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Hi. Today i want to tell my history at leverage in BITMEX and BINANCE and try explained what i have learndt. First: In most of the cases HIGH leverage is like a casino and the Exchange always will win. Anyway, at the start i don´t have won nothing, actually i loss more then 20% of my profit in only one '' long ''. But i realize is better perform operations (Short / long) maximun 1hour our 1/2 day (s), because if you dont do this you will lose so much at the tax and in the 'funding rate'. I realize that if you want to won USD you must have stop loss and stop gain, because without this in most of case you will lost a lot of money and this lost could be avoided. In my opinion the maximum of Levels you need is 3x, i usually use only 1x or 2x (it means I dont use leverage levels at this case '1x', but it is necessary if a want to short. If you are long without leverage '1x' is better just buy bitcoin at normal way, because in 'futures' or 'Bitmex' you will pay funding rate). One of the better ways to operate is look for suports and resistences, fibonnaci, Bollinger Bands, Moving average (50,200), and operate in charts of 15minutes and 1 hour. In my oppinion Binance 'now' is better then Bitmex, because 'now' you can operate in 'futures' with usd, not in btc like Bitmex. It means you can  trade btc and your usd't 'will be safe.




Ps: I'm sorry for any grammar mistakes.  :'(

One of the Major reasons traders make huge losses and get out of the market is Leverage

Newbies who are in trading for making huge money will most likely to take all leverage exchange provides , but newbies doesn't even think about risks leverage increases risks increases 

There are unlimited factors which drives market and that coupled with huge risks which trader cannot afford , he ends up with huge loss and kicked out of markets

I personally take 10times leverage and even less  when markets are bad

Do you have tried Huobi margin trading ? i think margin trading is better than Leverage model trade.
in margin trade, the margin call 130%, and its more safe than leverage trade, where you can lost easily just by flash pump or flash dump.
of course stop loss and stop profit is the best way to minimize your loss, dont forget to use it in Margin trade or leverage trade.

There's always a learning curve involved with leverage trading. It isnt as simple as vanilla trading and need a lot more thought processes behind it. You should never go all in on just 1 trade, to start with. How I do is, I have one primary long term trade and have multiple short term trades either to enhance my profits on the primary trade or to save it, if the market isnt kind.

Yeah, when they are doing leverage, new people do not realize that even a single 0.1% drop in price could mean ALL of your money gone. That is something needs to be specified a lot better because many people who are newbies and lost money because of it also doesn't know that it works like that. I had plenty of friends who have lost money on leverages all because they invested in the correct movement but it first did a small reverse movement before going to their movement.

One friend recently literally put 0.1 btc (a lot of money where I am from) on long futures for example when it was around 9.6k , now its higher so he should have made profit right? Wrong, dude literally lost ALL of his money because it first went back to 9.3k before going to above 10k, so he lost all his money instead of making thousands of profit.

I try to stay away from Bitcoin futures, simply because I don't like the way some platforms socialize losses among the winners, that's a god damn joke.

Because of this, I tend to just use BTC futures when a cash and carry opportunity arises, but I don't bother checking the charts anymore looking for these, simply because all my profits got wiped out by a socialized loss on OKEx one time.

Does anybody actually trade with 100x leverage? I have never gone about 25x because of how volatile the market is.

Well, your story is really good fun, thanks for sharing, but there is something I wish you could try, in the case of Bitmex, just use a 10x leverage, the reason is simple, in Bitmex first settle the big positions like 100x, 50x and 25x many times they go for 10x, the odds decrease, and on the part of Binance I have not tried leverage very well, however, it is not good to abuse leverage, because as you affirm it can clearly become gambling and it is not What is sought.

I currently trade on BitMEX, and I'm not a fan of socialized losses either, but I trust in their insurance fund and aggressive liquidation engine to prevent any sort of incident like what happened on OKEx, though it could very well happen on any platform even despite the systems in place to prevent such events.

I know some people who occasionally use high or 100x leverage, but those people typically use it as pretty much a gamble more than with serious trades, or they stop the trade out before it hits its (very) close liquidation price. I've gone up to between 25-50x on rare occasions with a small position as well, but I've never ridden any positions with this high of a leverage to liquidation.

Yes, it is boring.

It's like a gambling that the house always win but the only difference is that we have basis here in leverage trading. Our entry is based on our readings on technical analysis.


While it is true that it is better to be do some scalping because the funding fee will just gonna eat your fund. And i do some of scalping everyday, with 5-10x leverage and setting up stop loss every trades. Since scalping is too risky because there are too many sideways and unexpected happenings.


Supports and resistance are very important in leverage trading. Before, I used BB, MACD and RSI. But I have changed my indicators to EMA and RSI only. So far, those indicators I am using right now is profitable.

There's only 2 ways to address liquidations when there isn't sufficient market depth: socialized losses, or auto-deleveraging like Bitmex employs: https://www.bitmex.com/app/autoDeleveraging#Overview-of-Auto-Deleveraging-ADL

I've experienced both. I'm not sure which I prefer, honestly. It's pretty rare either way, only happens during insanely high volatility. That's the price we pay for access to high leverage.


Only pure gamblers. My bread and butter is 3-5x. Maximum 10x, which is reserved for very low risk entries.

Pretty sure nobody trades at 100x on Bitmex or at least not profitably. The 100x is really skewed towards Bitmex to protect themselves against losses that your trade will get liquidated earlier because of the high maintenance margin required. Basically on high leverage a large portion of your initial margin is the maintainance margin. So instead of a 1% loss cleaning you out, its only 0.5% which happens every few hours on BTC trading.

When you get liquidated, some of your funds go to the insurance fund and rest to the other party. Since the insurance is growing everyday, its shows you how many newbies are getting rekt due to this method. Just use 5-10x leverage max.

100x leverage will be possible when market do a jump on your direction. Or you might have a reserve funds to add more when market fluctuates (when you add more funds, it will be no more 100x leverage as your are diluting your capital). Leverage trading kills all the trading plans as it will not let you wait until market turns positive. People eye big profits due to leverages but never calculate how long they could withstand on negative direction.

I do see few traders leaving some funds for escaping from auto-square-off but when holding for days, they need to pay interests for the used leverages which again makes spot trading a heaven to make use.

If gambling houses offer leverage then we can try it by fixing a player but not sure how to do the same with markets. If there will be a chances for insider news from exchanges then you may opt for leverage to see enormous profits in short time.

God! Margin is really dangerous.

In this case I highly recommend this risk monitor and stats reporting assistant. This is the only app I use and it helped me to increase my profit a lot.
It controls risks at several accounts (not like a stop loss, it has more options) and makes advanced reports. So you always see where you lose and what to improve

Here it is  - https://www.bitinsure.com/

Looks like this:

https://i.postimg.cc/zBMSJTWK/Bitinsure-1502.png (https://postimg.cc/PpW8ypS5)

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.

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.

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.

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.

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.

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.

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.

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.

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.

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?

Probably since Bitcoinica. :D 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.