I’ve experienced leverage trading several months ago. I usually do 5x to 10x for that, but yes it’s much more riskier than the traditional spot trading. If you are a beginner or newbie in trading, this isn’t for you. Even me that has some experience in leveraging trading, I had more losses than gains. This is only for those who have the emotional guts to lose an amount that they can afford to invest and trade.
10x leverage is too high and if the market is volatile, it can lead to liquidation. 5x leverage is still fear but not that good and also still very risky and can lead to liquidation too if the market is very volatile against the direction taken. What I have noticed is what you said, it is better not to leverage at all, but having 2x leverage is not bad for me, before it can lead to liquidation, it will be hard. But the question is, is the person a good trader? Because even spot trading and no leverage trading can still lead to losses for many people especially new traders. 
Topic: Trading with leverage - page 6. (Read 717 times)
Trading with leverage is profitable when your capital is big, because if your capital is just $10, you're wasting time and your TA. I mean if you successfully made a profit through your TA using your $10 with only 20x leverage on futures, you'll only get a little, such a waste of opportunity in my opinion unless you are a very patient perseverance person, then go for it.
But if you've got a pretty good capital in Trading, using 5x-10x leverage while betting 30-40% of it is good by putting the right stop loss and take profit with your TA.
But if you've got a pretty good capital in Trading, using 5x-10x leverage while betting 30-40% of it is good by putting the right stop loss and take profit with your TA.
Nice understanding and some analysis but I think your percentage of staking is high whether with leverage or no leverage. 5 to 10x leverage with 30-40% of it is high. Leverage isn't your money, it is considered as a loan that you first service before your capital meaning anything can happen despite the assurance you see in your trade order. Meanwhile leverage for small capital or big capital is the same is to understand it
If you are new to market leverage is not a good option, it is suitable for advanced traders if you are seeking experience and actual market experience you can have that in spot trading the only difference I see is that you will lose instantly your money in leverage trading if you don't have any actual trading experience.
Many traders with intensive training, after returning from such training, leverage seems to have been ranked by quite a few people as the hardest foods to swallow in the trading market, they have arrogance about knowledge but also because their manners are serious and know how to admit right and wrong, they appreciate risk and know leverage is not always the game for them. Casual and beginner traders are not qualified to participate in such courses and when the knowledge base is weak while eager to show off, all fail very quickly with the leverage
Trading with leverage is profitable when your capital is big, because if your capital is just $10, you're wasting time and your TA. I mean if you successfully made a profit through your TA using your $10 with only 20x leverage on futures, you'll only get a little, such a waste of opportunity in my opinion unless you are a very patient perseverance person, then go for it.
But if you've got a pretty good capital in Trading, using 5x-10x leverage while betting 30-40% of it is good by putting the right stop loss and take profit with your TA.
But if you've got a pretty good capital in Trading, using 5x-10x leverage while betting 30-40% of it is good by putting the right stop loss and take profit with your TA.
First of course is the bigger market exposure. It seems like the right time to cash in on the crypto market, and for many beginners with limited capital, leverage seems to be the only option.
Beginners + leverage + limited = Margin Calls/Liquidations.Plus it’s not the only option. You can find a job, save a portion of your salary in Bitcoin. I believe you would have a higher probability of long term success with that than gambing with leverage. Think where you will be 10 years from now if you keep gambling with leverage.
Leveraged market might suit the traders who are able to accurately predict the market directions in short term. Such traders already might have big capital and still go for availing leverage to maximize their profit levels when trading on multiple assets.
OP:
When you are having small capital then going for leverage with all 100% of your capital might lead to disasters on a small correction on your expected market direction. Only when you gain experiences then you may start think about leverage trading.
Here are the pros I could sum up:
First of course is the bigger market exposure. It seems like the right time to cash in on the crypto market, and for many beginners with limited capital, leverage seems to be the only option.
First of course is the bigger market exposure. It seems like the right time to cash in on the crypto market, and for many beginners with limited capital, leverage seems to be the only option.
Beginners + leverage + limited = Margin Calls/Liquidations.
Plus it’s not the only option. You can find a job, save a portion of your salary in Bitcoin. I believe you would have a higher probability of long term success with that than gambing with leverage. Think where you will be 10 years from now if you keep gambling with leverage.
If you are new to market leverage is not a good option, it is suitable for advanced traders if you are seeking experience and actual market experience you can have that in spot trading the only difference I see is that you will lose instantly your money in leverage trading if you don't have any actual trading experience.
