Trading Leverage - page 4. | Bitcointalksearch.org

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Quote from: poodle63 on April 21, 2024, 10:07:37 AM

...it is helpful for those that can take advantage of the feature but might be a disaster for people that are greedy only thinking about profit they gonna get not thinking about the loss they might endure due to irresponsible use of the leverage feature.

No matter how corny it may sound, but if risk management is not followed, then you will lose your money anyway. And it should be understood that if someone risks the entire deposit in the hope of getting a big profit, if the price moves in the opposite direction to his expectations, his position will be liquidated by the exchange.

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Quote from: Etranger on April 21, 2024, 02:34:19 PM

Quote from: Huppercase on April 21, 2024, 02:28:31 PM

Leverage trading is like gambling, there are people that are making from the gambling and we have more people losing, it's the same logical way leverage trading does but the exchanges are not the ones making the money.

I would not compare leverage trading with gambling. In my opinion, gambling is more tied to luck and chance, while trading is a more rational, calculated activity. Leverage increases risks, no doubt, but the essence of trading remains the same. If a person trades carefully and prudently, then he will do this, with or without leverage.

While leverage makes trading riskier, but we all know that if you’re skilled on it, you will also gain higher chances of making a larger income, something that gambling can’t guarantee. So I also won’t agree that using leverage into trading falls into gambling, except if you are trading from a gambler’s point of view. With that, you will definitely end up with huge losses, no doubt.

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Quote from: Etranger on April 21, 2024, 02:34:19 PM

I would not compare leverage trading with gambling. In my opinion, gambling is more tied to luck and chance, while trading is a more rational, calculated activity. Leverage increases risks, no doubt, but the essence of trading remains the same. If a person trades carefully and prudently, then he will do this, with or without leverage.

Gambling and leverage has some similarities to some extent. Whatever decision you make in gambling, the outcome is not on what you expect it to happen, the entire outcome depend on what happen in the field(for sport bets) and if you do the comparism with leverage trading, when you place your position either long or short, you don't have the final say on what will happen later, it's the market move that will decide. So playing this kind of risky games means you are hoping it happen in your favour which is pure gambling.

Spot trading is different from leverage trading, the risk control in spot trading is far less than leverage trading depending on your leverage size, the money you are dying hard to make, if you are patient enough you can make it spot trading. It's all about been patient and buying at the right time. If anyone has bought some chunk of Bitcoin at $20k with good amount, I see no reason why someone will be fighting to long/short market at every opportunity.

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The higher the leverage the more you're crossing into gambling territory.
2x - 5x is doable if you're really into this and want to make some money fast, or lose it fast. People who use 20x and more are just gambling because there's no way they can predict if in the next hour the price will be 1% higher or lower and when a very small move can liquidate you you're not relying on indicators, but rather on luck. Why would you risk everything if you can hold your 1x or 2x position for another month and make money anyway, because bitcoin is trending up in the bull market so it's going to attack higher prices eventually. Don't be hasty or you'll lose.

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Quote from: Huppercase on April 21, 2024, 02:28:31 PM

Leverage trading is like gambling, there are people that are making from the gambling and we have more people losing, it's the same logical way leverage trading does but the exchanges are not the ones making the money.

I would not compare leverage trading with gambling. In my opinion, gambling is more tied to luck and chance, while trading is a more rational, calculated activity. Leverage increases risks, no doubt, but the essence of trading remains the same. If a person trades carefully and prudently, then he will do this, with or without leverage.

Huppercase

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Quote from: alastantiger on April 16, 2024, 05:12:15 PM

In life, leverage is good as it helps to help us accomplish a goal faster. But in trading, leverage in trading is clearly a bad deal. It messes things up for both the traders and the market. So my question is why do exchanges still offer them. They keep pushing it to traders like favourite snack?

You see the way leverage can help you in life, the same way trading can help you maximize profits but then you have you to do it in a coded way that it wouldn't back fire. In real life, if you want to leverage I'm not sure if you would do more than your capacity. For instance borrow funds to gamble because you think you can win, take a huge loan to finance a new business that you aren't too experience in, all this can go sour. The same logic goes with trading when you trade with over leverage position because you want to make quick money.

Leverage trading is like gambling, there are people that are making from the gambling and we have more people losing, it's the same logical way leverage trading does but the exchanges are not the ones making the money. If you lose in leverage, there is another trader that has made money from your losses. What the exchange get is the trading fees and nothing more. As long as the demand keeps coming from traders, they will continue to offer the services seamlessly.

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Quote from: synchronym on April 21, 2024, 01:54:06 AM

There are many newbies who don't have enough knowledge about trading and it's not right to bother with levers. Those who are new to trading must first gain enough knowledge about trading if you don't know enough about trading then you will never get success through trading so first you need to know enough about trading and gain knowledge then start trading. Of course you have to have a long term plan before trading. If you can keep a long term plan and check the market in trading then you can definitely get success through trading.

