Leverage Trading

[FrankTheTank1]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

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[aoluain]

The biggest difference for me straight off is if you want to be guaranteed to be liquidated
or stopped out go with $100 @ 50x it will only take a couple of % of market movement
to trigger loss or stop.

Most experienced leverage traders only use 2 or 3x

When you hear "the market is over-leveraged"
they are referring to the absolutely  crazy high gambles like 50x and these either pump
the markets when the shorts get liquidated or dumps when the longs get liquidated

[Coin_trader]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

Technically your idea is correct since you understand the liquidation part since it's the only major difference for spot and leverage trading. Second is the interest fee per day for borrowing that money for your leverage trading. Lastly there's a maker and taker applied when you open/close your position so you should consider that tons of fee along with the liquidation price that you are watching.

[FrankTheTank1]

Thank you!

The problem came up as I found https://www.winrate.io/ A page for calculating profits in trading.

I putted in my both trades (100$ 50x vs 5.000$ 1x) (I used ByBit as exchange) and the results differ enormously. This is not clear for me, I thought the results should be equal.

[Mpamaegbu]

Most experienced leverage traders only use 2 or 3x

You're right and that could be because they've been beaten by losses occasioned by their early misuse of leveraging. Most noobs use high leverage because they tend to believe in hitting it big at once on profit while neglecting the axiom, "slow and steady wins the race." I know of someone who started with x25 even though they didn't have any basic trading skill apart from self-feelings and instinct. Though after some nerve wrecking experiences that person retraced their steps and is more calculative this day. Come to think of it, there are even experienced traders who steer clear of leverage trading at all cost.

[Bitcoin_Arena]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

Obviously the difference is the liquidation price which is very huge, and It has a very high impact on your win rate, risk and reward and the impact of a single loss on your portfolio

The problem came up as I found https://www.winrate.io/ A page for calculating profits in trading.

I putted in my both trades (100$ 50x vs 5.000$ 1x) (I used ByBit as exchange) and the results differ enormously. This is not clear for me, I thought the results should be equal.

The results can never be equal since your winrate will be affected alongside other factors

[Darker45]

You seem to be asking the wrong question. Trading with x1 leverage versus trading with x50 leverage is all about differences. There's almost no similarity at all. You should've asked what's similar between the two. You're actually comparing between no leverage, which x1 leverage essentially means, and high leverage.

If you trade $5,000 with x1 leverage, you're still trading with your own $5,000, no leverage at all. If you're trading x50 that means your $100 is like $5,000. But since the latter is magnified with x50, it means the potential profit and the potential loss are also magnified. So if you think of leverage trading, don't just think of your potential profit, think also of your potential loss. The higher the leverage, the higher the risk.

[odolvlobo]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

The difference is that you are investing X dollars in the unleveraged trade, and 50X dollars in the 50x leveraged trade. You get the other 49X dollars by borrowing them. In order to protected the lender, your position will be automatically closed by the exchange if it thinks that there is any chance that any of the 49X portion will be lost. Frequently, the position is closed and you are left with nothing. Typically, a 50x position will be closed if it is down a little more than 1%, and you will lose most or all of your money because whatever is left over after paying back the lender will be used to pay fees.

Another difference is that you must pay interest on the borrowed money.

[FrankTheTank1]

Thank you all!
I think, I should not use leverage before I get some experience.

[Poker Player]

Thank you all!
I think, I should not use leverage before I get some experience.

And if you ever use it, think about using the lower leverage the better. No matter how good you are, the more leverage and the longer you are using high leverage, the closer you get to 100% probability of being liquidated, that's why expert traders use low multipliers, because no matter how good you are, the market swings end up beating you.

I also tell you that from the trading houses leverage trading is promoted a lot, with ads like "deposit 1 and trade with 100", things like that, because at the end of the day they earn by commissions but if the traders in the stock market that earn money are very few, in the crypto market are even fewer and I would say that using leverage in the long term will be 0.

If You're Day Trading, You Will Probably Lose Money: Here's Why

    One study of Brazilian futures traders found 97% of day traders lost money over a period of 300 days.
    Another study of day traders in Taiwan between 1995 and 2006 found only 5% of day traders to be profitable.
    A study by the U.S. Securities and Exchange Commission of forex traders found 70% of traders lose money every quarter on average, and traders typically lose 100% of their money within 12 months.
    A study of eToro day traders found nearly 80% of them had lost money over a 12-month period, and the median loss was 36%.

