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

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Leverage is very important for new traders. To know this we first need to know about leverage. Leverage means for you to understand, suppose you have 10 dollars, you buy bitcoins with that 10 dollars. Then you see that Bitcoin has gone up by 1 percent, then your profit here will be that 1%. Now you think if you had 100 dollars here and if you bought BTC with that 100 dollars then now you would have 10% profit. Now the problem is that you currently have no more dollars. Now basically all the leveraged trading platforms out there basically give you loans. For example, you have 10 dollars and you take 10X leverage. Through this, the exchanger will give you another 90 dollars as a loan.

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Then your original balance will be $100. Now if you buy bitcoin with 100 dollars, then if bitcoin is up 1 percent, here your profit will be 1 dollar. And if Bitcoin goes up to 10% here then your profit here will be $10. Similarly, if Bitcoin goes down by one percent here, your loss will be $1%. And this 1% dollar will be deducted from your main balance. And if you go long or shot here, if the US comes up against you by 10%, (this percentage of course depends on your leverage) what percentage means how many x's you took. For example, I have taken 10% leverage and if the market comes to 10% at 10% leverage, then your position will be liquidated. And the $10 you have will be gone. This means you will not have any dollars left to continue the position.

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And those who gave you the loan to make a profit, no matter if you make a profit of 300 dollars, 200 dollars, 500 dollars, 1000 dollars with this dollar, there is no problem, but no one will give you money to lose. If you can profit here then of course when you close your position you will pay back their loan and you will remove your profile. If you lose their money, who will pay this money? So they will close your position on their behalf. That means you won't have any more dollars to lose. Because of this leverage, new traders can learn to take risks, which will increase 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.