I'm trying to understand the concept of leverage in the cryptocurrency market, specifically what 1x leverage means. Could someone explain this to me in simple terms?
Leverage in trading refers to the use of borrowed funds to increase the size of a trader's position.
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PulseEclipseThu Dec 26 2024
When using 1x Leverage, a trader is not borrowing any additional funds; they are simply investing their own capital.
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DondaejiDelightfulCharmingSmileWed Dec 25 2024
The risk associated with a 1x Leverage trade is limited to the amount of capital invested by the trader.
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MargheritaWed Dec 25 2024
In contrast, using higher leverage, such as 10x Leverage, amplifies both potential gains and losses.
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ValentinoWed Dec 25 2024
With 10x Leverage, a trader's position size is increased tenfold, meaning that any movement in the market will have a much greater impact on their investment.