@leers

Leverage trading allows traders to borrow funds to increase their position size, which can amplify both profits and losses. While this can lead to larger market movements, it also introduces greater risk. If the market moves against leveraged positions, it can trigger margin calls and liquidations, causing rapid price fluctuations. In highly volatile markets like crypto, leverage can exacerbate price swings, making the market more prone to extreme volatility. A high level of leverage often leads to a domino effect, further intensifying instability.

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