When we trade stocks, we use 10 times leverage. Is this approach advisable? Next, I will tell you what situations can be brought about by using 10 times leverage. 1. What 10 times leverage can bring

To understand 10 times leverage and whether such an approach is advisable, we must first understand what 10 times leverage can bring. Using a leverage of 10 times, if you make money, you can directly double it without earning 10 points. This way you can make money very quickly. I said you originally only had 10,000 yuan, but after you used a leverage of 1:10, you had 110,000 yuan. If you earn 10 points, you can earn 11,000, which is directly doubled. But if you lose money, it is also very fierce. With only 10,000 yuan and a leverage of 1:10, you only need to lose less than 10 points before your position is liquidated. And normally, if you lose 80% of your principal, your position will be forced to be liquidated. It means that you can close the position if the adjustment is less than 8 points. 2. 10x leverage is not advisable

Through the above analysis, we can see that using 10x leverage can make money very quickly, but the probability of liquidation is also scary. You can make money countless times, and you can double it 10 times without any problem. But you cannot accept losing 10 points at a time. Even if you make 1 million from 10,000, as long as you lose 10 points once, you will lose everything. Therefore, 10 times leverage is completely undesirable. It is simply too dangerous. There is simply no way to bear a small loss. 3. It is also dangerous to divide a lot of positions

Using a leverage of 1:10, even if you divide the position, you will still face great dangers. If you give him 5 votes, the probability of losing 8 points is quite high. It only takes one major market downturn to basically wipe you out. In a volatile market, there will be rising and falling bands, and the falling band in this volatile market can also kill you.

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