Topic: Bitcoin leverage trading (Read 1288 times)
In all honesty, I would say you are months away from being able to comfortably or profitably trade on leverage. But, I am biased as we don't offer leverage at gebbit.com
1 - that is up to you to decide, however 10x leverage is probably too high for a volatile currency like bitcoin. I personally recommend bitfinex however they only allow 3.3x leverage
2 - your profit would be $500 and your total equity would be $1,500, you would be able to purchase an additional 25 BTC or withdraw $1,500 worth of bitcoin (fiat)
3 - your profit would be -$2,500. Your position would have been closed by the exchange long before the exchange rate got to this level. It would likely have been forcibly closed out around the time when you have ~$300 worth of equity
2 - your profit would be $500 and your total equity would be $1,500, you would be able to purchase an additional 25 BTC or withdraw $1,500 worth of bitcoin (fiat)
3 - your profit would be -$2,500. Your position would have been closed by the exchange long before the exchange rate got to this level. It would likely have been forcibly closed out around the time when you have ~$300 worth of equity
No one that can explain this to me ?
I have some questions about leverage trading.
1. Which is the best site for bit coin trading with leverage ?
2. Let's say that I deposit 1000 $ in an bit coin exchange and leverage them with 10 x to 10 000 $. At this time of my purchase the BTC/USD is 200 $. So with 10 000 $ I can get 50 Bitcoins. Let's assume that the next day the rate is 210 $. If I sell this 50 coins for 210 $ . Does this means that I get 10 500 $.
How much is my profit in this case ? How much do I need to return for the leverage service ?
3. Another scenario, this time we play with the idea that the price is going down. Let's say I deposit 1000 $ and leverage them to 10 000 $.At the time of my purchase the rate is 200 $ ( so I can buy 50 coins ) , and the second day the rate is 150 $. That means that if I sell them I'll only get 7500 $.
How much is my loss here ?
I read that the exchange can close my account if the loss is high. When exactly to they do that ? I mean the bitcoins are fluctuating a lot, sometimes the price can go down with 10 $ for a couple of minutes and then return back to normal. Can they close my account even though I haven't sold the coins ? I mean if I haven't sold the coins, then there's theoretical no loss made.
1. Which is the best site for bit coin trading with leverage ?
2. Let's say that I deposit 1000 $ in an bit coin exchange and leverage them with 10 x to 10 000 $. At this time of my purchase the BTC/USD is 200 $. So with 10 000 $ I can get 50 Bitcoins. Let's assume that the next day the rate is 210 $. If I sell this 50 coins for 210 $ . Does this means that I get 10 500 $.
How much is my profit in this case ? How much do I need to return for the leverage service ?
3. Another scenario, this time we play with the idea that the price is going down. Let's say I deposit 1000 $ and leverage them to 10 000 $.At the time of my purchase the rate is 200 $ ( so I can buy 50 coins ) , and the second day the rate is 150 $. That means that if I sell them I'll only get 7500 $.
How much is my loss here ?
I read that the exchange can close my account if the loss is high. When exactly to they do that ? I mean the bitcoins are fluctuating a lot, sometimes the price can go down with 10 $ for a couple of minutes and then return back to normal. Can they close my account even though I haven't sold the coins ? I mean if I haven't sold the coins, then there's theoretical no loss made.
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