Trading with leverage

[Issa56]

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.

[bhooscream]

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.

[abrahamtownsend]

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.

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.

[abrahamtownsend]

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.

Thank you for echoing my thoughts!

[gabbie2010]

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.

[Wexnident]

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.

[BitcoinAccepted]

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.

[rijaljun]

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.

[Wind_FURY]

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.
 

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.

[lixer]

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.

Yeah, OP is trying to misguide new traders because theoretically leverage markets might look like an advantage but when getting into market then high volatility might swallow all their capital in matter of one or two sessions. Basically, limited funds cannot be a constrain for considering about leverage market.

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.

[AicecreaME]

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.

[geegaw]

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

[palle11]

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.

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

[Oshosondy]

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.

[Wind_FURY]

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.

Yeah, OP is trying to misguide new traders because theoretically leverage markets might look like an advantage but when getting into market then high volatility might swallow all their capital in matter of one or two sessions. Basically, limited funds cannot be a constrain for considering about leverage market.

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.

It’s years and years of experience, the right psychology, and the most important, THE TALENT which most of us plebs don’t, and will NEVER EVER have. Plebs most of the time don’t have a choice but should do it the proper way. Get a better life through hard work.

[tvplus006]

Yes exactly. Trading with leverage is very risky although we may know how to set SL or CL...

Stop loss is not a panacea for trading with leverage, because its use also requires knowledge and experience of its proper use. After all, if the stop loss level is set incorrectly, it will not only not protect your balance, but will also lead to the fact that you will quickly lose it.

[tygeade]

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 many people here are into leveraged trading, I guess your question should be "how many people here are consistently profitable with leveraged trading" because against high volatile nature of bitcoin markets, most people get liquidated their account sooner or later. So, if you are trying to enlighten people on the merits of leveraged trading, I guess all your efforts may go in vain.

I am into spot trading of bitcoin against high volume altcoins. I got back up plan of converting my positions into holding hence I am literally profitable with my way of trading without any need of leverages.

[jostorres]

I am into spot trading of bitcoin against high volume altcoins. I got back up plan of converting my positions into holding hence I am literally profitable with my way of trading without any need of leverages.

Yeah, there are lots of methods are available to make profits out of crypto trading within available funds and also by not losing our peace of mind. Availing leverage definitely a big headache for all the traders as it bring another layer of risk along with what market fluctuations are providing. You really got a working plan. I also have tried this but sold my positions once I got into profit zones.

Spot trading must be 100 times better than leveraged trading even you are good at technical part. Because, most people are switching to leverage from spot trading and migrating for new target levels based on risk/reward calculations makes most people messing up things even they are used to it for years. So, just sticking with what is comfortable definitely will get us good profits even it is slow.

[Stedsm]

Leveraging out the markets is definitely not an easy thing to conquer (and can never be). The most important thing that comes to my mind when I leverage trade is that, I must keep my mind under control and not to lose confidence that my trade will go in profits if it's in loss already, because then, either I'll add more margin or increase the leverage, then remove the margin and then add more USDT in the position that I took out. Leverage trading is no less than gambling IMHO (or call it dice in other words with the odds being selected here as leverage).

Patience and control over yourself, keeping leverage to limited and understanding the highly volatile nature of markets, using some part of the capital and not going all in, even if not tight - stops must be there and even a TP.

[Mahanton]

Yes exactly. Trading with leverage is very risky although we may know how to set SL or CL...

Stop loss is not a panacea for trading with leverage, because its use also requires knowledge and experience of its proper use. After all, if the stop loss level is set incorrectly, it will not only not protect your balance, but will also lead to the fact that you will quickly lose it.

Using up stop loss isnt something that you could indeed make use without any knowledge because this would really in result not only on good things but also in missing out
opportunity considering that price swings on this market isnt some thing that you could just set some shallow stop loss which will really be not good on your trading
dealing.When it comes to leverage then this is something required knowledge which not all would really able to have or simply wont able to get it on
first few tries and i do consider leverage or options to be on that gambling side of things basing of the level of risk.