Explain the Concept of “Leverage” in Simple Terms for Futures Trading.
Leverage is like a temporary loan provided by the exchange that allows a trader to control a position much larger than the capital they actually possess. If you use 10x leverage, you only need to put up 10% of the position's value as margin.
It amplifies the trading power of your capital, meaning small price movements have a much larger impact on your profit or loss.
