Topic: Leverage Trading - page 3. (Read 873 times)
Any trade with leverage leads to a complete collapse. There are practically no people capable of controlling their even mental state for a long time. This is constant stress. and a breakdown, eventually.
In conclusion there's a producer and taker applied when you open/close your position so you ought to consider that huge loads of expense alongside the liquidation value that you are watching. However after some nerve destroying encounters that individual backtracked their means and is more calculative this day. Then again, there are even capable merchants who avoid influence exchanging at all cost.
Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank
Your idea is not false. But if you trade for $100 with 50x leverage then it can requisition you within 1 min In that case you will absolutely lose that $ 100. But if you use $5000 in spot trading. Even if the price of your purchased tokens is reduced by 99%, you will not have any problem but you can hold them for recovery. So it is always better to avoid leverage trading. Coz it is soo risky is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank
This is an old Bitcoin meme created through a South Park cartoon. It’s very funny and very relatable because it represents what/how most of us plebs were when we haven’t learned the hard way yet. I believe it was also commisioned by a Bitcoin trader.
https://www.youtube.com/watch?v=FD0mrmmYaKQ
https://www.youtube.com/watch?v=FD0mrmmYaKQ
~snip~
i never recommend anybody to make more than 10x leveraged trading , too risky and specilative over there once you get in.
It's very risky, but maybe it will also make you quickly have a lot of money. Maybe if your capital is large take levergae 5x that alone is enough. Remember you have to have more remaining funds to avoid liquidation. You should also think of alternaive strategies to avoid greater losses. I don't like this trade, I prefer spot trading because there is less risk than leveraged or future trading. Maybe if you learn it you can do it but everyone has their own pleasure to get the best profit. i never recommend anybody to make more than 10x leveraged trading , too risky and specilative over there once you get in.
...I like how easily Bitcoin and other shitcoins can get you profit, especially if you get the perfect dip, but I don't mind earning something from day trading using leverage. Of course, I use low leverage 
Leverage allows a trader to open a short position, and accordingly earn money in a falling market. This is something that no trader in the spot market can do. So without using leverage, in most cases you would have to stay away from the market.
That’s not true, ser. In sho ing, the maximum profit your trade can do is 100%. That’s only 2x of your money. To illustrate, many newbies make the common mistake of thinking that shorting from $10,000 to $5,000 gave them 100% of profit. No, it’s only 50%.
You are also counting incorrectly, since you do not specify the amount of leverage in your calculations. Your calculations are valid only for x1. Thus, if you use x10 leverage, then the size of your profit in your case will be 500%.
For context, we then go back to my original point, that what’s better for newbies? Simply HODLing, or gambling $100 with 50x leverage? Out of 100 newbies who do it, how many of them would not be liquidated?
I would always tell them to buy the DIP, and HODL, not trade with leverage without the education, the skills, and the capital.
That’s not true, ser. In shorting, the maximum profit your trade can do is 100%. That’s only 2x of your money. To illustrate, many newbies make the common mistake of thinking that shorting from $10,000 to $5,000 gave them 100% of profit. No, it’s only 50%.
I personally have realized profits of more than 100% in single open positions. I think you are mixing up two things. Position size and leverage.Honestly, if I had an equity of 1,000 USDT in my account, then I opened a short position using 2x Leverage using all my equity. My position size or margin would be 2,000 USDT.
a 50% drop of price of the asset from $10,000 to $5,000 would mean 100% realization of profit ($1,000 in profits)
If it dropped by 60%, that would be 120% profit ($1,200 in profits)
Using a higher leverage would even bring in bigger profits if the entry position is perfectly executed.
i never recommend anybody to make more than 10x leveraged trading , too risky and specilative over there once you get in.
That’s not true, ser. In shorting, the maximum profit your trade can do is 100%. That’s only 2x of your money. To illustrate, many newbies make the common mistake of thinking that shorting from $10,000 to $5,000 gave them 100% of profit. No, it’s only 50%.
