Nonetheless, leverage is double-edged and can easily magnify losses
Trading CFDs on bitcoin comes with access to high leverage. This means you can gain exposure to a
large position by only depositing the margin while retaining the ability to profit according to
the
actual size of the trade.
For instance, a leverage ratio of 30:1 means you can open a position size that’s 30 times bigger
than your trading account. With this leverage, you would require only 2% of the total value of a
trade to open a position. Nonetheless, leverage is double-edged and can easily magnify losses
the
same way it magnifies the gains. It’s important to use it cautiously.