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Leverage trading on Bybit allows traders to amplify their positions and maximize potential profits. However, trading with leverage also comes with significant risks. In this guide, we will explain how to use leverage on Bybit safely while managing risk effectively.

Understanding Leverage on Bybit

Leverage is a feature that enables traders to open positions larger than their initial capital by borrowing funds. On Bybit, you can use leverage up to 100x for certain trading pairs, allowing for significant market exposure.

For example, if you have $100 and use 10x leverage, you can trade with a position worth $1,000.

Key Leverage Options on Bybit

1. Spot Trading – No leverage involved.
2. Futures Trading – Supports leverage up to 100x.
3. Margin Trading – Uses borrowed funds to increase trading power.

Steps to Use Leverage on Bybit

1. Select the Right Trading Market

• Go to Bybit and choose between USDT Perpetual, Inverse Perpetual, or Margin Trading.
• Select a trading pair (e.g., BTC/USDT, ETH/USDT).

2. Adjust Leverage Settings

• Click on the Leverage Slider in the trading interface.
• Adjust leverage from 1x to 100x depending on your risk tolerance.
• Confirm your leverage setting before placing an order.

3. Choose Your Order Type

• Limit Order – Executes at a specified price.
• Market Order – Executes immediately at the current market price.
• Stop-Loss & Take-Profit Orders – Helps manage risk effectively.

4. Monitor Your Position

• Track margin usage in the Position Tab.
• Keep an eye on the Liquidation Price, which is where your position gets liquidated if the market moves against you.

Risk Management Tips for Using Leverage

1. Use Low Leverage

• Beginners should start with 3x to 5x leverage instead of high leverage like 50x or 100x.

2. Set Stop-Loss Orders

• Always set a stop-loss to limit potential losses.
• Recommended stop-loss is 2-3% of your total account balance.

3. Avoid Overleveraging

• Higher leverage increases both potential profits and risks.
• Overleveraging can lead to liquidation, wiping out your entire position.

4. Manage Your Margin Balance

• Ensure you have sufficient margin balance to avoid forced liquidation.
• Maintain a healthy margin ratio above 50%.

5. Diversify Your Trades

• Don’t put all your funds into a single leveraged position.
• Spread your investments across different assets and strategies.

6. Stay Updated with Market Trends

• Leverage trading is highly volatile; stay informed with market news, technical analysis, and economic events.

Final Thoughts

Leverage can be a powerful tool when used correctly, but it also comes with significant risks. By following proper risk management strategies, setting stop-losses, and avoiding excessive leverage, you can trade on Bybit safely and minimize losses.

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