Leverage Trading - page 5. | Bitcointalksearch.org

tygeade

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Quote from: Wind_FURY on January 07, 2022, 04:57:06 AM

No difference unless you want to throw your $100 away, and which could have been better if saved in Bitcoin. Nothing great was built overnight.

If we look at when you posted your question, and the current mini-crash, I believe your $100 with 50x leverage gamble didn’t last you more than a day. Cool

Unless he shorted it, there is shorting available as well and if you shorted at that time with 100 bucks and the price went low, then it would have been a over a thousand dollars depending on what type of leverage was used. I am not saying that leverage trading is great and all, we literally have a majority failing at spot trading so to expect that people could be great at leverage trading would be naive.

Unfortunately people can't keep their emotions out of trading and that results with bad situations which means if you put that into leverage people would be even more emotional and things going to end up not being so profitable and also psychologically a problem.

Ararbermas

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The amount of profits you can make from using different leverage is the difference mate..$100-1x and 5k- 50x. Just compute both for you to know how much you can get on both trades.. And yes the liquidation as well because that's is futures trading mso better to understand the rules so that you're aware what will be the results.

VanityWallets2015

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I really do like this kind of topic from new traders, I was like that before whenever I don't understand things in trading from the materials I read online. Well I think it's two different thing just come to think of this, the higher the leverage the more risk you will get. So I think it's better to stick with the spot trading or explore the futures with a smaller amount.

MIner1448

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Taking into account the volatility of the market, your deposit of $ 100 with a leverage of x50 will not be enough to practically budge, let's say your rate has dropped at least from the original price by 1% - this is already 50 times of your deposit, most likely even up to 1% your rate will not go negative, your deposit liquidity will burn out on the way to this amount.

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Quote from: FrankTheTank1 on January 04, 2022, 05:05:57 AM

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

With leverage of 1 you probably mean a normal long position. You probably own the underlying asset directly and experience any change in price 1 to 1 in your portfolio. If there is a crash in the market the price will drop close to 0, but you can't lose more than your original 5000 USD. As for the 50x leverage here you probably don't own any underlying asset and just a contract that participates you on the price movement. The biggest issue for me is that your losses are not limited to the 100 USD investment. You could lose much more than that.

Wind_FURY

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Quote from: FrankTheTank1 on January 04, 2022, 05:05:57 AM

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

No difference unless you want to throw your $100 away, and which could have been better if saved in Bitcoin. Nothing great was built overnight.

If we look at when you posted your question, and the current mini-crash, I believe your $100 with 50x leverage gamble didn’t last you more than a day. Cool

tvplus006

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Quote from: Oshosondy on January 07, 2022, 01:28:41 AM

Please what did you mean by unsuccessful transaction while trading, I do not think making transaction and trading are connected.

I meant a unsuccessful deal, after which the trader usually remains without pants) Right now, the market is showing exactly such a movement that all those who hold a long position with a large margin and at the same time have not set a stop loss have already been liquidated or will be liquidated in the near future.

lixer

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Quote from: FrankTheTank1 on January 04, 2022, 05:05:57 AM

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?

You may not feel any differences between leveraged trading and non-leveraged trading until market is in your direction (except the fee for availing leverage in terms of interest in some exchanges). But, when market turns against you then you will start feeling the heat. It means that you can wait up to $5000 movement with non-leveraged trading whereas you can wait only until ~$98 price movement in leveraged environment because after that it would be not your money hence you are not allowed to wait more.

In this high volatile bitcoin market, if your technical analysis are too accurate then you may go for leveraged trading like once you enter then market should keep going up; if you cannot generate that kind of accurate signal then you should trade only at spot market.

Oshosondy

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Quote from: Peanutswar on January 06, 2022, 12:21:34 PM

Using a leverage is you are allowing the exchange to borrow some money for your trade of course if you can't pay anymore it might get liquidated if you are making a trade with 1x looks like you are doing spot trading not futures trading but in the higher leverage this helps you to get more profit but if you make a mistake might ruin your wallet balance. Always trade what you are willing to lose.

That is true but I will not consider future trading as making a mistake because it is normal that if newbie start to trade using leverage, they will lose, even they will lose if they are just trading without leverage but the loss will not be as much as using future trading. I remembered when I started future trading, I used 125x all because the little I had was multiply by 125x, making it very huge amount, but I did not know that the liquidation price is very near which was what happened.

Quote from: tvplus006 on January 06, 2022, 01:08:52 PM

The desire to earn quickly and a lot, forces beginners to use high leverage. Obviously, they consider this type of trading as a casino, while they expect to get only a positive outcome of the transaction for themselves. But the reality turns out to be different and they lose their deposit after one unsuccessful transaction. Therefore, you made the right decision to delay margin trading.

Please what did you mean by unsuccessful transaction while trading, I do not think making transaction and trading are connected.

tvplus006

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Quote from: FrankTheTank1 on January 05, 2022, 02:34:21 PM

I think, I should not use leverage before I get some experience.

