So i am dabbling into trading again and i have a question about leverage. i was wondering if you start out with 100 dollars starting balance and you use 10 leverage and you manage to blow your account, are you liable to pay the full 1000 dollars that leverage gave you? Or you do just lose your initial starting balance?. I am not sure how this works please clear this up for me thanks.
You'll lose that $100 that you deposited if you're having a high leverage and that's the way to be liquidated quickly but I think with 10, that's still manageable. If you're just coming back as you trade, I advice you to stay first in the spot.
It's okay to try some pinch with leverage but don't start with a high one.
Have a test and see if you're for the leverage trading, otherwise no one will stop you to go in the spot trading.