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Author Topic: Are there any good videos/tutorials on cross and isolated leverage types?  (Read 129 times)
jackg (OP)
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October 17, 2019, 06:56:53 PM
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I've been using isolated leverage on bitmex and am starting to look into cross leveraging. Are there any good sites that explain how it all works as I'm trying to practice by putting some amounts into cross positions but I'm trying to work out when it's better to use isolated leverage than cross leverage? (I assume it'd when you want to take on large amounts of risk at once?)
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October 17, 2019, 07:18:05 PM
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Make a search on google or youtube, man. There are plenty of websites explaining it carefully. Simply put when you use cross leverage you're exposing your whole account so you need to have proper risk management aka know when you need to take the risk off or place a static stop loss. As far as I know professionals only use cross leverage. You could view it this way also: when you use cross leverage, your whole account will disappear once your position is liquidated but the liquidation price should be much lower. On the other hand if you're using isolated margin you will only lose the amount you've risked on the position.
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October 17, 2019, 07:33:59 PM
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I googled this topic for you and one of the first articles I found with a somewhat basic description of cross leverage was written by PrimeXBT and you can view it here. Again, it's a good way of keeping a position from getting liquidated if you've got a trade open and you want to risk your entire account on that particular trade (if you're not stopping it out).

While this particular article says it's a good idea to always be using cross leverage, I don't agree with that as most people don't have a large enough account to keep the liquidation price on their trades down to zero or something unlikely to be reached, and holding down to liquidation isn't always a good idea. It's all up to you in the end, and how your particular trading strategy meshes together with whatever sort of leverage type you plan on choosing.
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October 17, 2019, 09:35:18 PM
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Make a search on google or youtube, man.

I did yesterday. Thought I'd open a topic here to see if anyone could provide anything before commenting on youtube videos to ask for the person to make one... The closest I came to finding out what it is was watching multiple people trying to sell courses on signalling (YouTube really needs to sort its algorithm) or those guys need to stop putting "cross" on all their titles...

I googled this topic for you and one of the first articles I found with a somewhat basic description of cross leverage was written by PrimeXBT and you can view it here.

Thanks (someone actually bothered to help)... It seemed weird that my leverage for crossing litecoin seemed to go up but my liquidation price went down when most of my funds were in that position already.



If anyone uses bitmex Cross often enough do you know if the leverage increases as the unrealised pnl goes up or do I need to adjust this manually. (although it might just be best to wait for these contracts to mature and find out myself from experience)...
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