I'm not sure if what you are saying is right, even if you have limited fund you will still be able to trade on spot trading, learn the same lesson you can have on the leverage and earn profit too and last you both can be risky because of the volatility of the coins. So if you are newbie and you don't have yet experience it is much better to stay on the spot market.
Even with tight stop losses, trading with leverage is still dangerous and would normally be not recommended. Trading is something you don't want to gamble with, even if you do know how to trade. After all, no amount of TA could increase your chances of making a successful trade to 100%. It's really not worth the risk. Imo, leverage trading is only done by impatient people which shouldn't be imo, trading is something that would require time and patience, it isn't something that should be done quickly just because you want to.
I’ve experienced leverage trading several months ago. I usually do 5x to 10x for that, but yes it’s much more riskier than the traditional spot trading. If you are a beginner or newbie in trading, this isn’t for you. Even me that has some experience in leveraging trading, I had more losses than gains. This is only for those who have the emotional guts to lose an amount that they can afford to invest and trade.
I am presently doing leverage trading with 3x Isolated margin with binance, I can't cope with leverage of 10x, 15x etc because of the risk involved and fear of liquidation though stop lossing a leverage trade is the best way out of getting liquidated, however for a trader to trade with a high leverage such a trader must be highly experienced and skillful in the art, above all newbies are always advice to start with spot trading so as to pass through the learning process that is how I also started my trading journey. It will be no problem using limited funds to use leverage trading, but the problem is how good your skills in trading are because that will determine how you can profit from the trade. If you can control your trade by using a stop loss and only taking profit when you think you can make a profit, you can increase your funds using leverage trading and you could get a chance to make a bigger profit. As we know, using leverage trading will not guarantee you to make a big profit quickly. You need to have high skills in trading so you can analyze deeper in a short time.
Binance, Bitmex, Kucoin have leverage trading to start with them and I advise you to use Binance as Binance is one of the best exchanges with leverage trading.
Binance, Bitmex, Kucoin have leverage trading to start with them and I advise you to use Binance as Binance is one of the best exchanges with leverage trading.
Thank you for echoing my thoughts!
While having tight stop losses can definitely help decrease risk, it's definitely going to increase the likeliness of you losing trades by orders of magnitude. Leverage is simply not the best way of learning how to trade. It's mostly just used as a sort of 'Hail Mary' of people with low amounts of money, in the hopes that they could gamble away their small amounts into good amounts.
And leverage isn't the only way of winning big. You can focus on small-mid caps to potentially have higher potential price increases. And yes, these are risky, but not as risky as leverage trading for the absolute trading newbie.
And leverage isn't the only way of winning big. You can focus on small-mid caps to potentially have higher potential price increases. And yes, these are risky, but not as risky as leverage trading for the absolute trading newbie.
Yes I would definitely not recommend an absolute newbie to use high leverage, but those who have a basic understanding of the market and know technical analysis can surely benefit from it.
I think trading future is not a good idea for a beginner because he or she might endup losing money, have been in Cryptocurrency for years now which mostly am into spot trading but sometimes I trade future which yesterday I got liquidated and I used just 5 laverage which is very low but still got liquidated, I believe future trading is not for beginners so perfect yourself with normal trading first before thinking about future.
Yes exactly. Trading with leverage is very risky although we may know how to set SL or CL.But in fact, many newbies are also joining this in order to expect getting big and high profits very quickly. This is not a good mindset for most newbies.
However, if we have been very common in trading with leverage, it will not give a big matter and will give us very promising profits. But of course, higher profit will also require higher risks. As long as we can manage and control the risks, we know the market analysis and also strategy and we are ready with the risks, I think it will be okay for us.
But once more, not for those who are on trying only moreover beginners.
I think trading future is not a good idea for a beginner because he or she might endup losing money, have been in Cryptocurrency for years now which mostly am into spot trading but sometimes I trade future which yesterday I got liquidated and I used just 5 laverage which is very low but still got liquidated, I believe future trading is not for beginners so perfect yourself with normal trading first before thinking about future.
Here are the pros I could sum up:
. First of course is the bigger market exposure. It seems like the right time to cash in on the crypto market, and for many beginners with limited capital, leverage seems to be the only option.
. Lesser risk when you set tight stops and trade smaller amounts. You don’t risk all of your capital and as you gain experience, learn how to navigate the leveraged trading market.