The desire to earn quickly and a lot, forces beginners to use high leverage. Obviously, they consider this type of trading as a casino, while they expect to get only a positive outcome of the transaction for themselves. But the reality turns out to be different and they lose their deposit after one unsuccessful deal. Therefore, you made the right decision to delay margin trading.

Peanutswar

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Using a leverage is you are allowing the exchange to borrow some money for your trade of course if you can't pay anymore it might get liquidated if you are making a trade with 1x looks like you are doing spot trading not futures trading but in the higher leverage this helps you to get more profit but if you make a mistake might ruin your wallet balance. Always trade what you are willing to lose.

palle11

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Quote from: FrankTheTank1 on January 04, 2022, 05:05:57 AM

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

The difference is that they are both of different advantage. Taking a higher risk gives a higher profit and a lower risk taken is equals to a lower profit. Therefore for example trading with a 50x leverage against a 1x leverage is not the same. Professionally , it is better using a low leverage than a high leverage because if your prediction of trade goes wrong, your account suffers it.

AicecreaME

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Quote from: FrankTheTank1 on January 04, 2022, 05:05:57 AM

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

The $5,000 trade with 1x leverage is the slowly but surely trade, usually this kind of trade is for long term, while the $100 with 50x leverage is the high risk high reward trade, it is not recommended but if you love thrills and easy money and easy losing of your money, it is the best trading approach you should do. In short, the first one is for patient people while the last one is for impatient people.

gabbie2010

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Quote from: FrankTheTank1 on January 04, 2022, 05:05:57 AM

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

Risk factor differs in both trades, leveraging a $100 trade with 50x is too risky infact any slight dump in the price of crypto pair traded will trigger a margin call by the exchange based on personal experience while trading with Binance, however $5 with 1x less risky though with a smaller profit, preferably adoption of cross margin which is 3x in Binance is quite reasonable coupled with a good trading strategy and money management a good and experience trader will earn a decent profit in a long run.

Oshosondy

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Quote from: aoluain on January 04, 2022, 08:02:54 AM

Most experienced leverage traders only use 2 or 3x

How did you know that most experienced traders uses 2 or 3x leverage? Did you have any data about that? I too can say most experienced traders uses no leverage at all but just 1x and also some decide not to go beyond 2x. But if we are talking about experienced traders, did you believe some can go as high as 5x during far volatile market in a way there has been a massive price drop, but the more leverage the more the certainty of liquidation.

Poker Player

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Quote from: FrankTheTank1 on January 05, 2022, 02:34:21 PM

Thank you all!
I think, I should not use leverage before I get some experience.

And if you ever use it, think about using the lower leverage the better. No matter how good you are, the more leverage and the longer you are using high leverage, the closer you get to 100% probability of being liquidated, that's why expert traders use low multipliers, because no matter how good you are, the market swings end up beating you.

I also tell you that from the trading houses leverage trading is promoted a lot, with ads like "deposit 1 and trade with 100", things like that, because at the end of the day they earn by commissions but if the traders in the stock market that earn money are very few, in the crypto market are even fewer and I would say that using leverage in the long term will be 0.

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FrankTheTank1

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Thank you all!
I think, I should not use leverage before I get some experience.

odolvlobo

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Quote from: FrankTheTank1 on January 04, 2022, 05:05:57 AM

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

The difference is that you are investing X dollars in the unleveraged trade, and 50X dollars in the 50x leveraged trade. You get the other 49X dollars by borrowing them. In order to protected the lender, your position will be automatically closed by the exchange if it thinks that there is any chance that any of the 49X portion will be lost. Frequently, the position is closed and you are left with nothing. Typically, a 50x position will be closed if it is down a little more than 1%, and you will lose most or all of your money because whatever is left over after paying back the lender will be used to pay fees.

Another difference is that you must pay interest on the borrowed money.

Darker45

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You seem to be asking the wrong question. Trading with x1 leverage versus trading with x50 leverage is all about differences. There's almost no similarity at all. You should've asked what's similar between the two. You're actually comparing between no leverage, which x1 leverage essentially means, and high leverage.

If you trade $5,000 with x1 leverage, you're still trading with your own $5,000, no leverage at all. If you're trading x50 that means your $100 is like $5,000. But since the latter is magnified with x50, it means the potential profit and the potential loss are also magnified. So if you think of leverage trading, don't just think of your potential profit, think also of your potential loss. The higher the leverage, the higher the risk.

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Quote from: FrankTheTank1 on January 04, 2022, 05:05:57 AM

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

Obviously the difference is the liquidation price which is very huge, and It has a very high impact on your win rate, risk and reward and the impact of a single loss on your portfolio

Quote from: FrankTheTank1 on January 04, 2022, 08:51:35 AM

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 can never be equal since your winrate will be affected alongside other factors

Topic: Leverage Trading - page 5. (Read 846 times)