Higher leverage does not improve edge. It shortens the distance between a normal drawdown and a forced close.
What leverage actually changes
Leverage multiplies exposure relative to margin. Your P&L and liquidation distance scale with position size, not with how confident the setup feels. Two traders with the same idea and different leverage can have completely different survival curves.
Negative balance and stop-outs
Some brokers advertise negative-balance protection; others apply it differently by jurisdiction and account type. Read the operator terms for your entity. Protection language is not a reason to size recklessly.
A simple rule of thumb
Decide the cash loss you can absorb first, then back into position size. If the platform’s max leverage tempts you past that number, lower leverage or skip the trade.
Margin calls are process failures
Getting margined often means size and correlation were wrong before the market was. Treat it as a risk-system alert, not bad luck to avenge.