How are you? By Allah's grace, I'm doing very well. Today we briefly discuss leverage. Leverage is very important for new traders, to know it well we need to know about leverage. For you to understand, leverage means suppose you have 50 dollars, then you buy bitcoins with 50 dollars.

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Then you see in crypto market that bitcoin is up like 1 percent then here your profit will be 1%. So now it may come to mind that if you had 500 dollars here and if you bought BTC with that 500 dollars, you would have 10% profit. So more money to invest but the problem is you don't have any more dollars. Now if you want you can discuss there, all the leverage trading platforms out there. They basically give loans to traders, like you have 50 dollars and you take 1X leverage, and you want to invest 500 dollars, then the exchanger will give you 450 dollars as a loan, because you have the remaining 50 dollars.

Then the original balance you will have is $500. Now you buy bitcoin with 500 dollars, then you see that bitcoin is up 1 percent, in that case your profit will be 5 dollars and if bitcoin is up 10%, then here your profit will be 50 dollars. Similarly if bitcoin is down by one percent then your loss will be 1% dollar and this 1% dollar will be deducted from your main balance, but if you trade long or shot here and the market goes against you by 10% then you will have 10% loss. . This percentage however depends on your leverage i.e. how much percentage means how much x you have taken.

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I am saying for example suppose you are holding 50% leverage and if the market comes to 50% at 50% leverage then your position will be Liquidated and you will not have $50 which means you will not have any remaining dollars. , to continue your position and those who gave you the loan will take it back. But if you are able to trade with loans from them and make profit then they will take a percentage from your profit. No matter what profit you make with their dollars, no problem here but they won't pay you to lose. Because if you lose their money then who will pay the money. Anyone can use this leverage.

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.