[Oshosondy]

Most experienced leverage traders only use 2 or 3x

How did you know that most experienced traders uses 2 or 3x leverage? Did you have any data about that? I too can say most experienced traders uses no leverage at all but just 1x and also some decide not to go beyond 2x. But if we are talking about experienced traders, did you believe some can go as high as 5x during far volatile market in a way there has been a massive price drop, but the more leverage the more the certainty of liquidation.

[gabbie2010]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

Risk factor differs in both trades, leveraging a $100 trade with 50x is too risky infact any slight dump in the price of crypto pair traded will trigger a margin call by the exchange based on personal experience while trading with Binance, however $5 with 1x less risky though with a smaller profit, preferably adoption of cross margin which is 3x in Binance is quite reasonable coupled with a good trading strategy and money management a good and experience trader will earn a decent profit in a long run.

[AicecreaME]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

The $5,000 trade with 1x leverage is the slowly but surely trade, usually this kind of trade is for long term, while the $100 with 50x leverage is the high risk high reward trade, it is not recommended but if you love thrills and easy money and easy losing of your money, it is the best trading approach you should do. In short, the first one is for patient people while the last one is for impatient people.

[palle11]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

The difference is that they are both of different advantage. Taking a higher risk gives a higher profit and a lower risk taken is equals to a lower profit. Therefore for example trading with a 50x leverage against a 1x leverage is not the same. Professionally , it is better using a low leverage than a high leverage because if your prediction of trade goes wrong, your account suffers it.

[Peanutswar]

Using a leverage is you are allowing the exchange to borrow some money for your trade of course if you can't pay anymore it might get liquidated if you are making a trade with 1x looks like you are doing spot trading not futures trading but in the higher leverage this helps you to get more profit but if you make a mistake might ruin your wallet balance. Always trade what you are willing to lose.

[tvplus006]

I think, I should not use leverage before I get some experience.

The desire to earn quickly and a lot, forces beginners to use high leverage. Obviously, they consider this type of trading as a casino, while they expect to get only a positive outcome of the transaction for themselves. But the reality turns out to be different and they lose their deposit after one unsuccessful deal. Therefore, you made the right decision to delay margin trading.

[Oshosondy]

Using a leverage is you are allowing the exchange to borrow some money for your trade of course if you can't pay anymore it might get liquidated if you are making a trade with 1x looks like you are doing spot trading not futures trading but in the higher leverage this helps you to get more profit but if you make a mistake might ruin your wallet balance. Always trade what you are willing to lose.

That is true but I will not consider future trading as making a mistake because it is normal that if newbie start to trade using leverage, they will lose, even they will lose if they are just trading without leverage but the loss will not be as much as using future trading. I remembered when I started future trading, I used 125x all because the little I had was multiply by 125x, making it very huge amount, but I did not know that the liquidation price is very near which was what happened.

The desire to earn quickly and a lot, forces beginners to use high leverage. Obviously, they consider this type of trading as a casino, while they expect to get only a positive outcome of the transaction for themselves. But the reality turns out to be different and they lose their deposit after one unsuccessful transaction. Therefore, you made the right decision to delay margin trading.

Please what did you mean by unsuccessful transaction while trading, I do not think making transaction and trading are connected.

[lixer]

is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?

You may not feel any differences between leveraged trading and non-leveraged trading until market is in your direction (except the fee for availing leverage in terms of interest in some exchanges). But, when market turns against you then you will start feeling the heat. It means that you can wait up to $5000 movement with non-leveraged trading whereas you can wait only until ~$98 price movement in leveraged environment because after that it would be not your money hence you are not allowed to wait more.

In this high volatile bitcoin market, if your technical analysis are too accurate then you may go for leveraged trading like once you enter then market should keep going up; if you cannot generate that kind of accurate signal then you should trade only at spot market.

[tvplus006]

Please what did you mean by unsuccessful transaction while trading, I do not think making transaction and trading are connected.

I meant a unsuccessful deal, after which the trader usually remains without pants) Right now, the market is showing exactly such a movement that all those who hold a long position with a large margin and at the same time have not set a stop loss have already been liquidated or will be liquidated in the near future.

