I'm still new, and I am still working out how various trading aspects work. If I am right, leverage is "borrowing" money to invest in a market when you think it is down, and when it is up you extract the money, pay back the original capital, and the "profit" is then yours.
I think Leveraging is very risky. What if you leveraged at the wrong time (e.g. Sat PM, just before Sun AM drop this weekend)?
I totally agree with you that the market is volatile enough not to have to worry about leveraging. I'm glad that I don't leverage as my "bot" purchased some crypto at spot price on Sat PM before the drop - but at least I didn't end up loosing more than I actually have !
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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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