Pro lessonTrading Terminology · 5/53 min read

Leverage, margin and liquidation: a warning

What leverage, margin and liquidation mean, why leveraged trading is high risk for beginners, and why DUKOIN practice does not use leverage.

You will often see adverts for "100x" trading. This lesson explains what leverage means so that you understand the risk, not so that you use it. Leverage is one of the fastest ways beginners lose money.

Leverage means trading with borrowed money to control a bigger position than your own funds allow. With 10x leverage, 1,000 USD of your own money controls a 10,000 USD position.

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Education, not investment advice. Crypto prices can fall sharply and most retail traders lose money. Practice in DUKOIN uses virtual USD with no real value.