The biggest disadvantage obviously is the extreme volatility of the market which can magnify losses as much as it can increase profits through leverage.
How many of you here are using leverage to trade crypto, and how much, and through which broker? Let’s bring to light the many unknown aspects of crypto trading, besides what is known - that you screw things up when you don’t understand technical analysis and blindly enter and exit trades.
Just a reminder just because you set a stop loss at a certain price it does not mean that it is going to be executed at exactly the price you specified, there is something called slippage which is the difference between the price you expect to sell and the actual price at which you sell, this means that in a moment of great volatility you could end up selling for a price way lower than what you thought, which means that just when you needed it the most the protection that you thought you had with the stop loss will not be there. . First of course is the bigger market exposure. It seems like the right time to cash in on the crypto market, and for many beginners with limited capital, leverage seems to be the only option.
. Lesser risk when you set tight stops and trade smaller amounts. You don’t risk all of your capital and as you gain experience, learn how to navigate the leveraged trading market.
The biggest disadvantage obviously is the extreme volatility of the market which can magnify losses as much as it can increase profits through leverage.
How many of you here are using leverage to trade crypto, and how much, and through which broker? Let’s bring to light the many unknown aspects of crypto trading, besides what is known - that you screw things up when you don’t understand technical analysis and blindly enter and exit trades.
When summarizing, the advantages are submissive to disadvantages which is the reason, most of this community members never appreciate about going with leveraged trading. Honestly spot trading is guaranteed for no losses when you are not hunting for targets. Simply, in trading environment, no losses is something incredible which is still possible with spot market long term trading; then why should anyone go for leveraged trading?
Let’s bring to light the many unknown aspects of crypto trading
By crypto trading, if you refer spot trading then I guess this discussion will have something useful for this community but at the same time, if you are intended about leveraged trading then I am sure only paid shills will fill this discussions with their non-sense.
I’ve experienced leverage trading several months ago. I usually do 5x to 10x for that, but yes it’s much more riskier than the traditional spot trading. If you are a beginner or newbie in trading, this isn’t for you. Even me that has some experience in leveraging trading, I had more losses than gains. This is only for those who have the emotional guts to lose an amount that they can afford to invest and trade.
for many beginners with limited capital, leverage seems to be the only option.
. Lesser risk when you set tight stops and trade smaller amounts. You don’t risk all of your capital and as you gain experience, learn how to navigate the leveraged trading market.
If your post is in any way meant for beginners to follow, then you shouldn't be advising that in quote ☝️. Leverage trading should be the last thing to ask a beginner to go into. Yes, it allows someone with limited capital access for more trades but once the loss comes you will regret ever going for it. Again, most veteran traders don't even use Stop Loss (this is bad though), let alone beginners who may not even know how to fix it. Spot trading is best fit for beginners, than leveraging. . Lesser risk when you set tight stops and trade smaller amounts. You don’t risk all of your capital and as you gain experience, learn how to navigate the leveraged trading market.
It will be no problem using limited funds to use leverage trading, but the problem is how good your skills in trading are because that will determine how you can profit from the trade. If you can control your trade by using a stop loss and only taking profit when you think you can make a profit, you can increase your funds using leverage trading and you could get a chance to make a bigger profit. As we know, using leverage trading will not guarantee you to make a big profit quickly. You need to have high skills in trading so you can analyze deeper in a short time.
Binance, Bitmex, Kucoin have leverage trading to start with them and I advise you to use Binance as Binance is one of the best exchanges with leverage trading.
Binance, Bitmex, Kucoin have leverage trading to start with them and I advise you to use Binance as Binance is one of the best exchanges with leverage trading.
Trading and gambling are two different things entirely, I am not saying someone can not do both together or choose the one he likes but they are different. I use the money I can afford to gamble, but I still put more to trading because gambling is riskier.
I know they are different things. I'm just saying to the OP that he could just go and gamble his money instead of trading because if you don't learn it, it's like you are just gambling. It's a suggestion with what the OP could do if he doesn't study it. It is good to manage leverage, the main cause of liquidation is the leverage used, many people are losing money and tired all because they are using leverage or using too much leverage. I started to trade future with 125x, I later know that even using 10x is too much and resulting to liquidation. There is nothing better than using 2x or not to leverage at all.
That's why it's better to understand and learn how it becomes like that and how it's being calculated. x125 is suicidal. x20 is okay, x10 is safe. That's just how I view it. As long as you have a very good spread and capital, you will be safe. Jump to: