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RE: AskLeo - Do You Trade With Leverage?

in LeoFinance3 years ago

That's the basic idea of leveraging.

If you take a leveraged long position and the price crashes, you might run out of collateral and get margin called. Your position could be auto-liquidated and you'd suffer a bigger loss than without leverage. In traditional markets, your broker might ask you to increase your collateral to avoid getting your position liquidated.

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