A margin call happens when your broker warns that your trading account no longer has enough margin to cover open positions. It’s the broker’s way of saying: “Add funds now, or your trades will be closed.” Margin calls usually strike…
Those who have tried day trading in any type of market might wonder if they would do better if they use leverage or if it’s just a myth that margin-traded accounts increase profits straight away. It can be difficult to…
Short selling is always done with borrowed money — and that’s exactly why leverage plays such a big role. When you short a crypto coin, a stock, or a forex pair, you’re not just betting on a price drop, you’re…
The liquidation price is the exact price level where your broker or exchange will automatically close your position to prevent further losses. In other words, it’s the point where your margin can no longer cover the risk. At Leverage.Trading, we…
If you are a complete beginner on the topic of leveraged trading and want to learn what a leveraged position is you have landed on the right page. After reading this article, you will have learned all the basic concepts…
Yes, you can lose more money than you invest with leverage, depending on how your broker is set up. That’s why understanding margin rules and protections is the single most important step before placing a leveraged trade. The catch? Most…
Choosing the optimal leverage for crypto trading isn’t as simple as picking a random ratio like 10x, 50x, or 100x. The right leverage depends on your trading style, the volatility of the coin, and how much risk you can realistically…
There are so many questions on the topic of how leverage affects losses in forex, crypto, and stocks. What happens when you lose on a trade on margin, do you have to pay back the credit when you lose, can…
Why do brokers offer leverage to retail traders, how do they profit from it, and what’s in it for you as a trader? It’s not just generosity or risk-taking. Leverage increases trade sizes, which means more spreads or fees for…
Understanding what 1:100 leverage means isn’t just about memorizing a ratio, it’s about grasping how a powerful tool can transform both your profit potential and your risk exposure. In trading terms, 1:100 (or 100x) leverage means controlling a position one…