Can anyone explain about leverage and how does it work in this platform?
boredo The Morpher Guide has got you covered: 👉 Understanding Leverage 👈
boredo .... its just a simple math and business for example if you have 10 usd and you open trade with 6x levarage then you have a power of 60 usd trade .... if the price increase by 10% then your portfolio increase by 16 usd but if the trade decarese by 10% then your portfolio shows only 4 usd .... if the trade decrease by 15 % you loose everything and vice versa.
kaillee Thanks for the answer. But if it is decreased by 15%, that is 9 usd, then I would still have 1 usd left right, and not lose everything right?
boredo You're right.
According to the above example, your position would be closed automatically in case of a 16,67% loss.
This procedure is also described in the Understanding Leverage chapter of the Morpher Guide:
Negative Balance Protection:
If you have a balance of 100 tokens and use it all on a trade with maximum leverage (10), then your position will close automatically in the instance of a 10% loss. This protects you from going in debt, by losing more than the value of your account. Furthermore, any position that decreases 100% will close automatically.
boredo yes according to the calculation ...... i am giving a only simple example .... you calculate own your levarge amount and risk