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Topic: Binance levered down tokens risk (Read 100 times)

hero member
Activity: 1638
Merit: 518
April 20, 2021, 03:05:13 AM
#5
of course no liquidation , but the worst case , it will have no value .
To put it in other words if I invest e.g. 100€ in the SXPDOWN is there ANY risk that i would have to put more money in to close that position or am I putting at stake only my initially invested 100€?
u dont need to put another money on it, but if the SXP going up, the price of your token continue to decrease , and of course the value of your investement getting down, since SXPdown its same like shorting SXP.
full member
Activity: 854
Merit: 101
April 19, 2021, 05:36:43 PM
#4
Hi everyone!

I´m new here so not sure if this is the right place for my question.

I have been looking at the Binance levered tokens (BLVT) for some time, particularly the DOWN tokens.

My doubt is what does "no risk of liquitiation" mean?

To put it in other words if I invest e.g. 100€ in the SXPDOWN is there ANY risk that i would have to put more money in to close that position or am I putting at stake only my initially invested 100€?


Maybe the answer is obvious but I´m a buy and hold investor and I don´t have any trading expirience, but I would give these tokens a shot instead of buying my weekly lottery ticket. Maybe I get luckier here Smiley.

OFFTOPIC:
Is there no movil version of this forum??

If you don't have any experience yet, better for you to do some research about this thing before making a decision
if you will buy or not. And of course any coin that your gonna try to buy to invest is always have risk. In short, liquidation for me based on
my understanding is only apply if the price goes down were you need to liquidate it for sometime.
legendary
Activity: 2674
Merit: 1226
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April 18, 2021, 07:04:41 AM
#3
And big answer to your big question. No, there is no such thing as "no risk of liquidation". You will liquidate on leveraged trading if the balance goes below the triggered threshold. I don't know how any tokens can claim such thing, but maybe they mean no risk of total liquidation? In which case a manual stop loss does the same thing.
legendary
Activity: 2366
Merit: 1272
Heisenberg
April 18, 2021, 04:16:00 AM
#2
Binance Leveraged Token positions just like FTX Leveraged Token positions are supposed to be kept open for a longtime or in a sideways market. Your account will still get towards zero which is pretty much the same as liquidation

Leveraged tokens are only good if traded on a short term downward or upward trending market like today's market dump.
Get yourself acquainted with leveraged tokens first before trading in them or you might end up getting disappointed - https://academy.binance.com/en/articles/a-beginners-guide-to-binance-leveraged-tokens-blvt



The forum has no mobile version
newbie
Activity: 1
Merit: 0
April 18, 2021, 03:47:22 AM
#1
Hi everyone!

I´m new here so not sure if this is the right place for my question.

I have been looking at the Binance levered tokens (BLVT) for some time, particularly the DOWN tokens.

My doubt is what does "no risk of liquitiation" mean?

To put it in other words if I invest e.g. 100€ in the SXPDOWN is there ANY risk that i would have to put more money in to close that position or am I putting at stake only my initially invested 100€?


Maybe the answer is obvious but I´m a buy and hold investor and I don´t have any trading expirience, but I would give these tokens a shot instead of buying my weekly lottery ticket. Maybe I get luckier here Smiley.

OFFTOPIC:
Is there no movil version of this forum??
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