Leverage – Trading with ‘leverage’ is a way of multiplying your profits when trading, though it obviously works the on loss as well. On some exchanges, it’s possible to place an order with leverage. This means you can place your buy or sell order with a multiplication of your own capital. For example: you have 1 Bitcoin and you place a buy order of 1 Bitcoin with 10x leverage. This results in a buy order of 10 Bitcoin, meaning you borrow 9 Bitcoin. If the Bitcoin rises in value and you consequently close the order, you’ll make more profit than you would have without leverage.
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