This is definitely a less risky path, but unfortunately, or fortunately, who knows, many things can only be learned through experience. Even more: from one`s own experience. You can be an incredibly successful trader a thousand times on paper or on a test account, but until you start trading with your real deposit, you won’t know much about yourself. And this knowledge directly affects the trading result.

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You know that it depends on the situation. You can take advantage of being able to have more capital in a trade when you are doing that. It would just depend on the risk management that you have and you should take it with full consciousness so you could take advantage of the situation. It's more likely to push yourself in a way to boost possible earnings but it can be a double-edged sword as well.

Can you pinpoint how exchanges "push" it towards traders? Mostly it's unlockable if you agreed to some warnings that it's dangerous if it's not done with caution.

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Quote from: synchronym on April 21, 2024, 01:54:06 AM

There are many newbies who don't have enough knowledge about trading and it's not right to bother with levers. Those who are new to trading must first gain enough knowledge about trading if you don't know enough about trading then you will never get success through trading so first you need to know enough about trading and gain knowledge then start trading. Of course you have to have a long term plan before trading. If you can keep a long term plan and check the market in trading then you can definitely get success through trading.

Hmm, well bro the fact is people just don't pick up the things, because as you know in talking about something and executing something there comes a huge difference, and 70% + people fail in execution about what they commit.

TBH, Newbies these days follow YouTube influencers and their primary motive is always to sell the premium signal group courses, newbies fall into the profit screenshots of those influencers, people believe in them because many people are following them but they are now aware of the reality that most of those people are thinking in the same way as they are. Who will not get attracted to their marketing strategy that one user joined today and made 1000 bucks and they don't know how much he invested if a person who invested and took a $100k trade with his 5k investment on 20x and made 1k out of what's the big deal in the this in the bull run 10% to 30% profit is not a big deal in the bullish crypto market.

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Quote from: tvplus006 on April 21, 2024, 08:05:13 AM

Quote from: God bless u on April 19, 2024, 07:59:11 AM

The simplest answer to this is that I think leverage is the best way to earn good profits. I'm talking about the profits that exchanges earn by charging fees on your trades. When you open a trade an amount of fees according to leverage set is charged by the exchanges and that's why they're offering them...

If only the exchange made a profit from using leverage, then there would be no traders who would use it. So it is beneficial not only for the exchange, but also for the trader, who can get additional profit thanks to leverage.

it does indeed 100% helpful when we are short of capital but want to make big trade anyway, instead of just stuck with low capital and make all the profit got eaten away by the fee due to the fact that if we have low capital we might need to try find opportunities between price movements, with leverage we can get good profit so long we are so sure that the market gonna be turning like what we've predicted then we might get good amount of profit with just low capital alone.
it is helpful for those that can take advantage of the feature but might be a disaster for people that are greedy only thinking about profit they gonna get not thinking about the loss they might endure due to irresponsible use of the leverage feature.
overall its indeed helpfuil.

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Quote from: alastantiger on April 16, 2024, 05:12:15 PM

In life, leverage is good as it helps to help us accomplish a goal faster. But in trading, leverage in trading is clearly a bad deal. It messes things up for both the traders and the market. So my question is why do exchanges still offer them. They keep pushing it to traders like favourite snack?

Leverage is never a bad feature because it helps trader with low capital to borrow more capital for their trade in exchange for the risk of liquidation which scalable depending on the amount of leverage which traders will use.

You will never encounter a serious problem on leverage if you use it properly and avoid using high leverage on a very volatile assets. There’s also a stop loss feature that will save you from severe losses on case the markets doesn’t move according to your trading plan.

Overall, leverage is a handy trading tool if you knew how to use it properly.

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Quote from: God bless u on April 19, 2024, 07:59:11 AM

The simplest answer to this is that I think leverage is the best way to earn good profits. I'm talking about the profits that exchanges earn by charging fees on your trades. When you open a trade an amount of fees according to leverage set is charged by the exchanges and that's why they're offering them...

If only the exchange made a profit from using leverage, then there would be no traders who would use it. So it is beneficial not only for the exchange, but also for the trader, who can get additional profit thanks to leverage.

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Quote from: synchronym on April 21, 2024, 01:54:06 AM

There are many newbies who don't have enough knowledge about trading and it's not right to bother with levers. Those who are new to trading must first gain enough knowledge about trading if you don't know enough about trading then you will never get success through trading so first you need to know enough about trading and gain knowledge then start trading. Of course you have to have a long term plan before trading. If you can keep a long term plan and check the market in trading then you can definitely get success through trading.

Naturally those who are new must have less knowledge in the trading sector. But among those who are new to trading, those who have money and don't mind losing it can move forward first. On the other hand those who are new to trading even though they have little capital but that is their only capital then they lose money in the initial stage and lose confidence from trading. Personally I think only a long term plan, patience, time, skill acquisition are part of learning to trade but of course you need to practice and gain experience with money. So if all the above are perfected you will go to a stage and get success in trading.

