Topic: How to read the screenshots traders post. An example. (Read 338 times)

Using modest quantities to trade does not seem appropriate because the market is enormous and there is nothing anyone can do about it. The market's volatility can cause our trading position to be profitable or unfavorable. Choosing an advantageous exchange is going to assist you immensely when it comes to trading. We're here to make substantial earnings in the system; we don't have time to squander because if we don't take advantage of favorable prospects, there will be nothing we can do when these projects begin to pay off. Futures trading has been compared to trading crude oil. It's complicated since it's broad and not as simple to understand as spot trading.

Are you doing some trading exploration right now? Because if yes, it means that you really have an allocation budget for the trading practice you want to do. I've been here for a few years, but I've never tried that in the image you gave here because I don't want to take a step that I'm not sure about.

For example, it's as difficult as driving a car when you're not sure if you can really drive it because just a little mistake can cause you to have an accident right away. The same is true when doing trading like that; we must be sure of what we're going to do.

All the questions OP asked in the post have already been answered so i am not going through them again but only one suggestion for OP is to follow the guide that your exchange shows you when the first time you try to trade in any exchange. Most of the top exchanges have this as a quick guide for their traders after they log in for the first time. They also have a blog post where all of their trade, functionality and terms are explained in an simple way. So just don't skip the walkthrough if you are a newbie.

Whenever I trade I keep the screenshot with myself because if there is a problem tomorrow then we would be aware of that and we would be ready for that. For example if some exchange keeps your money locked due the KYC issues then you can easily send these screenshots of your data in the exchange and also if they wants your recent trades in the exchange then it would be also spendable. In the case we didn't have all these data kept safe in a place where it would be then there might be some problems creates in that case. We should be aware.

That is not from the binance from the User Interface it probably belongs to bybit,

Like everyone else said already the person is doing derivates trading and it is called futures trading basically it just buying and selling contracts and not real crypto involved but using data from real spot trading. Other details already mentioned by Oshosondy

basically futures is easy way to get money if you know what you are doing but if you dont have experience in trading I would recommended you trading spot only or just try the futures one with 5$ money

All of the given information mentioned by @Oshosondy I just want to add some of the given images, when you click the TP/SL this will shows you information of the market price you want to Take Profit which means a designated target you want to close your position the same with the Stop Loss this specified position once it reaches the amount you want to cut your losses, this feature is ideal to use for the people wants to make an overnight trade or they cant watch too much their trades with different activities of course well still ideal to use but most often this is reason too. The Close button identifies the current market position with your Unrealized PNL so if you close immediately just use that button.

OP, it should also be emphasized that newbies who want to trade with leverage should use Isolated Margin if you're going to trade more than one contract/asset, especially if the leverage is high like that screenshot. You don't want the paper-loss of one to take the profit of the other. You want them separated. Plus it's probably better to accept a small loss and close the trade, but that's for a different topic.

Permit me to say this that maybe OP does not know how to read chart or trades and requires someone to help in the interpretation of what this means, if my guess is right then maybe he would have ask for the simple and direct way on how he can be put through to understand how to read and interpret trades, we are all bound to learning and growth, we can deny the fact that we don't know some things than when we create time and sit to learn them.

The one i dont understand here in the picture is the REVERSE what is the meaning of that, in my own i use ISOLATED rather than CROSS, so if the reverse can be explained so i get to usnderstand what it stands for.

I think you are right sometimes when you see a photoshopped screenshots you may think that it's real not knowing that it's not real, so therefore we have to be conscious of what people post, when I come across all this kind of screenshots then I do skip them because I know that is a tactics some people use to get ruined of some people, it's better as it came to discussion and many people who are myopic in this kind of things will know and understand and also take a precautions for future purposes 

It's very obvious and I know quite well that maybe this conversion will a something of scam but we maybe not know, because you and I know that a screenshot is something to show an evidence and it can be edited or been done with a photoshopped, so trading is something that have skill and you most understand the principles manual and with consistent practice before you can understand it, a screenshot can not give someone who doesn't know trading insights to know what's going on there.

