How much can I lose if my leverage trade goes against me?

With leverage trading, your losses can exceed your initial investment. If you trade with 10x leverage and the price moves 10% against you, your entire deposit is wiped out through liquidation—when exchanges automatically close your position to prevent owing them money. For example, with $1,000 and 10x leverage, a 10% price drop eliminates your $1,000. Worse, volatile markets can liquidate positions even faster. Some exchanges offer liquidation protection, but it's not guaranteed. The risk grows exponentially with higher leverage ratios. Beginners should start with minimal or no leverage, use stop-loss orders, and never risk money they can't afford to lose.