#TradingSafety Understanding the Dangers of High Leverage While leverage can increase profit potential, it also magnifies risk. Many beginners misuse leverage, turning small losses into large account drawdowns. Always use leverage wisely — start low and understand how margin requirements affect your capital. A leverage of 1:10 or 1:20 is safer for beginners than 1:500. Proper risk control and awareness prevent emotional trading and protect your funds from sudden market swings.