Topic: My story with leverage (Read 291 times)

I think trading BTMX leverage is riskier than losing it here compared to many risky places When I traded here I lost almost everything and then stopped trading and started trading on Forex which helped me get back my old money. That is why I think it would be best to hold the trade in front of the market situation. By trading on Bitmax you are only better off because you are away.

That's the usual case. Actually in leverage trading if ever our margin balance exhaust above 80% they send us various mails informing us to increase our margin balance which only is possible by depositing some more funds or closing/changing the position. Many traders(especially newbies) make a mistake by depositing more funds just to increase their liquidation price and this is where they are trapped.

Markets move in opposite direction and this leads them to lose every single buck onto the leverage account. That is a major risk associated with leverage trading and hence mostly, newbies should try to go for leverage trading. This would mostly only land them in loss as leverage trading can highly be compared with gambling where your luck plays an important factor.

Well, now even binance has uplifted the maximum leverage upto 125x which usually attracts a lot of investors. Usually we could even trade with contracts for 1 BTC with just 100$ in our margin balance by trading with 100x leverage and this might even show huge profits but risk associated here is comparatively much higher.

In case you are trading with 1 BTC contract by keeping 100$ in your margin balance would make you lose those $100 if ever the price bounces back in opposite direction by just $100. In no time you would see your futures account loosing each and every dollar on board. There might be some individuals who have made profits from leverage trading but at the end, it is the exchange which makes profits and not the traders. Each trader has to face loss at the end.

I also have a horrible experience during Leverage trading in bimex. I early days i was jumped in to Bitmex because of a huge hype those days and i lost my 2.5 Eth it was costing me 2.5x400 = 1000 usd.

That day and today even i not login my account, This is a game of do or DIE. All immature and newbies stay away from this shit.

A trader who gets excitements out of failing to control his emotions may not succeed even in spot trading. In leveraged trading, people are assuming themselves as a whale once they are all set with big capital but they do fail to realize their actual potential. This is the reason why they do fail. Leverage trading is good only when you are too accurate with your analysis. I guess no trader will be able to 100% accurate with their buying or selling levels.

Leverage trading gets us some virtual potential to trade and obviously with lots of strings attached. It means you are not really getting what you seem but you are tied not to trade with your original capabilities too. It is better not go for leveraged trading as it is not letting us being us to trade with peace of mind.

It is not about how people are misusing, but how they are not correctly using this feature and getting busted every time they leverage trade. Leverage is meant to lure highly addicted traders [gamblers] to their websites and make them deposit more and more after losing all their balance. They also allocate you a personal assistant who helps you in taking decisions in markets and tells you what to buy/sell. You need to trust me on this that you should never listen to these suckers, they will just make you lose in 3 trades and will show us the disclaimer afterwards that they just gave us opinions and the rest decision was ours only.

Leverage has become increasingly popular recently now that more and more people are advertising their massive gains from leveraged (gambling), and many derivatives exchanges actively advertising the high leverage offered on pairs certainly doesn't help either. The winner for all of this ends up being the platform, and I even recall Bitmex used to have a much lower maximum leverage a few years ago (something like 20/25x) before they upped it to 100x, probably to reel in newbie gamblers. It's certainly extremely worrying how many people are misusing leverage, though.

You also forgot about the fee on takers against makers, if you make a trade you will save a lot in futures fees. Never go for cross margin trading on any of these exchanges as it will not just liquidate you in circumstances when markets go against you, but your entire capital will be at risk and will get swiped away from your hands if one wrong trade happens. I trade with a maximum of 20x but I keep isolated mode on, so if my trade even closes in aoss, it will not take my entire capital but just the USDT I allocated to that trade.

Yes, leveraged trading makes people to try new things out of excitement like they will be having very big capital to do whatever they want to in markets. They never think about its negative consequences and this is the simple reason why they all get busted in very short period of time itself.

I agree when traders do whatever they want without accessing risk management and buying/selling whatever they want to do at random price levels, trading simply turning as gambling.

Probably since Bitcoinica. Human nature....


On more boring markets, people just employ more leverage so they can blow up their accounts just as quickly. 200x is normal in forex. No matter what instrument, most traders employ terrible risk management and too much leverage.

That's the real reason trading appears like gambling. 9 out of 10 traders literally treat it that way.

How did plunging straight into leverage become the norm?

It's completely batty to arrive in crypto knowing nothing and deciding you're going to 'make it' by non leveraged trading, let alone adding that on top.

The dullest stock trader with years of experience stands an extremely high chance of losing on the dullest markets. What makes a total noob turning up to the biggest shitpit of all and running to the shittest platforms think they're going to master it?

Yes, this is the beauty of trading with leverage.
When you manage to make good money, you begin to believe in yourself. It works the same mechanism as with gambling.

First you win because everyone calculated correctly, then you win because you are lucky, but you do not notice this because you think that this victory is your merit.
You continue to play without noticing your mistakes and eventually lose.

