

What is leveraged trading? Guide to the selection and risk management of leverage multiples (Guidelines for the currency circle)
Jul 24, 2025 am 06:09 AMLeveraged trading is an operational method of amplifying positions by borrowing funds to increase returns potential, but it is accompanied by high risks. 1. Its essence is to conduct amplified trading based on margin. For example, 1,000 USDT can control 10,000 USDT positions under 10 times leverage; 2. Mainstream platforms include OKX, Binance, HTX and Gate.io; 3. In terms of leverage multiple selection, beginners should control it within 3 times, intermediate users can use 5-10 times and set stop loss, high-speed leverage (more than 20 times) is only for experienced people; 4. Risk management requires: set a stop loss of 5%-10%, single position does not exceed 10% of total assets, batches of positions, priority use of position-by-position mode, real-time monitoring of the capital utilization rate avoids exceeding 80%; 5. Platform comparison shows that OKX is suitable for most users, Binance has strong liquidity, suitable for high-frequency trading, HTX tends to be a stable strategy, Gate.io has comprehensive functions and a risk warning module is suitable for novices. Investors should operate cautiously based on their own risk tolerance to ensure the safety of their funds.
1. Basic concepts of leveraged trading
1. Leveraged trading is essentially borrowing funds to amplify positions, and is often used in contract or spot leverage operations in crypto asset markets such as BTC, ETH, etc.
2. The user uses a certain proportion of his own funds as margin and obtains the enlarged transaction amount based on the selected leverage multiple.
3. For example, using 10x leverage, a 1,000 USDT principal can control positions worth USDT.
2. Recommended leverage entrances for mainstream platforms
1. Ouyi OKX: Support up to 125 times leverage, entrance: After logging in, select "Trade" → "Contract" or "Leverage", the interface is clear and beginner-friendly. Official website:
2. Binance: Provides a variety of leverage products, including spot leverage and perpetual contracts, up to 125 times. Official website:
3. Huobi HTX: supports leveraged trading of mainstream currencies, with a maximum leverage of 20 times, suitable for medium and low-risk users. Official website:
4. Gate.io gate: Flexible leverage options, providing beginner mode and professional mode, entrance: select "Leveraged ETF" or "Contract". Official website:
3. Leverage multiple selection guide
1. Beginners recommend that they control it within 3 times, and give priority to ensuring the safety of the principal and avoid triggering forced closing of positions.
2. Intermediate users can use 5-10 times leverage according to market fluctuations, but a stop loss line must be set.
3. High-speed leverage (more than 20 times) is suitable for high-frequency short-term users or have rich experience, and they need to keep an eye on the market at all times.
4. Risk management suggestions
1. Set a stop-profit and stop loss: A reasonable stop-loss ratio (such as 5%-10%) should be set before each leverage transaction.
2. Control positions: Avoid heavy positions in a single currency. It is recommended that each position be controlled within 10% of the total assets.
3. Build positions in batches: Do not enter the market at one time, especially in high-volatility markets, invest in stages.
4. Use the position-by-position model: safer than full position, and losses are limited to funds in a single contract account.
5. Real-time monitoring of the fund rate: The fund utilization rate provided by the platform is an important indicator for measuring risks, and you need to be extra vigilant if it exceeds 80%.
5. Platform risk comparison analysis
1. OKX: It has a friendly interface, flexible leverage, and supports U- and coin-price, which is suitable for most users.
2. Binance: Strong liquidity, low fees, suitable for frequent traders.
3. HTX: The upper limit of leverage is moderate, and it is more inclined to users with stable operation strategies.
4. Gate.io: It has comprehensive functions and provides risk warning modules, suitable for novices to try.
The above is the detailed content of What is leveraged trading? Guide to the selection and risk management of leverage multiples (Guidelines for the currency circle). For more information, please follow other related articles on the PHP Chinese website!

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