[Wind_FURY]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

No difference unless you want to throw your $100 away, and which could have been better if saved in Bitcoin. Nothing great was built overnight.

If we look at when you posted your question, and the current mini-crash, I believe your $100 with 50x leverage gamble didn’t last you more than a day.

[Mauser]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

With leverage of 1 you probably mean a normal long position. You probably own the underlying asset directly and experience any change in price 1 to 1 in your portfolio. If there is a crash in the market the price will drop close to 0, but you can't lose more than your original 5000 USD. As for the 50x leverage here you probably don't own any underlying asset and just a contract that participates you on the price movement. The biggest issue for me is that your losses are not limited to the 100 USD investment. You could lose much more than that.

[MIner1448]

Taking into account the volatility of the market, your deposit of $ 100 with a leverage of x50 will not be enough to practically budge, let's say your rate has dropped at least from the original price by 1% - this is already 50 times of your deposit, most likely even up to 1% your rate will not go negative, your deposit liquidity will burn out on the way to this amount.

[VanityWallets2015]

I really do like this kind of topic from new traders, I was like that before whenever I don't understand things in trading from the materials I read online. Well I think it's two different thing just come to think of this, the higher the leverage the more risk you will get. So I think it's better to stick with the spot trading or explore the futures with a smaller amount.

[Ararbermas]

 The amount of profits you can make from using different leverage is the difference mate..$100-1x and 5k- 50x. Just compute both for you to know how much you can get on both trades.. And yes the liquidation as well because that's is futures trading mso better to understand the rules so that you're aware what will be the results.

[tygeade]

No difference unless you want to throw your $100 away, and which could have been better if saved in Bitcoin. Nothing great was built overnight.

If we look at when you posted your question, and the current mini-crash, I believe your $100 with 50x leverage gamble didn’t last you more than a day.

Unless he shorted it, there is shorting available as well and if you shorted at that time with 100 bucks and the price went low, then it would have been a over a thousand dollars depending on what type of leverage was used. I am not saying that leverage trading is great and all, we literally have a majority failing at spot trading so to expect that people could be great at leverage trading would be naive.

Unfortunately people can't keep their emotions out of trading and that results with bad situations which means if you put that into leverage people would be even more emotional and things going to end up not being so profitable and also psychologically a problem.

[Silberman]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

Do you need even more differences than that? When you use so much leverage the margin you have is paper thin and as soon as there is a small movement in the market that goes against your prediction then you will get a margin call, while in a trade in which you do not use leverage that same movement will barely affect your capital, it is clear to me you do not really understand the dangers of leverage so avoid using it for the time being.

[CryptoYar]

Just an example, you have $10 and took 5x leverage now If the trade goes according to your prediction then you will get 5x more profit. Same way if your trade/prediction goes wrong will face x5 lose.

And your trade will be open until your loss is $10 When your loss is $10 your trade will be closed automatically and the exchange will take their funds back.


Therefore, always respect your funds... And take low leverage and most importantly use stop loss

[Wind_FURY]

No difference unless you want to throw your $100 away, and which could have been better if saved in Bitcoin. Nothing great was built overnight.

If we look at when you posted your question, and the current mini-crash, I believe your $100 with 50x leverage gamble didn’t last you more than a day.

Unless he shorted it, there is shorting available as well and if you shorted at that time with 100 bucks and the price went low, then it would have been a over a thousand dollars depending on what type of leverage was used. I am not saying that leverage trading is great and all, we literally have a majority failing at spot trading so to expect that people could be great at leverage trading would be naive.

Trading with leverage is great, IF you’re part of the top 10% of profitable traders. Plebs don’t understand that the market is a war zone where there traders who are smarter than you, and work harder than you.

Unfortunately people can't keep their emotions out of trading and that results with bad situations which means if you put that into leverage people would be even more emotional and things going to end up not being so profitable and also psychologically a problem.

Or plebs are merely not good enough, just Buy the DIP and HODL.

[sumant]

Personally I love concept of leverage trading, it is really very dramatic. Your money is in loss or profit in very short time. As I have coverage myself leverage trading and sports betting these two program is not going to suit many people around world reason they can't control the emotions of getting big money in short time. If you are a patient trader then you can give a go to market and enjoy your ride.

