Most experienced leverage traders only use 2 or 3x
You're right and that could be because they've been beaten by losses occasioned by their early misuse of leveraging. Most noobs use high leverage because they tend to believe in hitting it big at once on profit while neglecting the axiom, "slow and steady wins the race." I know of someone who started with x25 even though they didn't have any basic trading skill apart from self-feelings and instinct. Though after some nerve wrecking experiences that person retraced their steps and is more calculative this day. Come to think of it, there are even experienced traders who steer clear of leverage trading at all cost. 
Topic: Leverage Trading - page 6. (Read 846 times)
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.
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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
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
Technically your idea is correct since you understand the liquidation part since it's the only major difference for spot and leverage trading. Second is the interest fee per day for borrowing that money for your leverage trading. Lastly there's a maker and taker applied when you open/close your position so you should consider that tons of fee along with the liquidation price that you are watching.
The biggest difference for me straight off is if you want to be guaranteed to be liquidated
or stopped out go with $100 @ 50x it will only take a couple of % of market movement
to trigger loss or stop.
Most experienced leverage traders only use 2 or 3x
When you hear "the market is over-leveraged"
they are referring to the absolutely crazy high gambles like 50x and these either pump
the markets when the shorts get liquidated or dumps when the longs get liquidated
or stopped out go with $100 @ 50x it will only take a couple of % of market movement
to trigger loss or stop.
Most experienced leverage traders only use 2 or 3x
When you hear "the market is over-leveraged"
they are referring to the absolutely crazy high gambles like 50x and these either pump
the markets when the shorts get liquidated or dumps when the longs get liquidated
Hello,
is there any difference between a trade with 5.000$ 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
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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