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Leveraged trading in cryptocurrency allows traders to gain significant exposure to digital assets by using borrowed funds, amplifying both potential gains and risks. This guide delves into every aspect of leveraged trading, ensuring that both novices and seasoned traders have a well-rounded understanding of this complex yet rewarding practice.
Leveraged trading, sometimes referred to as margin trading, involves borrowing funds to increase potential returns on investment. It's a strategy that can lead to high profits but also significant losses, making it essential for traders to understand its intricacies before diving in.