1. Acceptable Risks in Leveraged Trading
2. The Importance of Risk Management
3. Myths and Realities of Short-Term Trading

Outcome Labs has conducted a new study revealing the risks of leveraged crypto trading. The goal of the study is to help traders avoid total capital loss.

Acceptable Risks in Leveraged Trading

Outcome Labs identified a significant gap in existing research: prior comprehensive studies examining the probability of capital loss in leveraged crypto trading were lacking. Traders using 25x leverage face a 25% chance of losing all their capital within 24 hours.

The Importance of Risk Management

The study found that the probability of losing all capital surges significantly when using leverage over 5x, even across 50 trades. This underscores the critical need for effective risk management strategies in the world of crypto trading.

Myths and Realities of Short-Term Trading

One of the key findings of Outcome Labs' research is debunking the myth that short-term trading can effectively mitigate risks. Data shows that liquidations remain a significant threat even with short-term holding periods.

Outcome Labs' research highlights the importance of risk management in leveraged crypto trading. Traders need to be aware of and account for the risks associated with high leverage to avoid catastrophic losses.