Leverage

Leverage involves borrowing a certain amount of the money needed to invest in something, in the case of the business world, a stock. In terms of cryptocurrency trading, leverage allows a trader to put up a fraction of the trade’s total value. But the trade can be leveraged by up to 100 times, which means profits and losses are hugely amplified. It's important to note that while leverage can magnify profits, it can also amplify losses. High leverage, particularly where the borrowed money exceeds owned assets, comes with a high level of risk.