Leverage

Leverage denotes a situation when borrowed capital acts as a funding source of an investment. To open a leveraged position, traders have to deposit funds, usually stablecoins. Depending on the leverage size, the initial deposit is magnified and a trader is able to open a bigger position. As a result, expected profits can be times bigger. However, if the opposite happens, losses will be multiplied and if there isn't enough funds to cover the losses, your position will be liquidated. Projects and blockchains related to this category are listed below.