@gnocchi

Leverage trades amplify both gains and losses, which can significantly increase market volatility. When traders use leverage, they borrow funds to take larger positions, magnifying the effect of price movements. If the market moves against them, it can trigger margin calls, leading to forced liquidations, which in turn cause sharp price swings. These cascading liquidations often result in sudden, large market movements, making the crypto market even more volatile. As more traders use leverage, these effects become more pronounced, especially in smaller or less liquid markets.

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