A lot confusion around leverage comes from how it's explained. 🌂
10x vs 100x leverage isn't inherently more or less risky - positioned sizing is what actually matters.
For example: 👇
A $1,000 account using 10x leverage opens a $10,000 position
A $100 account using $100x leverage also opens a $10,000 position
In both cases, the exposure is the same. That means the risk and potential outcomes are the same as well.
The key difference is simply how much capital you're allocating to reach that exposure.
Leverage itself isn't the issue - how you size your positions is what determines risk.
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A lot confusion around leverage comes from how it's explained. 🌂
10x vs 100x leverage isn't inherently more or less risky - positioned sizing is what actually matters.
For example: 👇
A $1,000 account using 10x leverage opens a $10,000 position
A $100 account using $100x leverage also opens a $10,000 position
In both cases, the exposure is the same. That means the risk and potential outcomes are the same as well.
The key difference is simply how much capital you're allocating to reach that exposure.
Leverage itself isn't the issue - how you size your positions is what determines risk.