how leverage works binance

Binance, a cryptocurrency exchange platform, has seen a surge in popularity in recent years. As an exchange platform, Binance helps users to trade and buy cryptocurrencies such as Bitcoin, Ethereum, and more. To do this, Binance uses leverage, which means that the platform takes advantage of the leverage effect. The leverage effect refers to the fact that when you borrow money, you have a higher risk of making a loss than if you had the money yourself. This is because you are borrowing the money, which means that the platform is taking on a greater risk than you are. In other words, the platform is using the leverage effect to increase its profits. To achieve this, Binance uses margin trading, which means that it uses the leverage effect to make more profits by borrowing money from its users. This allows the platform to make more profits and earn more in fees.