How are you? By Allah's grace, I'm doing very well. Today, the topic I want to discuss is about leverage.

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Leverage is very important for new traders, and to know it we need to know about leverage first. Leverage means for you to understand, suppose you have 20 dollars, now you buy some bitcoins with those 20 dollars, then you see that bitcoin has gone up like 1 percent, then your profit here will be that 1%. Now you think to yourself that if you had $200 here and if you bought BTC with that $200 then you would have made 10% profit. Now the problem is you don't have any more dollars. All the leveraged trading platforms that exist now basically lend you, for example, you have $20 and you take tenx leverage, and the exchange will lend you $180.

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Then your original balance will be 200 dollars and now if you buy bitcoin with 200 dollars, then if bitcoin goes up by 1 percent then your profit will be 2 dollars, and if bitcoin goes up to 10% here the profit will be 20 dollars. Similarly if Bitcoin goes down by one percent here, then your loss will be 1% dollar and this 1% dollar will be deducted from your main balance and if the market goes against you by 10% after you trade long or short here (this percentage Of course it depends on your leverage) what percentage means how much X you have taken. I am saying for example I hold 20% leverage and if the market comes to 20% at 20% leverage then your position will be liquidated and the $20 you have will be gone which means you will have no more dollars, the position to continue.

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And whoever gave you the loan to make a profit, you can make a profit of 300 dollars, 400 dollars, 600 dollars, 800 dollars with this dollar, there is no problem here, but no one will give you money like this to lose and if you If you can profit here, you must pay back their loan when you close your position and remove your profile. The reason is that if you lose their money, who will pay this money? So they will close your position on their behalf which means you will have no more dollars to lose. Because of this leverage, new traders can learn to take risks better, which will multiply their ignorance in the cryptomarket.

Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.