Leverage

Leverage is a trading strategy that involves using borrowed funds to open a position larger than what your own capital would allow. For example, with 10x leverage, a trader can control a position worth 10 times their initial deposit. While leverage amplifies potential profits, it equally amplifies potential losses. If the market moves against a leveraged position, the trader risks losing their entire deposit (liquidation). Leverage is commonly offered on crypto exchanges for futures and margin trading.