Reality and expectations are always opposite. This time, I took a hit on leveraged trading. A loss of 734%, starting with only $35 of principal, and in the end, I lost everything. This is the true face of high leverage — small principal, but the loss ratio is terrifying.
Many people think that testing high leverage with a small amount of funds is a safe approach, but that's not the case. Hundredfold or thousandfold leverage amplifies risk exponentially. A wrong judgment in one direction can cause an account to be liquidated within seconds. Today's lesson is — leverage is a double-edged sword; even a small principal appears powerless against high leverage.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
12 Likes
Reward
12
6
Repost
Share
Comment
0/400
NFTArtisanHQ
· 2h ago
ngl the leverage casino never sleeps... geometric loss functions don't care about your conviction thesis
Reply0
DegenMcsleepless
· 6h ago
734% loss? I'm really speechless, this leverage is truly poison.
View OriginalReply0
ApeWithAPlan
· 6h ago
Leverage is really a pitfall; what seems like a guaranteed win can turn around and blow you up in an instant.
View OriginalReply0
FlashLoanKing
· 6h ago
Wow, 734%! This is truly a real leverage slaughterhouse.
View OriginalReply0
GasGuzzler
· 6h ago
Leverage is a gambler's paradise; even with $35, you can lose everything down to your underwear.
View OriginalReply0
LiquidationKing
· 6h ago
Leverage really isn't something humans should play with. I only understood after paying the tuition fee.
Good morning, the market hit hard this morning
Reality and expectations are always opposite. This time, I took a hit on leveraged trading. A loss of 734%, starting with only $35 of principal, and in the end, I lost everything. This is the true face of high leverage — small principal, but the loss ratio is terrifying.
Many people think that testing high leverage with a small amount of funds is a safe approach, but that's not the case. Hundredfold or thousandfold leverage amplifies risk exponentially. A wrong judgment in one direction can cause an account to be liquidated within seconds. Today's lesson is — leverage is a double-edged sword; even a small principal appears powerless against high leverage.