1x trading means trading without leverage. In this type of trading, the trader uses only their own funds to enter into a trade. Leverage multiplies a trader’s buying power, allowing them to control a larger position with a smaller amount of capital. With 1x trading, there is no leverage involved, so the trader is not borrowing any additional funds to make their trade.
One key advantage of 1x trading is that it is less risky compared to leveraged trading. Since the trader is only using their own funds, they are not at risk of losing more than what they initially invested. This can be beneficial for those who prefer a more conservative approach to trading.
However, the downside of 1x trading is that potential profits are limited to the amount of capital the trader has available. With leverage, traders have the opportunity to amplify their profits, but this also comes with increased risk. Overall, 1x trading is a straightforward and less risky option for those who want to trade without leveraging their positions.
