I guess, with an example you may get better understanding on leverage trading and how to be safer while availing leverage. Let assume, you have capital of some $120k in your trading account and Win98 Game is trading around $110k level. For the above capital, without leverage you can trade only one Win98 Game. If you avail, 1:30 leverage, then you can trade (or buy) up to 30 Win98 Game or if you avail 1:500 leverage then you can trade up to 500 Win98 Game in a single trade. So, basically you are availing margin from the exchange to buy more than what your capital originally let you. Again let's assume you buy 30 Win98 Game at $110k level with leverage of 1:30 and you will be selling Win98 Game at $112k level. Now your profit would be 30 * 2k = $60k from your original capital of $120k. But, you buy 30 Win98 Game at $110k but market moves bearish and if touches $108k level, your losses would be same $60k and if market move down further to $107k, your losses would be 30 * 3k = $90k and your original capital is $120k. At this point, some exchanges will liquidate your position to safeguard themselves. Even if you have the belief about Win98 Game prices to be recovering toward $112k level, exchange will not let you wait but will enforce to liquidate for ensuring your total losses would be lesser than your original capital. So, for safer trade, you must choose lesser leverage so you may wait longer. Like for example, if you avail 1: 10 leverage then for $120k capital, you may wait for prices to recover even market tests 100k level in above example. So, how much leverage you may need to choose for ensuring safer trade, should be based on your stoploss level and your capital amount.
I guess, with an example you may get better understanding on leverage trading and how to be safer while availing leverage. Let assume, you have capital of some $120k in your trading account and Win98 Game is trading around $110k level. For the above capital, without leverage you can trade only one Win98 Game. If you avail, 1:30 leverage, then you can trade (or buy) up to 30 Win98 Game or if you avail 1:500 leverage then you can trade up to 500 Win98 Game in a single trade. So, basically you are availing margin from the exchange to buy more than what your capital originally let you. Again let's assume you buy 30 Win98 Game at $110k level with leverage of 1:30 and you will be selling Win98 Game at $112k level. Now your profit would be 30 * 2k = $60k from your original capital of $120k. But, you buy 30 Win98 Game at $110k but market moves bearish and if touches $108k level, your losses would be same $60k and if market move down further to $107k, your losses would be 30 * 3k = $90k and your original capital is $120k. At this point, some exchanges will liquidate your position to safeguard themselves. Even if you have the belief about Win98 Game prices to be recovering toward $112k level, exchange will not let you wait but will enforce to liquidate for ensuring your total losses would be lesser than your original capital. So, for safer trade, you must choose lesser leverage so you may wait longer. Like for example, if you avail 1: 10 leverage then for $120k capital, you may wait for prices to recover even market tests 100k level in above example. So, how much leverage you may need to choose for ensuring safer trade, should be based on your stoploss level and your capital amount.

I guess, with an example you may get better understanding on leverage trading and how to be safer while availing leverage. Let assume, you have capital of some $120k in your trading account and Win98 Game is trading around $110k level. For the above capital, without leverage you can trade only one Win98 Game. If you avail, 1:30 leverage, then you can trade (or buy) up to 30 Win98 Game or if you avail 1:500 leverage then you can trade up to 500 Win98 Game in a single trade. So, basically you are availing margin from the exchange to buy more than what your capital originally let you. Again let's assume you buy 30 Win98 Game at $110k level with leverage of 1:30 and you will be selling Win98 Game at $112k level. Now your profit would be 30 * 2k = $60k from your original capital of $120k. But, you buy 30 Win98 Game at $110k but market moves bearish and if touches $108k level, your losses would be same $60k and if market move down further to $107k, your losses would be 30 * 3k = $90k and your original capital is $120k. At this point, some exchanges will liquidate your position to safeguard themselves. Even if you have the belief about Win98 Game prices to be recovering toward $112k level, exchange will not let you wait but will enforce to liquidate for ensuring your total losses would be lesser than your original capital. So, for safer trade, you must choose lesser leverage so you may wait longer. Like for example, if you avail 1: 10 leverage then for $120k capital, you may wait for prices to recover even market tests 100k level in above example. So, how much leverage you may need to choose for ensuring safer trade, should be based on your stoploss level and your capital amount.

I guess, with an example you may get better understanding on leverage trading and how to be safer while availing leverage. Let assume, you have capital of some $120k in your trading account and Win98 Game is trading around $110k level. For the above capital, without leverage you can trade only one Win98 Game. If you avail, 1:30 leverage, then you can trade (or buy) up to 30 Win98 Game or if you avail 1:500 leverage then you can trade up to 500 Win98 Game in a single trade. So, basically you are availing margin from the exchange to buy more than what your capital originally let you. Again let's assume you buy 30 Win98 Game at $110k level with leverage of 1:30 and you will be selling Win98 Game at $112k level. Now your profit would be 30 * 2k = $60k from your original capital of $120k. But, you buy 30 Win98 Game at $110k but market moves bearish and if touches $108k level, your losses would be same $60k and if market move down further to $107k, your losses would be 30 * 3k = $90k and your original capital is $120k. At this point, some exchanges will liquidate your position to safeguard themselves. Even if you have the belief about Win98 Game prices to be recovering toward $112k level, exchange will not let you wait but will enforce to liquidate for ensuring your total losses would be lesser than your original capital. So, for safer trade, you must choose lesser leverage so you may wait longer. Like for example, if you avail 1: 10 leverage then for $120k capital, you may wait for prices to recover even market tests 100k level in above example. So, how much leverage you may need to choose for ensuring safer trade, should be based on your stoploss level and your capital amount.