I personally have realized profits of more than 100% in single open positions. I think you are mixing up two things. Position size and leverage.Honestly, if I had an equity of 1,000 USDT in my account, then I opened a short position using 2x Leverage using all my equity. My position size or margin would be 2,000 USDT.
a 50% drop of price of the asset from $10,000 to $5,000 would mean 100% realization of profit ($1,000 in profits)
If it dropped by 60%, that would be 120% profit ($1,200 in profits)
Using a higher leverage would even bring in bigger profits if the entry position is perfectly executed.
...I like how easily Bitcoin and other shitcoins can get you profit, especially if you get the perfect dip, but I don't mind earning something from day trading using leverage. Of course, I use low leverage
Leverage allows a trader to open a short position, and accordingly earn money in a falling market. This is something that no trader in the spot market can do. So without using leverage, in most cases you would have to stay away from the market.
That’s not true, ser. In sho ing, the maximum profit your trade can do is 100%. That’s only 2x of your money. To illustrate, many newbies make the common mistake of thinking that shorting from $10,000 to $5,000 gave them 100% of profit. No, it’s only 50%.
You are also counting incorrectly, since you do not specify the amount of leverage in your calculations. Your calculations are valid only for x1. Thus, if you use x10 leverage, then the size of your profit in your case will be 500%.
...I like how easily Bitcoin and other shitcoins can get you profit, especially if you get the perfect dip, but I don't mind earning something from day trading using leverage. Of course, I use low leverage
Leverage allows a trader to open a short position, and accordingly earn money in a falling market. This is something that no trader in the spot market can do. So without using leverage, in most cases you would have to stay away from the market.
That’s not true, ser. In shorting, the maximum profit your trade can do is 100%. That’s only 2x of your money. To illustrate, many newbies make the common mistake of thinking that shorting from $10,000 to $5,000 gave them 100% of profit. No, it’s only 50%.
...I like how easily Bitcoin and other shitcoins can get you profit, especially if you get the perfect dip, but I don't mind earning something from day trading using leverage. Of course, I use low leverage
Leverage allows a trader to open a short position, and accordingly earn money in a falling market. This is something that no trader in the spot market can do. So without using leverage, in most cases you would have to stay away from the market.
The main problem is that 90% of the remainder of the time bitcoin goes up or stays the same, we do not go down every single day, if you looked at the charts in daily forms, you will see that most days are either less than 2% fall, which could be considered spread, or an increase, the days that we have 2%+ drops are usually not that frequent, and out of 365 days a year, it is the least thing that happens compared to all other possibilities.
Thank you!
The problem came up as I found https://www.winrate.io/ A page for calculating profits in trading.
I putted in my both trades (100$ 50x vs 5.000$ 1x) (I used ByBit as exchange) and the results differ enormously. This is not clear for me, I thought the results should be equal.
The problem came up as I found https://www.winrate.io/ A page for calculating profits in trading.
I putted in my both trades (100$ 50x vs 5.000$ 1x) (I used ByBit as exchange) and the results differ enormously. This is not clear for me, I thought the results should be equal.
The results should be equal in both the trades since both of them will return the same amount of profit/loss.
I think you are doing something wrong because I tried the same and I am getting equal profits for both of the trades.
Could you share the screenshot by posting it on image sharing website and then posting the link here.
That way we will be able to identify what are you doing wrong and then correct it.
...I like how easily Bitcoin and other shitcoins can get you profit, especially if you get the perfect dip, but I don't mind earning something from day trading using leverage. Of course, I use low leverage
Leverage allows a trader to open a short position, and accordingly earn money in a falling market. This is something that no trader in the spot market can do. So without using leverage, in most cases you would have to stay away from the market.
...I like how easily Bitcoin and other shitcoins can get you profit, especially if you get the perfect dip, but I don't mind earning something from day trading using leverage. Of course, I use low leverage
Leverage allows a trader to open a short position, and accordingly earn money in a falling market. This is something that no trader in the spot market can do. So without using leverage, in most cases you would have to stay away from the market.
What the 90% of “traders” don’t truly understand is that the top 10% of traders, who are real professionals, WANT them to continue trading. The “traders” are their victims.
Do you want to be a victim? Or do you want to simply Buy Bitcoin, and HODL?
Do you want to be a victim? Or do you want to simply Buy Bitcoin, and HODL?
And they are within their rights to do this, after all if I was in their position to make a lot of money thanks to the completely mistaken ideas that the majority of those that trade the markets have then I would do the same, and I think that is pretty much a given for everyone else.
