How can leverage amplify gains and losses in OPUSDT futures trading?

How can leverage amplify gains and losses in OPUSDT futures trading?

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Leverage allows traders to open positions larger than their initial capital by borrowing funds from the platform. In OPUSDT futures trading, using leverage can significantly amplify both gains and losses. For example, with 10x leverage, a 1% price movement in your favor could result in a 10% profit. However, the same 1% movement against your position would result in a 10% loss. Platforms like OPUSDT offer various leverage options, enabling traders to increase their exposure to market movements. While leverage can be a powerful tool for boosting profits, it also carries heightened risk, as small market fluctuations can lead to rapid liquidation if the position moves against the trader. To mitigate this risk, it’s crucial to manage leverage carefully, set appropriate stop-loss orders, and ensure there is enough margin in the account to withstand potential losses in volatile market conditions.