How does leverage trading work on Bybit?

Leverage trading on Bybit operates by allowing traders to borrow funds to increase their potential investment size. For example, using 10x leverage, a trader can open a position worth ten times the value of their actual account balance. This amplification of buying power enables traders to enhance potential profits from relatively small price movements. However, it also increases the risk of magnified losses and can lead to rapid account liquidation if the market moves unfavorably. To manage these risks, Bybit implements measures such as margin requirements and liquidation protocols. Traders must understand both the rewards and dangers of using leverage and should employ prudent risk management tactics to protect their capital.