Leverage

Leverage means trading with borrowed money to control a bigger position than your own capital would allow. With 10x leverage, ₹10,000 of margin controls a ₹1,00,000 position. A 5% move in your favour earns 50% on your margin, but a 5% move against you loses 50%, and a 10% move can wipe it out entirely.

Crypto exchanges offer leverage through margin trading and futures, sometimes up to 100x or more. Such high leverage means even normal daily volatility can liquidate a position within minutes. Leveraged traders also pay ongoing costs, such as interest on margin loans or funding rates on perpetuals.

Leverage is the single biggest reason retail traders lose money in crypto. If you use it at all, keep it low, use stop-losses, size positions so that a liquidation would not hurt you badly, and understand how the exchange calculates margin and liquidation prices. Never use leverage on money you cannot afford to lose.