Topic: Please someone help me do the math with leverage trading. (Read 45 times)
Nobody?
I already apologize for being unable to do the math myself.
I need help to figure out leverage trading with btc.
For the sake of the argument I own an account with Kraken of $10.000,00
The bitcoin price is also $10.000,00
I want to trade with 5x leverage.
So how do I calculate the maximum I can buy bitcoin for in order to trade with a 5x leverage.
I understand that if I buy bitcoin for exactly 10k I have no equity left, if the price moves against me.
Basically I cant figure out the margin requirements for a trade.
Say, I want to buy $6000 worth of bitcoin, with 5x leverage, so I am moving $30k bitcoin, but how much money, or equity must I keep on my account as margin requirements?
Please someone help me here.
I need help to figure out leverage trading with btc.
For the sake of the argument I own an account with Kraken of $10.000,00
The bitcoin price is also $10.000,00
I want to trade with 5x leverage.
So how do I calculate the maximum I can buy bitcoin for in order to trade with a 5x leverage.
I understand that if I buy bitcoin for exactly 10k I have no equity left, if the price moves against me.
Basically I cant figure out the margin requirements for a trade.
Say, I want to buy $6000 worth of bitcoin, with 5x leverage, so I am moving $30k bitcoin, but how much money, or equity must I keep on my account as margin requirements?
Please someone help me here.
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