Highest Leverage

Leverage trading is a technique that allows you to trade with a more prominent position than your available capital. It involves borrowing funds to increase your position size, potentially increasing profits and risks. Understanding leverage trading is crucial for trading on Binance Leveraged Tokens, as it allows you to manage your risks and avoid losses that exceed your initial investment.

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Floating leverage can change under certain conditions, one of which is based on the trading volume. Volume-based floating leverage typically decreases along with the increase in trading volume.

Say you initially trade with 1:200 leverage. When your trading volume amounts to more than $3 million, the leverage would be automatically changed to 1:100. The adjustment can apply to the next level of volume increase, depending on how your broker sets the rule. It is important to note that the change of margin requirement that is brought by the new leverage would only apply to positions opened after the adjustment So, you don't have to worry about increased margin in your previous trades.

Continue Reading at What is Floating Leverage in Forex Trading?

Leverage refers to the practice of performing financial transactions using money that has been borrowed from a broker. The unique thing is that you don't have to repay the loan, as leverage would automatically decrease your margin ratio.

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Trading on high leverage could be compared to borrowing money from banks. By using leverage, we 'borrow' money from brokers interest-free. 1:1 Leverage means you don't borrow any money. If you have USD 10,000 and you purchase 10,000, it just means that you use all of your money. But if you use leverage, you use more than what you have.

Of course, having more money gives us more bravery to make risky decision, but also makes us more vulnerable to the dangers. What seems like small lose could turn out bigger and unaffordable. That is not good. Just like borrowing money from banks must be done carefully, so is borrowing money from brokers.

Continue Reading at Pros And Cons Of High Leverage In Forex Trading