Leverage
In short
Leverage means moving a larger position with borrowed capital: at 10x your stake controls only one tenth of the position — gains and losses act tenfold.
A mere 10% adverse move wipes out your stake at 10x. Professionals use small leverage with fixed stop-losses; high leverage is statistically a fast lane to total loss.
What leverage makes sense for beginners?
Honest answer: none. If you must, stay at 2-3x with a strict stop-loss.
Related terms
Information, not investment advice. More of this? The newsletter.