1. This could have been made in any exchanges. But this kind of looks like Kucoin. Not entirely sure because this could also be any other platform.

2. The mark Price is like an average between the last traded price and the current market price.

3. The margin is borrowing money from the platform and then using it to make a bigger trade keeping your own money on the line.

4. Risk- 9.89%, shows how much possibilities your trade has of losing. If the market is in your favor then the risk will below and if it's against you then the risk will be high. For example people say, there's a 50% chance for you to win. Or there's a 90% chance that you will lose. Based on your opening price, if the market moves in your favor, then the risk will be less and if the market moves against you the risk will be higher.

5. "Est. Liq. Price" is when your trade closes automatically.

6. "Cross 10x" is using 10 times your money for a trade.

7. You are on your own mate. Just keep learning and don't overdo it. Get a hold on to your emotions. Don't let it out. Don't make decisions when there is no need to make one. That's all.

Considering that the liquidation level is located at $ 2.462, it can be said for sure that the trader does not risk his entire deposit, as beginners usually do, but uses only a few percent. But this price level is not safe, it simply indicates that the liquidation of his order by the exchange is unlikely, but the trader will still incur an unfixed loss.

Cryptocurrency market is volatile and there is no Circuit Breaker like stock market.

With leverages for your Margin trading position, don't say NEVER.

Because everything can happen, price can crash not because of natural supply and demand but by price slippery movement or worse Cascade effect. You will not have enough time to understand what happen and when you realize the crash, you already lost money by forced liquidation.

Only one example Ethereum flash crash in 2017.
CFTC Investigating Ether Crash on Coinbase Exchange

Oh now I see. 97524.9 DOT x 5.181 USD = 505276.50 USD.
Yeah, that is a lot of money!
The trader seems to be so sure that the price will go up. That is why he is  risking his own ~50k of cash.

However, look at estimated liquidation price. It is 2.462 USD. I mean DOT was never at that price. The lowest price for DOT was ~3.58 USD on October 19, 2023. And given that these days markets are green, is there really a chance that DOT will make it all the way down to 2.462 USD? Kind of very safe bet? No?

If this is how long trading works, can a trader make a long position on BTC and set estimated liquidation price at 15k usd? Like he is sure BTC will not see 15k, and that will be his liquidation price.

I think he doesn't intend to go that way. The OP seems to want to learn what he's actually looking at, and it happens that he doesn't know yet. It's a screenshot of futures trading.. it's perfectly normal for newcomers to want to understand the key points when starting futures trading. And usually, people who learn on their own won't be influenced by affiliates or invitations to do something extreme.

I see a lot of potential in the OP, so it doesn't seem like a big issue to ask for details about that screenshot.

A little attention for trading with leverage is that the risks increase. It's true that you can easily make +20% using 20x leverage and a 1% price increase, but remember, it cuts both ways. If the price goes down, it's also multiplied by x20. So never play with leveraged trading without considering the risks because many assets get liquidated on Binance.

https://t.me/BinanceLiquidations << see on telegram to see how many people have suffered losses due to Binance Futures Liquidation in leveraged trading.

Using big fund as a collateral for your cross margin account and your margin position look safely but it is safe only in normal conditions.

If assets in your big fund have serious problems like Terra token (LUNA, UST) or FTX exchange token (FTT), I am sure your big fund will become small fund and your collateral will become small enough to cause you a forced liquidation by exchange.

Honestly Margin is always risky and don't think with a big fund, you can be safe with Margin.

1. You still haven't figured out what is shown in the screenshot. The trader has opened a position not for 5 thousand dollars, but for 50530.9091, which, taking into account the leverage, is about half a million dollars. And when a trader opens an order for $ 50k, it confirms the fact that he operates with a lot of money.

2. Yes, provided that you know how to trade.

Don’t pay attention to any of these screenshots that you see being posted all over twitter or Reddit or discord. Usually they are there to get you to join thru their affiliate where they get a portion of your trading fees.

