Using high leverage : why wouldn't this work ?

Hi CC

I've never used leverage, but I had a thought about seemingly low risk way of using it that makes use of the highest possible leverage I can find which sounds counter intuitive I know !

Just wondering why it wouldn't work, so here we go !

1. Find exchange with 1000x leverage (would work with 100x too)
2. Go long for $10 in BTC (am I correct in thinking all I can lose is $10 ?) On 1000x leverage, so every 1c it goes up I gain $10 and I get liquidated if it goes down 1c
3. Wait for BTC to change in value 1c to liquidate me or go up $1 at which point I'll cash out $10
4. I'm assuming that price changes will be more than 1c per tick, but won't my exposure be $10 when I lose, but no limit on the upside cap ?

Eg it goes down 1c in a tick so I get liquidated and lose my $10 It goes down 5c in a tick so I get liquidated and lose my $10 not the $50 (or will the exchange contact me and say I owe them $40 more and they'll freeze my account until I pay that ? Which would kill this plan, and sounds reasonable of them to do so when I type this) It goes up 1c in a tick so I gain $10 It goes up 5c in a tick so I gain $50 and cash out and restaje $10 banking $40

1. Win or lose, go back to and repeat step 2

I'm assuming BTC is so volatile that noise on the price will either trigger my liquidation or my sell for 1000x profit on a pretty much 50/50 basis but the times I win will be more than 1c change in price

So what am I missing ?

There must be a reason this wouldn't work, do exchanges want more margin for higher leverage multipliers for example ?

Any feedback would be appreciated

Cheers

Raj