Leverage Liquidation!!! | Bitcointalksearch.org

Shishir99

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Quote from: bestcandy on January 30, 2025, 07:36:19 PM

Trading is a game of profit and loss, it's not something that someone that don't adequate skill or knowledge will think of going into. Considering the risk involve in trading I don't it's a wise decision for some to take a loan because of trading.

These are the mistakes traders make actually. I wouldn't even start my position with more than 20% of my total portfolio because I cannot lose them all. However, some people invest their 100% portfolio and even take loans to increase their position size. This is a dumb decision, to be honest. No trading is 100% safe. So, how do people actually take the risk to invest their 100% portfolio in a single trade?

A trader should invest 10% of his portfolio in a trade. In case he loses one, he could recover that loss with his remaining 90% portfolio. There is a possibility of losing trade multiple times in a row. Considering this, they should not open a position with more than 10% of their portfolio.

slaman29

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When did 5% downturn become brutal in crypto lol I mean, we're all back at above 1k and looking to make new heights or break resistance, wait til you see 10% drop in a day, 3 days in a row. Its crypto, its normal

Stops are there for a reason sure, but if you're doing leverage even at 10x then your 5% stop loss becomes almost impossible to maintain in crypto. Hence the 100x leverage guys I never get

gunhell16

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Quote from: ? on January 30, 2025, 09:28:13 AM

This week has been brutal in this space with prices having a down turn.
A good time to buy if you ask me, from the little info gathered, a buyer can buy when low and hold. This is for traders though.
As good a thing as the low markets, yea, it's good because it's cheaper and will eventually, likely rise again in the future...you never know.

However, the down turn seem to be driven by leverage Liquidation. This is because some traders take loans, with which they increase trading positions. At the end of it there either a profit or a loss.
Whichever happens affects the market.

Since this can drive the curves downwards, is it encouraged to keep leverage Liquidation or it should be discouraged?

You know, if you enter these categories, you should really be prepared for the amount you can lose, especially if you know to yourself that your knowledge in trading is not that extensive.

If those experts are considered to still lose in the end and are often liquidated, they still encounter us, so we don't have enough knowledge, right?
So if you want to be safe, go to the spot or just hold for now.

MusaMohamed

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Quote from: ? on January 30, 2025, 09:28:13 AM

Since this can drive the curves downwards, is it encouraged to keep leverage Liquidation or it should be discouraged?

It's a product from exchanges, and if people don't have demand to use that product, it will naturally die with time.

Now, you can think of whether people have demand to use leverages for their trading positions. I can say there is huge demand from cryptocurrency traders, and this leverage trading products won't die. Exchanges don't stupidly shut down a product that is money making for their business.

You can see high demand and part of it was liquidated with this chart.
https://www.coinglass.com/pro/futures/Liquidations

X-ray

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that's just the usual risk with leverage trading sometime the market chase after the biggest liquidation point, what you can do in a nutshell isn't opening a leveraged position and having your liquidation point at that pain point where the market can chase your liquidation.
other than that you can simply trade with no leverage, there's reason why majority of people trade on spot because they don't need to think about getting liquidated at the expense of having lower profit of course, but it's still better than seeing your position get liquidated only for the market to recover 10 second later.

future trading is risky and if you insist on trading with leverage, you should just use small amount of money as a margin.

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What usually happens in the market is a chain reaction.
Now we all know that the markets are to move in any direction depending on what might have happened. It could have been just a correction after a recent uptrend or even new just like that DeepSeek AI news triggered a downtrend.

The downtrend then triggers spot market stop losses, stop losses for long positions, and also some liquidations for other long positions that didn't have any stop loss. All those 3 triggers make the market to drop down further as the bidding side of orderbooks gets wipped out in a short time until the market stabilizes.

So where you keep your position open or not depends on your risk management strategy, your liquidation price, funding fee rates for the contract you are trading etc.

bestcandy

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Quote from: ? on January 30, 2025, 09:28:13 AM

This week has been brutal in this space with prices having a down turn.
A good time to buy if you ask me, from the little info gathered, a buyer can buy when low and hold. This is for traders though.
As good a thing as the low markets, yea, it's good because it's cheaper and will eventually, likely rise again in the future...you never know.

However, the down turn seem to be driven by leverage Liquidation. This is because some traders take loans, with which they increase trading positions. At the end of it there either a profit or a loss.
Whichever happens affects the market.

Since this can drive the curves downwards, is it encouraged to keep leverage Liquidation or it should be discouraged?

Trading is a game of profit and loss, it's not something that someone that don't adequate skill or knowledge will think of going into. Considering the risk involve in trading I don't it's a wise decision for some to take a loan because of trading.
Although, the price of Bitcoin have appreciated above $100k but instead of trading I think that the best way to invest in Bitcoin is to leverage the opportunity when the price depreciate and buy then hold it for long term for future profit when the price appreciate.

Botnake

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Quote from: Ambatman on January 30, 2025, 09:33:21 AM

I don't support future trading or using leverages.
It's quite risky in my book and could lead to net losses
I still believe buying and holding is the best
Barely requires any skill at part from protecting your asset.
I have heard of people making it big in trading, but I'm sure majority should be from Spot trading.

#HODL

If you are still a less experienced trader, going into leverage trading is such a risky move. You could have end up losing all your funds in just a single trade, and fall into liquidation. Trade but never be greedy. Otherwise, if you rush into forcing yourself to make huge returns from trading, you will only regret in the end and even leave you drown into debt. Trading with leverage is good, but know that not everyone is capable to make it profitable from leverage trading. Focus on hodling instead.

cryptoaddictchie

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Quote from: Ambatman on January 30, 2025, 09:33:21 AM

I don't support future trading or using leverages.
It's quite risky in my book and could lead to net losses
I still believe buying and holding is the best
Barely requires any skill at part from protecting your asset.

Yes crypto future trading is quite risky thats why we can pick the options we wanted to do our trading strategy. Spot trading is more good and much less riskier.

Doing some holding can also ease tension and stress. I think that future are for those can manage their risk cause the percentage of winning is just the same on losing. So if you really not careful you could burn in this.

Oshosondy

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Quote from: ? on January 30, 2025, 09:28:13 AM

This week has been brutal in this space with prices having a down turn.
A good time to buy if you ask me, from the little info gathered, a buyer can buy when low and hold. This is for traders though.
As good a thing as the low markets, yea, it's good because it's cheaper and will eventually, likely rise again in the future...you never know.

Bitcoin just got to $106000. After the DeepSeek that caused downtrend, the market is back up.

Quote from: ? on January 30, 2025, 09:28:13 AM

Since this can drive the curves downwards, is it encouraged to keep leverage Liquidation or it should be discouraged?

Just do not trade with leverage to avoid liquidation.

Ambatman

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I don't support future trading or using leverages.
It's quite risky in my book and could lead to net losses
I still believe buying and holding is the best
Barely requires any skill at part from protecting your asset.
I have heard of people making it big in trading, but I'm sure majority should be from Spot trading.

#HODL

?

Activity: -

Merit: -

This week has been brutal in this space with prices having a down turn.
A good time to buy if you ask me, from the little info gathered, a buyer can buy when low and hold. This is for traders though.
As good a thing as the low markets, yea, it's good because it's cheaper and will eventually, likely rise again in the future...you never know.

However, the down turn seem to be driven by leverage Liquidation. This is because some traders take loans, with which they increase trading positions. At the end of it there either a profit or a loss.
Whichever happens affects the market.

Since this can drive the curves downwards, is it encouraged to keep leverage Liquidation or it should be discouraged?

Topic: Leverage Liquidation!!! (Read 73 times)