[palle11]

Personally I love concept of leverage trading, it is really very dramatic. Your money is in loss or profit in very short time. As I have coverage myself leverage trading and sports betting these two program is not going to suit many people around world reason they can't control the emotions of getting big money in short time. If you are a patient trader then you can give a go to market and enjoy your ride.

Leverage trading is not for newbies because they don't understand what will be happening to their account when it starts going down. It is for well experienced traders who can also bear the risk. Leverage is good when on profit but if you start losing then you are on a free fall that you see you are empty. A small leverage is better than using high leverage and I don't advise newbies for it in any way.

[Wind_FURY]

Personally I love concept of leverage trading, it is really very dramatic. Your money is in loss or profit in very short time. As I have coverage myself leverage trading and sports betting these two program is not going to suit many people around world reason they can't control the emotions of getting big money in short time. If you are a patient trader then you can give a go to market and enjoy your ride.

This is why the top 10% of the very best traders are millionaires. There’s always a pleb like me who gets very excited in “the drama” of market volatility that top 10% of traders will take advantage of, and get profit from.

How many cycles more before they simply, Buy the DIP and HODL.

[RealMalatesta]

leverage trading and sports betting these two program is not going to suit many people around world reason they can't control the emotions of getting big money in short time.

Is there any reason to include sportsbetting here? Because, I am not seeing any relation between leverage trading and sportsbetting.

Even you are good in controlling your emotions, leverage trading may lead you to bite the dust as no market is predictable and these days bitcoin market is too wild in fluctuations even it got decent volume. So, dangers of leveraged trading will not get eliminated even you are able to manage your emotions effectively.

A small leverage is better than using high leverage and I don't advise newbies for it in any way.

Minimum leverage along with good technical analysis may get you profits but availing small leverage is not a problem for any trader but stronger technical analysis.

[mindrust]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

With 50x leverage, you'll get liquidated  50 times faster. Using leverage is often considered dangerous especially if you are not experienced because you are basically trading on borrowed money when you use leverage on your trades.

If you trade on 1x leverage, as long as the markets don't go to zero, you can't get liquidated. With 2x leverage, you get liquidated the moment markets drop 50%.

[wxa7115]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

No difference unless you want to throw your $100 away, and which could have been better if saved in Bitcoin. Nothing great was built overnight.

If we look at when you posted your question, and the current mini-crash, I believe your $100 with 50x leverage gamble didn’t last you more than a day.

I understand that sometimes people do not really understand what they are talking about but if they cannot see any difference between using more capital and no leverage on one hand and on the other using a very small amount of capital and a lot of leverage, then they could simple create two accounts in different exchanges, test their theory that there is no difference and then see how things work out.

And if they did that then they will soon realize that those 100 dollars will evaporate in an instant, while the account that was not using leverage just presented small losses, but for some reason something as simple as that never crosses their mind and instead derive conclusions without any evidence whatsoever about the validity of their claims.

[Wind_FURY]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

No difference unless you want to throw your $100 away, and which could have been better if saved in Bitcoin. Nothing great was built overnight.

If we look at when you posted your question, and the current mini-crash, I believe your $100 with 50x leverage gamble didn’t last you more than a day.

I understand that sometimes people do not really understand what they are talking about but if they cannot see any difference between using more capital and no leverage on one hand and on the other using a very small amount of capital and a lot of leverage, then they could simple create two accounts in different exchanges, test their theory that there is no difference and then see how things work out.

What the 90% of “traders” don’t truly understand is that the top 10% of traders, who are real professionals, WANT them to continue trading. The “traders” are their victims.

Do you want to be a victim? Or do you want to simply Buy Bitcoin, and HODL?

[sana54210]

I understand that sometimes people do not really understand what they are talking about but if they cannot see any difference between using more capital and no leverage on one hand and on the other using a very small amount of capital and a lot of leverage, then they could simple create two accounts in different exchanges, test their theory that there is no difference and then see how things work out.

What the 90% of “traders” don’t truly understand is that the top 10% of traders, who are real professionals, WANT them to continue trading. The “traders” are their victims.

Do you want to be a victim? Or do you want to simply Buy Bitcoin, and HODL?

Those professionals know what they are doing, they know that they have more money than others as well, and they know what they have to do to get the most out of the liquidity available as well.

