# New to Leverage Trading? Here's What 5x Actually Means

Ever wondered how some traders seem to turn $100 into huge gains? They're using leverage. But before you get excited, let's break down what 5x leverage *really* does.

**The Simple Version:**
5x leverage = trading with 5x the capital you actually own. Have $100? You can control a $500 position. Sounds amazing, right? Well, it cuts both ways.

**Real Math (Not Hype):**
Let's say you put $100 into AWE/USDT at 5x:

**Win scenario:** Price jumps 10%
- Normal trade: +$10 profit (10%)
- With 5x: +$50 profit (50%)
- Your $100 just became $150 ✓

**Lose scenario:** Price drops 10%
- Normal trade: -$10 loss
- With 5x: -$50 loss (you lost half your money)
- Plus? You're now closer to liquidation ⚠️

**The Catch:**
Leverage amplifies *everything*. Not just wins—losses too. Hit the wrong direction and you don't just lose your profit, you can wipe out your entire $100 in seconds. That's liquidation.

**Real Talk:**
If you're still learning how markets work, leverage is like handing the keys to someone who just got their license. Technically possible, but statistically not smart. Master normal trading first. Then—*and only then*—think about leverage with money you can afford to lose.