Leverage
Borrowing to open a position larger than own funds.
Leverage X multiplies gains and losses. Long 10x with $1000 = trade $10k. Price +5% = +$500 (+50% capital). -10% = liquidation. Most profitable traders use <5x. Retail uses 50-125x = 90% lose all fast.
In plain words
You borrow capital from the exchange to trade bigger than your own funds. 10x leverage = trade $10k with $1k. Gains and losses multiply the same. Price moves 10% against you = you lose it all. Higher leverage = smaller move needed to liquidate.
Example
Trader opens 100x long BTC at $90k with $100. Liquidation at ~$89.1k (-1%). BTC dips 1%, leading to liquidation and loss of $100. Price hits $100k (+11%) → no leverage = $11 profit. Safer 5x: $55 profit, liquidation at -20%.
Also known as: leverage, dźwignia, margin