Understanding Leverage in Trading 🚨



Leverage is one of the most powerful yet dangerous tools in trading.

If you’re using 1:100 leverage, it means that for every $1 you put into the market, you’re controlling $100 worth of assets.

The benefit is that you can start with a small account and trade larger positions.

❌ The risk: Losses are also magnified, just a small price movement against you can wipe out your account.

Pro Tip: Never let leverage trick you into risking more than 1–2% of your account per trade, smart traders use leverage as a tool for efficiency, not greed.

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