Yes, you said it right

it provides you the opportunity to make huge profits if the market is going in your favor, but if it is going against you then you will also get to lose a huge amount of money.

Leverage is a double edge sword. Without any experience and understanding of the market, it may backfire and wipe out all capital in a short period of time.

I think there is some mistake

If I have 12,000 USDT in STEEM and I want to open a long position as a trader using leverage of 10x, it means I will have to deposit 1,200 USDT as collateral first.

Please check.

Thanks for sharing, keep writing!