Many people initially focus solely on spot trading, but as they gain some experience, interest in leverage trading (investing with additional leverage) begins to increase due to market volatility and the potential for higher profits.
By learning more about futures trading and the platform known as Binance, a person can establish their own investment strategy based on their experiences.
The appeal of leverage trading is that a person can open a large position with a small amount of money. However, this can also increase risk, so caution is advised.
Those using Binance for the first time often struggle with futures trading and setting proper leverage, which can lead to significant losses. When leverage is too high, even a small change in price can cause a position to be liquidated.
On Binance, leverage can range from 1x to 150x. Not all cryptocurrencies have sufficient leverage, but ones like Bitcoin and Ethereum can go up to 150x.
Initially, it may seem that high leverage will increase profits, but experience shows that high leverage does not guarantee high returns. Gradually, people learn that as leverage increases, so does the risk, making risk management crucial.
The best leverage for me is usually between 5x and 10x. When the market is very volatile, it's not good to go beyond 10x. But when the market is moving smoothly, a slightly higher leverage can increase profits. In a market full of volatility, lower leverage (≤5x) is preferable.
On the Binance futures page, the leverage power can easily change. Select the amount you want, click the leverage button at the top of the page, then use the slider to adjust to your desired leverage.
Each position has its own leverage. This is why it is important to assess and adjust it for every investment.
The most important thing is the liquidation price. As leverage increases, the liquidation price gets closer to the initial investment. If you use 100x, a mere 1% change can trigger liquidation. However, with 5x or 10x, the power of funds will make your investment more secure.
The good strategy is to reduce leverage during market volatility; during a stronger trend, increase it slightly. This method allows you to respond with the market, but with stability.
Trading fees are also important. In every trade, you pay twice — when you buy and when you sell. The 20% referral discount that Binance offers through a referral code will help you save a lot of money.
✨ Click here to receive a 20% discount on Binance trading fees
Those who already have a Binance account can receive this 20% discount if they meet these 5 conditions.
The person who accepted the call has a Binance account already.
The person who accepted the call has not yet accepted a call before.
Your account has not traded or used Binance products for 180 days.
When the required friend connects, the verification page will display.
When the invited person clicks [Bind Now], the position becomes active.
In conclusion, good leverage management on Binance allows you to make stable and beneficial investments. Beginners should start with 5x–10x and gradually learn. Monitoring your leverage in every trade will be key to reducing risk and investing confidently.