1. What is the fundamental danger of using maximum leverage (like 50x or 100x)?
🔑: It places the liquidation price dangerously close to the entry, making a tiny dip catastrophic.

2. What psychological temptation is amplified when using leverage?
🔑: The amplification of potential wins and the amplification of potential losses.

3. What is the catastrophic event that occurs if a trader ignores a margin call and the price moves against them?
🔑: The exchange liquidates the position automatically, and the trader loses their entire initial margin.

4. The disciplined use of a stop-loss is the difference between a small, manageable loss and what kind of outcome?
🔑: A catastrophic margin call.

5. The video concludes that a trader must control their leverage, or it will do what?
🔑: It will end up controlling you.

6. What common psychological error is associated with the feeling that the price "has to bounce" after a drop?
🔑: Believing emotion over logic.

7. What risk management technique acts as a "shock absorber" when the market gets jumpy?
🔑: Keeping a buffer or free margin on hand.

8. What is the purpose of the maintenance margin level set by the exchange?
🔑: It is the minimum amount of capital required to keep a leveraged position open.

9. The video advises that a trader should set their own exit before the market forces one on them by always using what tool?
🔑: Stop-losses.

10. What is the core action a trader takes when using margin?
🔑: Borrowing money from the exchange to multiply position size.

11. In margin trading, the money a trader puts up as collateral or insurance for the exchange is called what?
🔑: The margin.

12. What is the exchange doing when it sends a trader an infamous "margin call"?
🔑: Telling the trader to top up their account to maintain the position or close the trade.