Mastering Leverage: Risk vs. Reward
Leverage allows you to trade with more money than you have. With 10x leverage, a $1,000 account trades like $10,000.
- The Upside: A 5% price move = 50% profit.
- The Downside: A 5% price move (against you) = Liquidation (Game Over).
When to Use Leverage
- Low Volatility Pairs: BTC/USDT moves slowly, so 3x-5x leverage can make it meaningful.
- High Confidence Setups: When our AI Confidence Score is >90%, slightly higher leverage is justified.
- Hedging: Shorting with leverage to protect your long term holders.
When to AVOID Leverage
- Low Market Cap Coins: They can drop 30% in minutes. You will be liquidated instantly.
- News Events: "Wicks" can trigger liquidations before price goes your way.
- Emotional Trading: Revenge trading with leverage is the fastest way to zero.
The Safety Check
TradingMaster AI automatically warns you if your leverage exceeds safe limits based on the asset's Volatility.
Rule of Thumb: If you can't sleep, your leverage is too high.
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