:What is the Role of leverage in futures trading

in the name of god:what is the Role of leverage in futures trading? Leverage in    futures trading?Introduction

Leverage in futures trading, leverage is an  introductory trading tool. wich is  used with the purpose of increasing the return in on investment. Actually when a trader uses leverage he will not need to invest his entire capital in one transactions

?What is leverage in digital currency

If you operate in the digital currency market, you probably thought about this during the market correction wish you had more  money 💵 to invest, At these times you can go for leveraged trading. Leverage in digital currency is one of the financial tools,the profit and loss of leveraged trading is much higher than Spot trading.

That’s why only people who have enough knowledge about technical analysis they go to use leverage

?What is leverage in digital currency
?What is the Role of leverage in futures trading

:Leverage in digital currency

Leverage is a  trading tool that can increase the efficiency of digital currency trading, leverage transaction are used when you want to trade digital currencies.

Actually these traders are mostly used in hourly traders. In these transaction the user can indirectly borrow the necessary capital from the exchange and start trading using it. Cryptocurrency exchanges typically have 2x to 125x leverage, this means that they can  increase the user’s capital from 2 to 125 times.

This style is used when the user does not want to involve All his  capital in one  transaction or does not have the necessary capital to enter into the transaction at all.

:For example

For example suppose the current price of Ethereum digital currency is 2000$ And you only have 200$ initial capital, IF you buy Ethereum normally, you only one tenth (0.1)of  Ethereum  but if you  leverage digital currency with a ratio of 1 to 10 our use 10x, you can buy Ethereum 2000$And  own a complete Ethereum.

In this example you had fund 200$ you have taken a loan 1800$ now if price of Ethereum,  increases by 10% you can sell a purchased Ethereum And  pay back the  loan and exchange Fee , but the entire profit of the transaction be longs to you

:Leverage in futures trading

Leverage in futures trading means using the capital and credit provided by the  exchange to trade assets  including digital currencies.

These tool increases our trading leverage And  it allows us to  Buy and sell with more than our initial cold.

The amount of leverage in TWO conventional relative forms offered as  1 to 5 and multiples like 10x presented.for example  if your account balance is 100$ And you  intend to open that  trading  position worth 1000$.there for you will  have the ability to trade more

?What is futures trading

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