How are you? By Allah's grace, I'm doing very well. It is very important for new traders in the crypto market to know about leverage. To know the crypto market well, you need to know about leverage. Suppose you have $1000, then you buy Bitcoin with $1000. Then you see that Bitcoin has pumped like 1 percent, in that case your profit will be 1%. So now you may think that if you had $5000 now and if you had bought Bitcoin with that $5000 equivalent, then you would have made a profit of 10%. To invest more in the market, you need more money. Then you thought of investing in a larger amount but the problem is that you do not have any money. Now you can go where all the leverage trading platforms are. They basically give loans to crypto traders so that a trader can take a large amount of trade. For example, if you have $1,000 and you have taken 10X leverage and you want to invest $5,000, the exchanger will give you a loan of $4,000 because you have the remaining $1,000.

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This percentage will depend on your leverage, i.e. how much percent or how much X leverage you have taken. I will explain with an example, suppose you are holding 50% leverage and if the market moves 50% at 50% leverage, then your position will be liquidated, that is, the $1000 you have will no longer be there. This means that you will not have any dollars to continue your position. And the loan you had taken will be taken back from you. But if you are able to make a profit after trading with the loan, then a percentage of your profit will be taken as the interest on the loan. You can make as much profit as you want with their dollars. But if you lose, the money will be deducted from your main balance. The reason for this is that if you lose the money they gave you, then you will have to pay the money. Everyone, big and small, can use the advantage of this leverage.

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And if you can profit through leverage, then you must pay them the interest on the loan and remove your profile when you close your position. And if you lose their money, you will have to pay this money, so they will close your position, which means you will not have any dollars to lose. For this leverage method, new traders can learn to take risks, which will increase their ignorance even more. Leverage is very risky, you should first understand it well and invest according to your own risk.

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.