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Understanding Leverage and Margin in Crypto Futures Trading
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== How Does Leverage Work in Crypto Futures Trading? == Leverage is a tool that allows traders to amplify their trading positions by borrowing funds from the exchange. For example, with 10x leverage, a $100 investment can control a $1,000 position. While this can significantly increase potential profits, it also magnifies potential losses. Key points about leverage: * **Amplifies gains and losses**: Higher leverage means higher risk. * **Leverage ratios vary**: Exchanges offer different leverage levels, such as 5x, 10x, or even 100x. * **Requires careful risk management**: Over-leveraging can lead to significant losses.
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