🚀 Want to maximize your trading profits? Leverage on Bybit allows you to multiply your earnings, but if used incorrectly, it can quickly wipe out your account.
📌 What you’ll learn:
✔️ What is leverage and how does it work?
✔️ How to choose the right leverage: 2x, 5x, 10x, 50x?
✔️ How to avoid liquidation and manage risks?
✔️ Common mistakes traders make when using leverage.
💡 Spoiler: The higher the leverage, the higher the potential profit – but also the higher the risk!
📌 What Is Leverage?
🔹 Leverage allows traders to borrow funds from the exchange to open larger positions than their actual account balance.
📌 Example:
✔️ No leverage (1x): You have $100, you can trade $100.
✔️ With 10x leverage: You have $100, but you can open a trade worth $1,000.
✔️ With 50x leverage: You have $100, but you can trade $5,000.
🔥 The more leverage you use, the higher your profit potential – but also the faster you can lose money!
📌 How to Choose the Right Leverage?
🔹 2x–5x → For beginners. Lower risks, slower but steady profit growth.
🔹 10x–20x → For experienced traders. Balanced risk-to-reward ratio.
🔹 50x–100x → For professionals only. High risk of liquidation.
📌 Tip: If you’re new to leveraged trading, start with 2x–5x to avoid wiping out your account!
🔥 What leverage do you use? Share in the comments!
📌 How to Open a Leveraged Trade on Bybit?
🔹 Go to “Trade” → “Futures”.
🔹 Select a trading pair (e.g., BTC/USDT).
🔹 Choose cross margin or isolated margin mode.
🔹 Set your leverage (e.g., 5x, 10x, 20x).
🔹 Select long (buy) or short (sell).
🔹 Set stop-loss and take-profit levels.
🔹 Confirm – your leveraged trade is now active!
📌 Leverage Modes:
✔️ Isolated Margin – Limits risk to just the amount in the trade.
✔️ Cross Margin – Uses your entire balance as collateral (higher risk).
💡 For beginners, isolated margin is the safer option!
📌 How to Avoid Liquidation When Using Leverage?
🔥 Liquidation means losing your entire position if the price moves against you.
🔹 Use lower leverage (higher leverage increases liquidation risk).
🔹 Always set a stop-loss (protects you from big losses).
🔹 Don’t risk your entire balance (use only 5–10% of your funds per trade).
🔹 Monitor your margin level (if it drops below 100%, you’ll be liquidated).
📌 Example:
✔️ With 2x leverage – Price must drop 50% for liquidation.
✔️ With 10x leverage – A 10% price drop wipes out your position.
✔️ With 50x leverage – A 2% price move = liquidation!
💡 The higher the leverage, the closer the liquidation price!
🚨 Common Mistakes When Trading with Leverage
❌ Using too much leverage (50x–100x) – Leads to quick liquidation.
❌ Not setting a stop-loss – The market can move against you instantly.
❌ Risking the entire account balance – Always manage your risk wisely.
❌ Trading without a strategy – Leverage requires precise risk management.
📌 Tip: Start with 2x–5x leverage and always use stop-loss orders!
🔥 Have you ever been liquidated? Share your experience in the comments!
🎁 Bonus! Get a Reward for Trading with Leverage
💰 Earn up to $500 in bonuses for active trading on Bybit!
✔️ Sign up using our link → YOUR_REFERRAL_LINK
✔️ Open leveraged trades and receive exclusive bonuses.
✔️ Lower fees and VIP rewards for active traders!
📌 The more you trade, the bigger the rewards! 🚀
💡 Conclusion
Leverage is a powerful tool, but if used incorrectly, it can wipe out your balance.
🔥 What leverage do you use most often? Let’s discuss in the comments!