If the price looks low at that moment and yet there are still a bit of price change allowing them to make profit, they could drop it even further to make that income, if there is a big short futures saved up, and just 1k+ going up makes them 100x more money than they will make sure to get that as well. Whatever whales do, they know what they are doing and checking the market and how people are positioned and smaller investors do not have that advantage because they lack the funds for it.

[Zilon]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

There is no difference at all both are obviously at the same risk proportion. Now if you look closely the liquidation price of both currency and the leverage choosed to trade both are almost of the same ratio meaning If the $5 trade uses 1x leverage because the account size is not capable of holding a trade for long it is bound to face a total wipe similarly to the $100 with 50x leverage because the account will open a single trade above the lot size it can carry

[Wind_FURY]

I understand that sometimes people do not really understand what they are talking about but if they cannot see any difference between using more capital and no leverage on one hand and on the other using a very small amount of capital and a lot of leverage, then they could simple create two accounts in different exchanges, test their theory that there is no difference and then see how things work out.

What the 90% of “traders” don’t truly understand is that the top 10% of traders, who are real professionals, WANT them to continue trading. The “traders” are their victims.

Do you want to be a victim? Or do you want to simply Buy Bitcoin, and HODL?

Those professionals know what they are doing, they know that they have more money than others as well, and they know what they have to do to get the most out of the liquidity available as well.

Their large capital, they can use that to make more trades than us, manipulate the market through stop-loss hunting, and to liquidate plebs who are trading with leverage. The plebs’ small capital allows him/her a smaller set/quantity of “moves”, a trader with hundeds of millions in trading capital allows a larger set/quantity of “moves”.

[abikobong]

Personally I love concept of leverage trading, it is really very dramatic. Your money is in loss or profit in very short time. As I have coverage myself leverage trading and sports betting these two program is not going to suit many people around world reason they can't control the emotions of getting big money in short time. If you are a patient trader then you can give a go to market and enjoy your ride.

Leverage trading is not for newbies because they don't understand what will be happening to their account when it starts going down. It is for well experienced traders who can also bear the risk. Leverage is good when on profit but if you start losing then you are on a free fall that you see you are empty. A small leverage is better than using high leverage and I don't advise newbies for it in any way.

Two words: risk management. Dont risk more than 1% per trade and no more than 5% per day, more leverage means more risk.
newbie lost from future trading due to not using stop loss.

[Wind_FURY]

Personally I love concept of leverage trading, it is really very dramatic. Your money is in loss or profit in very short time. As I have coverage myself leverage trading and sports betting these two program is not going to suit many people around world reason they can't control the emotions of getting big money in short time. If you are a patient trader then you can give a go to market and enjoy your ride.

Leverage trading is not for newbies because they don't understand what will be happening to their account when it starts going down. It is for well experienced traders who can also bear the risk. Leverage is good when on profit but if you start losing then you are on a free fall that you see you are empty. A small leverage is better than using high leverage and I don't advise newbies for it in any way.

Two words: risk management. Dont risk more than 1% per trade and no more than 5% per day, more leverage means more risk.
newbie lost from future trading due to not using stop loss.

Using that strategy, would a simple, inexperienced pleb like you or me outperform the basic strategy of buy the dip, and HODL? Bitcoin would profit you more than 10x from March of 2020, more if you bought the right shitcoin, but many leveraged traders either do not outperform, OR lose their money through liquidation.

[zulfi125]

The difference in leverage trading of $5000x1 and $100X50x is your funds, you can invest only $100 instead of investing $5000, the benefit of leverage trading is starting with low funds no need to start with $5000 but as you know if leverage will high then liquidation soon and if leverage will be small then liquidation will be late and stop-loss can minimize the liquidation if you know about it then always use stop loss in leverage trading then no chance to liquidate your funds.

[Wind_FURY]

The difference in leverage trading of $5000x1 and $100X50x is your funds, you can invest only $100 instead of investing $5000, the benefit of leverage trading is starting with low funds no need to start with $5000 but as you know if leverage will high then liquidation soon and if leverage will be small then liquidation will be late and stop-loss can minimize the liquidation if you know about it then always use stop loss in leverage trading then no chance to liquidate your funds.

That would be gambling, not trading, my good ser. A pleb like you and me’s probability of long-term success will be very low, in taking that kind of journey. Use that $100 to save instead of gamble. Save $100 a month, and in 10 months, you have $1,000 to buy the dip and HODL.

[SirLancelot]

is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?