Leverage trading always comes with high risk. Reading your story, I feel like sharing my own.

I made 100% profit by trading with ETHUSDT pair in binance futures in just 9 days. This really motivated me a lot and this is the point where I lost control on myself. on 10th day, I again shorted "x" number of ETH and that was the worst call of my trading history. The price started dropping and the time was not far when my liquidation price was crossed. I was careless at that point as I did not take the efforts to set the stop-loss and it made me lose my entire 100% profit which I earned in 9 days, in just a single trade. That is why you should never consider leverage trading as easiest part.

There are a lot of ups and downs which might even make you lose everything you have so only choose leverage trading if you have the skills.

That is why I compare leverage trading with gambling. We can see that a number of greedy people usually go for leverage trading with the greed to have immense profits in minimum time interval but with those huge profits comes huge risk. Leverage trading might even make our entire wallet balance to "ZERO" overnight if the price continuously moves in the opposite direction.

Crypto markets are high volatile and they might even make a move above $1000 in a single day which might give you huge profits if the direction is on your side but on the same hand you can imagine the risk associated here. Spot trading is always good but would need high capital whereas you can start with a lower capital with leverage trading and this might be a benefit of leverage. If you are wise, you would make huge profits with leverage.

To monitor, we have 1000s of way but to eliminate the dangers associated with leverage trading what you have? We cannot simply go forward it is a high risk -high reward way of trading. Because, in my opinion leverage trading is kind of unnecessary risk in the greed of high profits when we have sport trading for decent profits with low risk and more importantly with guaranteed peace of mind.

Alerts or reports or any kind of thing will not save you when market do a reverse. When market is complete unpredictable we must need some cushion to wait which is the exact thing leverage trading is not providing. No one could predict exact turning points to enter and to exit and when this is true, it is always highly recommended to stay away from leverage trading regardless of how advanced tools or apps are equipped with.

I have experience using leverage different from yours, I use a maximum of 10x for both long and short, but with high leverage the amount of capital I use will be less and will close the order in a short time. than.

Leverage trading is not advisable to anyone who enters to crypto, and I know many people that lose all of their money by leverage trading. It's very easy to lose there since one-second dump might get you liquidated, or just simply opening your trade more than a day will make your funds go to zero.
Personally, I tried it, and it didn't end well, I just lost my money and quit on trading for some time, I think there's a lot of people having a big profit when they are doing leverage trading, but most of the newbie is going to be liquidated there lol.

Just a tip: Stay out of leverage trading if you are just new in trading.

Personally I am not doing Leverage trade. Because its quite complicated calculations from normal trade. You might loss your capital or you might win big just like gambling. One of my known person had tried leverage trade on Bitmex, but he had lost everything there although amount was very small. So for beginner, leverage trade isn't appropriate. For me, still now I don't have any intention to do leverage trade even on Binance. I am just away from trading for few months and holding some shitcoin (Lol). Just remember, where you have chances for big win there also risk involved for big loss, you have to be ready for loss as well.

The most important advice that you gave OP is that you should use only small leverage. For you it's 1x -3x but experienced traders say that you can go to 5x if you want but you shouldn't go higher because it's too risky and it's too easy to get liquidated instantly even when the move is relatively small.

Also if you have the money to keep your position on a 5x leverage it's just better to bet all of it on 1x than bet on 5x and hold the rest to keep the position. People don't understand it and usually lose money by setting high leverages or having not enough money to maintaine the position.

I trade on Binance with maximum 125x leverage and recently did a couple of hundred percent gains a few times.
Quite nice.
 
But it needs some risk management, don't use too much of your money with cross margin.
 
In my opinion isolated margin mode is instant margin call. Cross margin gives some room for letting the price go against you without a margin call before going back to positive again.

I also do never use any stop losses because of stop hunting. It cries for instant position closure with a loss.
 
But everyone like he wants it.
 
I have traded on Bitmex before with 100x leverage only and my main problem was not the risk. It was getting in a position with limit orders, since it only went up $0.50 for a long time in sideways times.
With Binance I mostly do market orders, since my balance can afford such a little hit. I abandoned the "limit only for position opening"-train since I switched to Binance. Seemed way more fun in these volatile times to get in a position asap.
But for the people who like limit orders: Binance is much easier to get a position opened. Much more volatile. You can get in a limit opened position there very quick. Not as quick as a market order but still quicker than on Bitmex. 
  
(I am ready to get flamed to death right now, go ahead. )
  
By the way I come from trading times from 2013/2014 when OKex was named OKCoin and they had only 20x leverage. Kraken only had 5x. And BitMEX was the hot shit back then.
Those have been funny times I am telling you. Before I could buy on any exchange I panic bought my first Bitcoin on eBay haha. Way below $500, way below that.... I think I mined my first BTC in 2012 or 2011 or something.
Anyway getting a little off track with my text here.