Trading with leverage - page 7. | Bitcointalksearch.org

frank07a

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Quote from: abrahamtownsend on October 26, 2021, 10:56:39 PM

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.

I agree with you, but it seems to me that there are more cons than pros. I traded using margin trading on Binance about a year ago, but at this point I was under a lot of stress. If anyone is interested, then on this page is a list of the most popular exchanges with access to margin trading.

Zilon

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Bitcoindata.science

Quote from: abrahamtownsend on October 26, 2021, 10:56:39 PM

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.

Even with tighter stop loss leverage is still risky. I scalp majorly when I trade using leverage because the market volatility increases chances of losses if the market goes against the trend. leverage is trading on a borrowed capital which means an increased lot size. And with leverage just the same way we double our profit same way the losses comes

Oshosondy

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Gamble responsibly

Quote from: MIner1448 on October 27, 2021, 03:08:22 AM

Trading with leverage is a very dangerous thing for a beginner, especially for a gambler, because if you try it once, you can't pull everything off.
As a beginner, I was losing my deposits, trading with a leverage of x10, x20, but I realized that it was necessary to trade with a maximum of x5, and it would be hard to stop.

Trading with leverage is very risky, but why using gambling? Anyone that is making use trading as gambling will not even gain but lose and lost more and more if not having the knowledge and experience about trading, even using no leverage is not meaning someone can not still lose.

5x leverage is not bad at all, but it is very possible someone can lose the whole money during volatile market if the price go against the position taken by the trader.

Quote from: crwth on October 27, 2021, 05:18:34 AM

I think it doesn't matter when you have leverage or not as long as you know what it's for and how it can affect your trading journey ahead of you. Most of the time, people don't understand and see how important it is to consider leverage and manage it correctly. It's almost always going to be abused at first, and you will get liquidated. It's crucial to know your liquidation limit with your capital and always understand that it's always going to be like that.

If you don't learn it, you can gamble in casinos instead of the trading exchange. It depends on the person on how it's going to be used.

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.

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.

lalabotax

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In my personal opinion, trading with leverage in Margin trading or Future is very risky. ANd the risk is higher than trading on the spot.
I know that the earning or profits are very promising, but the higher profits, of course, higher risks.
We can use the stop-loss feature, but if we also don't know the exact way to set up this, we may also have the risks.

Of course, every trading will have different risks and also everybody has their pons and cons.
As a beginner, I will prefer only to trade on the spot market although it still has risks but at least fewer risks.

JeromeTash

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Quote from: abrahamtownsend on October 26, 2021, 10:56:39 PM

. 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.

Nope, it's the very last option for beginners, or else they will even lose all the Limited capital they have in an instant because they don't know how the market works or the trading basics.

Quote

. 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.

With the very volatile crypto market, tight stop losses will definitely lead to a very low win rate. Not recommended.

Mauser

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Quote from: abrahamtownsend on October 26, 2021, 10:56:39 PM

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.

I am not using any leverage when it comes to trading. In the past I traded some futures with friends but only short term. The higher risk for trading on margin was not for me. You said that higher exposure we get through leverage is a positive thing for trading, that is only true when the market moves in our direction. When we are losing the leverage will make our losses even worse because we still have to repay the loan in the future. That is why I would never recommend new traders to work with leverage. Even when using tight stop losses there is always risks involved to lose more money. Even experts in trading who know technical analysis very well can get hurt with leverage. Trading is not a guaranteed success, no matter your experience level. Unforseen risks like a market crash can be devastating when using leverage. In my opinion there are two ways to trading, either you try to maximise your returns, at which point leverage can be helpful, or you try and minimise your risk for a certain amount of return. These days I am trying to focus more on minimising risks.

Hippocrypto

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Quote from: abrahamtownsend on October 26, 2021, 10:56:39 PM

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.

I think it doesn't matter if you have using leverage or not as long as you know what it is and how it can affect your trading journey ahead of you. Leverage trading as far as I know, in the most basic sense, is any type of trading that involves borrowing money or otherwise increasing the number of shares involved in a trade beyond the number of shares you could afford when paying in cash. It’s not a bad thing to trade on leverage if you know what you’re doing and understand the risks. But if that’s not the case, it’s extremely risky and you could potentially lose a lot more than you can afford to. Trading has a lot of risk that's why we need to be more careful on it.

Zackgeno96

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Quote from: MIner1448 on October 27, 2021, 03:08:22 AM

Trading with leverage is a very dangerous thing for a beginner, especially for a gambler, because if you try it once, you can't pull everything off.
As a beginner, I was losing my deposits, trading with a leverage of x10, x20, but I realized that it was necessary to trade with a maximum of x5, and it would be hard to stop.

It's not recommended for newbies especially if they don't master the risk management. That's what will happen to any traders who don't know how to manage the risk and they just rely to luck and will ended up broke. I use high leverage even though I'm not a professional trader but I only use it if I'm really confident with my technical analysis.

crwth

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I think it doesn't matter when you have leverage or not as long as you know what it's for and how it can affect your trading journey ahead of you. Most of the time, people don't understand and see how important it is to consider leverage and manage it correctly. It's almost always going to be abused at first, and you will get liquidated. It's crucial to know your liquidation limit with your capital and always understand that it's always going to be like that.

If you don't learn it, you can gamble in casinos instead of the trading exchange. It depends on the person on how it's going to be used.

tbct_mt2

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The market just crashes 1 hour ago. It is a good example you can take into consideration and answer the question by yourself. Whether you should trade with leverage. What leverage to use. How much the capital for leverage trading is in your total capital. Cross or isolated collateral margin trading.

If today, you got a margin call in the last 1 hour, the answer is You should stop trading with leverage. If you are lucky and were not liquidated today, you will be liquidated in the future if you won't improve your trading skills.

MIner1448

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Trading with leverage is a very dangerous thing for a beginner, especially for a gambler, because if you try it once, you can't pull everything off.
As a beginner, I was losing my deposits, trading with a leverage of x10, x20, but I realized that it was necessary to trade with a maximum of x5, and it would be hard to stop.

Oshosondy

legendary

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Gamble responsibly

Quote from: abrahamtownsend on October 26, 2021, 10:56:39 PM

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.

Trading is very risky, common spot trading still leading to losses if not talked about leveraging, leveraging increase the risk. Even going for higher leverage makes the risks higher and new traders that are vulnerable to loss are the ones that like higher leverage.

Quote from: abrahamtownsend on October 26, 2021, 10:56:39 PM

Lesser risk when you set tight stops and trade smaller amounts.

Tight stop loss has advantage and disadvantage, do not expect the position opened to alwas first go in the direction you analysed it to go, it can first go the opposite direction and then favor your direction later.

Quote from: abrahamtownsend on October 26, 2021, 10:56:39 PM

The biggest disadvantage obviously is the extreme volatility of the market which can magnify losses as much as it can increase profits through leverage.

Only when the price is not in the direction of the position, that is why leveraging is disadvantage, there are still chances that the price of the coin taken to retrace.

Quote from: abrahamtownsend on October 26, 2021, 10:56:39 PM

How many of you here are using leverage to trade crypto, and how much,

Leverage trading significantly got me into trouble after many months of experience, even two years of experience, the better is to use 2x leverage but the best is to never use leverage.

mk4

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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.

abrahamtownsend

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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.

Topic: Trading with leverage - page 7. (Read 717 times)