High-leverage trading allows investors to control larger positions than their actual capital would normally permit. It involves borrowing funds to increase potential returns on investments. For example, with 10x leverage, a trader can open a position worth $10,000 with only $1,000 of their own money.This practice can amplify both profits and losses. A small price movement in favor of the trade can lead to significant gains. However, adverse price movements can result in substantial losses, potentially exceeding the initial investment.Margin requirements play a crucial role in high-leverage trading. Traders must maintain a minimum balance to keep their positions open. If the market moves against them, their account could be liquidated to cover losses, leaving them with little to no capital.Due to its high risk, this trading strategy is often recommended for experienced investors who understand market volatility. Newcomers should approach high-leverage trading with caution, as it can lead to quick losses if not managed properly.