What is the meaning of account leverage in the context of cryptocurrency trading?

1 answers

• Dec 15, 2021 · 3 years ago
  At BYDFi, we offer account leverage for cryptocurrency trading. Leverage allows traders to potentially increase their profits by using borrowed funds. For example, if a trader has an account leverage of 5:1, they can trade with 5 times the amount of their initial investment. This means that a $1,000 investment can control $5,000 worth of cryptocurrency. However, it's important to note that leverage also increases the risk of losses. Traders should carefully consider their risk tolerance and use leverage responsibly. It's always a good idea to start with lower leverage ratios and gradually increase them as you gain more experience and confidence in your trading strategy.
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