CRYPTO GLOSSARY · FINANCE

What is Leverage?

Borrowed funds to amplify trading positions.

📖 Full Definition

Leverage allows traders to control larger positions with smaller capital by borrowing funds. While leverage can amplify gains, it equally amplifies losses and can lead to liquidation.

💡 Example

Trading Bitcoin with 10x leverage means a 10% price move results in 100% profit or loss.

🔗 Related Terms

Liquidation

Forced closing of leveraged positions.

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