Risk
What is Leverage?
Using borrowed money or financial instruments to amplify your investment
Full Explanation
Leverage magnifies both gains and losses. 2x leverage means if the market goes up 10%, you gain 20%. But if it drops 10%, you lose 20%. Enough leverage can wipe out your entire account.
Pro Tip
Leverage is a double-edged sword. Professionals use it carefully. Beginners should avoid it.
Related Risk Terms
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