Many post these screens shots and they can easily be photoshopped or they just have 2 accounts one for long and one for short and they post the winning trade. All they want to do is get you to either follow them or join thru their referral link so they can get some revenue that way.

This! This is what I mean by 'reading screenshot'. You probably have some experience so your understanding of this screenshot is somehow more in depths.
Coupe of questions if I may:

1. what makes you think he has big funds? Because he opened position with 5000 USDT?
2. can you please explain 'a low leverage to play it safe using cross margin is still profitable unlike when you only have a very small funds'?

thanks.

Thanks for the note of warning! I am not going to trade. It is just out of curiosity and to understand what is all this talk about.

There's nothing important about that screenshot that can help you in your trading journey, to be honest, he's just flexing his successful entry on that certain coin. But based on that screenshot, he knows what he's doing, because of his leverage and margin. You can also figure out that he has a big funds so using a low leverage to play it safe using cross margin is still profitable unlike when you only have a very small funds.

Instead of wanting to know how to read that screenshot, it would be better if you're going to study about how to read the price chart for your technical analysis, which is more worthy to be learn, in my opinion.

@Oshondy cover most of the answer but I’m wondering if you are inquiring the general information about the Mark Price and Margin itself so I’m happy to help.

Mark Price is the current price of the token he is currently trading. This is the basis for the computation of the Unrealized PnL shown on the screenshot. Unrealized PnL = Mark Price multiply to the total tokens he is holding.

Margin is the total capital he is using for that specific trade. On his screenshot it’s his original margin multiply by the leverage he use for that trade.

First of all, you made bad choice to join a Trading group because you kick off your journey to become more dependent on other people, their thinking, works and signals. With this dependence, you will not grow up well in this risky market.

Start with reading about fundamentals of biggest cryptocurrencies first, Bitcoin and Ethereum. Don't join other altcoins because you will lose money with them by trading.

If it is Binance, you can search explanations and examples for those terms, order types with Binance Academy.

If it is not Binance or you don't have to know what is that exchange, you can search for Cryptocurrency terms, Trading terms with
Coinmarketcap.com - Crypto Glossary
Coingecko.com - Glossary
Investopedia.com

Warning: Trading is risky, won't make you rich and never trade if you can not afford loss with trading.

1. You do not need to know where the trade is made but focus on the PnL and other necessary information. From what I think, it would be from Huobi (HTX).

2. The mark price is well stated distinctly and it is $5.339

3. He used 50530 USDT to trade. The margin is 10x which is 505300 USDT.  If you convert the 505300 USDT to Dot, it is 97524 DOT when he opened the position.

4. It is the percentage of his gain or loss compared to the total margin used. If it is positive, it makes gain. If it is negative, it means loss.

5. Estimate liquidation price is the price his money used to open position will be exhausted and he will lose all if the price go against the direction of the position opened. After he lost all, no position opened again.

6.  It is the margin used. Assuming you have $100. If you use 10x margin, you will have $1000 to trade.

There are two types which are isolated and cross margin.

In isolated, the money remaining in your future trading account will not be deducted if you are losing. It means you can not transfer more money to increased the liquidation price. Some traders prefer it while opening many positions.

Cross margin means if your money used to open position is decreasing, it will also be decreasing from your future trading account. If the price is getting close to liquidation price, you can transfer money to your future trading account to increase the liquidation price so that your money will not be liquidated at the initial price.

You will need to use small amount of money to try this and experience what that I am taking about.

7. Trade with like $2 to learn.

Here is the screenshot that was posted on a Telegram channel, and people seem to be exited about it. I kind of understand that the person is doing trading, however, I am not sure I understand the details.





So the general question is how to read the screenshot?

1. Where is the trade is made? I guess Binance, I might be wrong
2. What is Mark Price?
3. What is Margin?
4. What is Risk? What does the 9.89% risk means in this particular case?
5. I guess "Est. Liq. Price" means the price at which DOT will be sold. Is that right?
6. What is Cross 10x means?
7. Any other details to pay attention?

Thanks.