# Leverage Option

Leverage is an important aspect of trading on the Nova Trade platform. It enables traders to open larger positions with a lower initial investment, increasing their potential profits or losses. Leverage is available at Nova Trade for certain trading pairs and can be as high as 100x.

Assume a trader wishes to invest in a cryptocurrency trading pair with a $1,000 value. With 100x leverage, the trader would only need to put up $10 of their own money, with Nova Trade providing the remaining $990. This increases both the potential gains and the potential losses from the investment.

It is important to note, however, that high leverage trading is not suitable for all traders and carries significant risks. While high leverage can result in large profits, it can also result in large losses, particularly in volatile market conditions. As a result, we encourage our users to trade responsibly by considering their risk tolerance and developing appropriate trading strategies.

Nova Trade provides a margin call system that automatically liquidates a trader's position if the margin falls below a certain level to help mitigate risk. This ensures that the trader's losses do not exceed his or her initial investment.

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