Leverage

Leverage trading enables you to, using a relatively small margin, open a position of a larger amount. In other words, the exchange is lending you some BTC so that you can place a larger order, which can be very beneficial for traders. The word ‘leverage’ means the proportion of the amount of your asset in an order. For example, if you use 1BTC as your margin and choose 10x leverage, then your order is worth 10BTC. Exchanges like Bybit offers a maximum of 100x leverage for traders and it is adjustable.

Remember that using leverage trading in cryptocurrency is highly profitable as well as risky because of its volatile nature. It can amplify your profits and loss because higher leverage will lead to a closer liquidation price, therefore, risk control is definitely needed.