Trading #RiskManagement