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There are many newbies who don't have enough knowledge about trading and it's not right to bother with levers. Those who are new to trading must first gain enough knowledge about trading if you don't know enough about trading then you will never get success through trading so first you need to know enough about trading and gain knowledge then start trading. Of course you have to have a long term plan before trading. If you can keep a long term plan and check the market in trading then you can definitely get success through trading.

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Quote from: Adbitco on April 18, 2024, 07:03:13 PM

Do you think everyone makesl lose I think only those who aren't knowledgeable enough to know what they are doing keeps calling into prey for this, Thus if you don't make profit doesn't mean others aren't making profit and between, your lose is profits for the market or to another trader while your profits is another traders lose there the market is known to be called " survival for the fittest" if you aren't strong and smart enough you would keep losing.

right? leverage exist for a reason, people with small capital wanted to have that opportunity to turn their peanuts capital into some good profit, because imagine trading $10 it will take years before you can even make profit that without even taking into account the fee, with leverage such as 25x the capital easily becomes big, the problem that most of people have with leverage trading is that they think they should just go big with their capital and leverage it, thats in its own isn't really true, people can just use small capital with high leverage just to test out the market.

the leverage feature also not enforced to the people anyway it just to give the opportunity for people that are so sure with their trading strategy.
even in stocks and forex there are leverage so its not really a feature that is alien to most of us here, i think leverage can work so good if combined with great strategy.
but i can also be double edged swords too so it depends like many have stated don't blame exchange for providing features.

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Quote from: alastantiger on April 16, 2024, 05:12:15 PM

In life, leverage is good as it helps to help us accomplish a goal faster. But in trading, leverage in trading is clearly a bad deal. It messes things up for both the traders and the market. So my question is why do exchanges still offer them. They keep pushing it to traders like favourite snack?

The simplest answer to this is that I think leverage is the best way to earn good profits. I'm talking about the profits that exchanges earn by charging fees on your trades. When you open a trade an amount of fees according to leverage set is charged by the exchanges and that's why they're offering them.

Leverage is best for the platforms offering them but it's worst for both the trader and the coin that is being traded on. But due to the factor of greed people take a punt and these kinds of people don't want to listen to anyone until and unless they lose a heavy amount of money.

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Quote from: GreatArkansas on April 18, 2024, 08:04:30 PM

Trading itself is already risky, even without any leverage, it's already risky.
Trading with leverage is like the next level of trading where the risk is higher but the rewards are high also.

So for me, we must not blame exchanges here because at the end of the day, it will be up to us if we trade with leverage or not.

Without leverages, people can lose nearly all money if they bought Terra LUNA token in 2022 Terra and UST crash. The death spiral of Terra and its algorithmic stable coin can kill any trader even no leverage is used.

That is a big lesson and can be used as a reminder that "Only trade with money you can afford to lose it at any cost" because in trading, black swan event can occur anytime.

Risk is bigger with altcoins and very fortunately, if you pick Bitcoin, you can reduce risk from trading. With Bitcoin, no algorithm that can trigger a death spiral like LUNA and its algorithmic stable coin UST.

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Quote from: alastantiger on April 16, 2024, 05:12:15 PM

In life, leverage is good as it helps to help us accomplish a goal faster. But in trading, leverage in trading is clearly a bad deal. It messes things up for both the traders and the market. So my question is why do exchanges still offer them. They keep pushing it to traders like favourite snack?

Trading itself is already risky, even without any leverage, it's already risky.
Trading with leverage is like the next level of trading where the risk is higher but the rewards are high also.

So for me, we must not blame exchanges here because at the end of the day, it will be up to us if we trade with leverage or not.

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Quote from: Bitcoin_Arena on April 16, 2024, 06:11:23 PM

Quote from: alastantiger on April 16, 2024, 05:12:15 PM

In life, leverage is good as it helps to help us accomplish a goal faster. But in trading, leverage in trading is clearly a bad deal.

The other trader who made massive profits on the otherside would disagree. It's not a bad deal to them. What is a bad deal is your poor trading decision. The money makes it's way to the smart traders from those who made poor decisions. That's how markets work.

The exchanges mostly benefit from the trading fees from all traders using their platform.

It only gets bad if you are struggling in trading, but if you have high experience and gained sufficient knowledge in trading, you will definitely look at leverage as a bigger opportunity to chase higher potential profits. That’s why we have seen lots of traders still want to learn and suicide in using leverage, because they all know it can make your trading instantly massive.

On part of the exchanges, the fact that they are getting substantial profits from it, surely they will continue to attract traders to try trading with leverage. At the end of the day, your decision will still be greatly influenced with your trading preference.

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Do you think everyone makesl lose I think only those who aren't knowledgeable enough to know what they are doing keeps calling into prey for this, Thus if you don't make profit doesn't mean others aren't making profit and between, your lose is profits for the market or to another trader while your profits is another traders lose there the market is known to be called " survival for the fittest" if you aren't strong and smart enough you would keep losing.

Topic: Trading Leverage - page 4. (Read 926 times)