Leverage allows opening a position larger than the capital you actually have available.
Example:
• Available capital: 100 USDT
• Leverage: 10x
• Position size: 1,000 USDT
Advantages:
• Allows greater market exposure with less capital.
• Higher potential profits.
Risks:
• Losses are also multiplied.
• The higher the leverage, the smaller the margin for error.
• Increases liquidation risk.
Recommendation: Use low leverage if you are starting.