Topic: Help with Binance 10x Isolated margin trading (Read 143 times)
If you are new to trading and do not have any experience, then the first rule is that you should never trade on borrowed money. Unless you are professional or good trader with experience then only taking advantage of leverage will help you, else it would be very easy for you to lose this money and right at the beginning itself it will demotivate you and you end up losing lot of money as well.
I also advise not to use too much leverage if your balance is small because leverage can not only make a lot of extra money in trades, it can also wipe out the same amount of money from your balance. 10x leverage is a lot to risk so don't use all of it or some of the smaller multipliers around that number until you get the hang of trading, preferably by trading successfully with smaller amounts, and until you have trading strategies at hand.
Yep. Sad to say but you "screw this up majorly". There is no way to earn by borwing only. You know that 
You borrowed 30 eth, you need to pay back 30 eth (no matter ho much they are worth), you didn't do anything with those 30 eth so there is no profit for you. Just like borowing money from bank and leave them on you bank account without touching them. You should borrow USD (or BTC depend if you want to play on BTC/ETH or USD/ETH), buy eth, than sell ETH with profit, take profit and give back USDT (or BTC).
You borrowed 30 eth, you need to pay back 30 eth (no matter ho much they are worth), you didn't do anything with those 30 eth so there is no profit for you. Just like borowing money from bank and leave them on you bank account without touching them. You should borrow USD (or BTC depend if you want to play on BTC/ETH or USD/ETH), buy eth, than sell ETH with profit, take profit and give back USDT (or BTC).
Hi guys,
Noob here who read up on margin trading and thought he knew what he was doing but is now having some difficulty. I couldn't find much info on this newer Binance 10x isolated feature so hopefully someone here can shed some light for me.
Say I have $1,000 USD, want to purchase ETH/USDT (we'll say it's trading at $200/ETH), and decide to use their isolated margin platform with upto 10x margin.
I go ahead and purchase the 5ETH, and borrow 30 more, holding it in that wallet for several weeks. Now the price has gone upto $220 and I'm ready to sell, but see the site only lists my current profit on the trade as $100 for the 5 ETH, and I still have to pay back 30 ETH plus interest.
Did I screw this up majorly? Was I supposed to borrow USD or BTC initially, use those funds to buy the 30 ETH, where I could now sell them back higher and keep the leftover profit?
Or am I still able to profit on these borrowed coins that have sat here going up the last several weeks? I initially figured the borrowed coins would be tabbed at $200 as well. But now it appears that I simply borrowed 30 ETH and have to repay 30 ETH? If so, what is the point of offering these individual borrowing options of "ETH 10x" and "VET 5x."
Thanks for reading and sorry for my mass confusion. Really appreciate the help.
Noob here who read up on margin trading and thought he knew what he was doing but is now having some difficulty. I couldn't find much info on this newer Binance 10x isolated feature so hopefully someone here can shed some light for me.
Say I have $1,000 USD, want to purchase ETH/USDT (we'll say it's trading at $200/ETH), and decide to use their isolated margin platform with upto 10x margin.
I go ahead and purchase the 5ETH, and borrow 30 more, holding it in that wallet for several weeks. Now the price has gone upto $220 and I'm ready to sell, but see the site only lists my current profit on the trade as $100 for the 5 ETH, and I still have to pay back 30 ETH plus interest.
Did I screw this up majorly? Was I supposed to borrow USD or BTC initially, use those funds to buy the 30 ETH, where I could now sell them back higher and keep the leftover profit?
Or am I still able to profit on these borrowed coins that have sat here going up the last several weeks? I initially figured the borrowed coins would be tabbed at $200 as well. But now it appears that I simply borrowed 30 ETH and have to repay 30 ETH? If so, what is the point of offering these individual borrowing options of "ETH 10x" and "VET 5x."
Thanks for reading and sorry for my mass confusion. Really appreciate the help.
Jump to: