What happens if the market moves against my leveraged position?

When the market moves against your leveraged position, your losses are amplified. For example, if you use 10x leverage and the asset drops 10%, you lose your entire investment. If losses continue, your position faces liquidation—the exchange automatically closes it to prevent you owing money. Liquidation happens when your account equity falls below the maintenance margin requirement, typically 5-10% depending on the exchange. You lose any remaining funds in that position. To protect yourself, use stop-loss orders to exit before liquidation, start with low leverage (2-3x), and only risk capital you can afford to lose. Always understand your exchange's liquidation price before trading leveraged positions.