It is in their right, as newbies, to lose their own money gambling with high leverage in shitcoins, but it’s also in our right to give them an opposing point of view to make them stop from losing their own salary, their wife’s salary, their mother’s salary.
However even if we help them out that does not mean that they have actually learned their lesson as the temptation to invest in all kind of useless coins or use a lot of leverage will always be there, and if they cannot remain firm on their desire to stay away from those options then they will eventually lose their money.
The leverage is just too huge to resist for newbies but having just $100 with 50x is going to be easy money for the platform to bet on to get the margin call.
Exchanges are also market makers, they are probably always betting against the 50x leverage plebs. They can make the price “DIP”, liquidated the plebs, then collect their money. “Thanks for playing ser, come again”.
Finally there's a producer and taker applied when you open/close your position so you ought to consider that huge loads of expense alongside the liquidation value that you are watching. So assuming that you consider influence exchanging, don't simply think about your expected benefit, think additionally about your possible misfortune. The higher the influence, the higher the danger.
What the 90% of “traders” don’t truly understand is that the top 10% of traders, who are real professionals, WANT them to continue trading. The “traders” are their victims.
Do you want to be a victim? Or do you want to simply Buy Bitcoin, and HODL?
Do you want to be a victim? Or do you want to simply Buy Bitcoin, and HODL?
And they are within their rights to do this, after all if I was in their position to make a lot of money thanks to the completely mistaken ideas that the majority of those that trade the markets have then I would do the same, and I think that is pretty much a given for everyone else.
It is in their right, as newbies, to lose their own money gambling with high leverage in shitcoins, but it’s also in our right to give them an opposing point of view to make them stop from losing their own salary, their wife’s salary, their mother’s salary.
However even if we help them out that does not mean that they have actually learned their lesson as the temptation to invest in all kind of useless coins or use a lot of leverage will always be there, and if they cannot remain firm on their desire to stay away from those options then they will eventually lose their money.
The leverage is just too huge to resist for newbies but having just $100 with 50x is going to be easy money for the platform to bet on to get the margin call.
New investors forget that the market moves in two directions which if they have just started investing last year, then they've only seen the market in one direction. It's not a good decision to dip thier feet on options. They can easily lose thier money when the market moves against their position.
Using that strategy, would a simple, inexperienced pleb like you or me outperform the basic strategy of buy the dip, and HODL? Bitcoin would profit you more than 10x from March of 2020, more if you bought the right shitcoin, but many leveraged traders either do not outperform, OR lose their money through liquidation.
You have got to start from somewhere, my friend. Even those so-called professional traders you call today were once some inexperienced plebs. Without learning from your mistakes and being smart, you remain the same inexperienced pleb over the years.I like how easily Bitcoin and other shitcoins can get you profit, especially if you get the perfect dip, but I don't mind earning something from day trading using leverage. Of course, I use low leverage
What the 90% of “traders” don’t truly understand is that the top 10% of traders, who are real professionals, WANT them to continue trading. The “traders” are their victims.
Do you want to be a victim? Or do you want to simply Buy Bitcoin, and HODL?
Do you want to be a victim? Or do you want to simply Buy Bitcoin, and HODL?
And they are within their rights to do this, after all if I was in their position to make a lot of money thanks to the completely mistaken ideas that the majority of those that trade the markets have then I would do the same, and I think that is pretty much a given for everyone else.
It is in their right, as newbies, to lose their own money gambling with high leverage in shitcoins, but it’s also in our right to give them an opposing point of view to make them stop from losing their own salary, their wife’s salary, their mother’s salary.
However even if we help them out that does not mean that they have actually learned their lesson as the temptation to invest in all kind of useless coins or use a lot of leverage will always be there, and if they cannot remain firm on their desire to stay away from those options then they will eventually lose their money.
Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank
$5000 with 1x leverage means need to move a lot before get liquidated, and $100 with 50x leverage means only need little spread of market movement to get liquidated. If i have $5000 maybe i will be more confident to trade because (but this is my personal opinion) leverage trading almost like how much our capital can hold our order, so longer that we can stay in market before liquidated is better. is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank
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