You need to pay daily interest for your extra exposure you got through leverages. It means you may not able to scalp at your own short targets but you need to consider few other factors as well to decide about your target levels. With $100, I may trade on spot markets but for leverage you need to trade only on derivative markets with expiring contracts hence you cannot wait (more profits) with an open position.

Leverage trading might be good for you in short term trading along with good skills in TA and FA. If you are a beginner then you should never think about availing leverage as 99% of beginners do lose all their capital hence for beginning days small capital is highly recommended.

[wxa7115]

What the 90% of “traders” don’t truly understand is that the top 10% of traders, who are real professionals, WANT them to continue trading. The “traders” are their victims.

Do you want to be a victim? Or do you want to simply Buy Bitcoin, and HODL?

And they are within their rights to do this, after all if I was in their position to make a lot of money thanks to the completely mistaken ideas that the majority of those that trade the markets have then I would do the same, and I think that is pretty much a given for everyone else.

However since I cannot do that then I have decided to not be a victim and just hold my coins, it is not the most exciting way to earn money but as long as I am winning who cares about the excitement I get.

[Wind_FURY]

What the 90% of “traders” don’t truly understand is that the top 10% of traders, who are real professionals, WANT them to continue trading. The “traders” are their victims.

Do you want to be a victim? Or do you want to simply Buy Bitcoin, and HODL?

And they are within their rights to do this, after all if I was in their position to make a lot of money thanks to the completely mistaken ideas that the majority of those that trade the markets have then I would do the same, and I think that is pretty much a given for everyone else.

It is in their right, as newbies, to lose their own money gambling with high leverage in shitcoins, but it’s also in our right to give them an opposing point of view to make them stop from losing their own salary, their wife’s salary, their mother’s salary.

[topbitcoin]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

$5000 with 1x leverage means need to move a lot before get liquidated, and $100 with 50x leverage means only need little spread of market movement to get liquidated. If i have $5000 maybe i will be more confident to trade because (but this is my personal opinion) leverage trading almost like how much our capital can hold our order, so longer that we can stay in market before liquidated is better.

[wxa7115]

What the 90% of “traders” don’t truly understand is that the top 10% of traders, who are real professionals, WANT them to continue trading. The “traders” are their victims.

Do you want to be a victim? Or do you want to simply Buy Bitcoin, and HODL?

And they are within their rights to do this, after all if I was in their position to make a lot of money thanks to the completely mistaken ideas that the majority of those that trade the markets have then I would do the same, and I think that is pretty much a given for everyone else.

It is in their right, as newbies, to lose their own money gambling with high leverage in shitcoins, but it’s also in our right to give them an opposing point of view to make them stop from losing their own salary, their wife’s salary, their mother’s salary.

Without a doubt, whenever I see a newbie with dreams of making 100x in a week I warn them that this is not possible, as you may guess the majority do not listen but I think there is a small percentage of them that do and it feels great to help other people on the beginning of their journey.

However even if we help them out that does not mean that they have actually learned their lesson as the temptation to invest in all kind of useless coins or use a lot of leverage will always be there, and if they cannot remain firm on their desire to stay away from those options then they will eventually lose their money.

[Bitcoin_Arena]

Using that strategy, would a simple, inexperienced pleb like you or me outperform the basic strategy of buy the dip, and HODL? Bitcoin would profit you more than 10x from March of 2020, more if you bought the right shitcoin, but many leveraged traders either do not outperform, OR lose their money through liquidation.

You have got to start from somewhere, my friend. Even those so-called professional traders you call today were once some inexperienced plebs. Without learning from your mistakes and being smart, you remain the same inexperienced pleb over the years.

I like how easily Bitcoin and other shitcoins can get you profit, especially if you get the perfect dip, but I don't mind earning something from day trading using leverage. Of course, I use low leverage 

[cabron]

What the 90% of “traders” don’t truly understand is that the top 10% of traders, who are real professionals, WANT them to continue trading. The “traders” are their victims.

Do you want to be a victim? Or do you want to simply Buy Bitcoin, and HODL?

And they are within their rights to do this, after all if I was in their position to make a lot of money thanks to the completely mistaken ideas that the majority of those that trade the markets have then I would do the same, and I think that is pretty much a given for everyone else.

It is in their right, as newbies, to lose their own money gambling with high leverage in shitcoins, but it’s also in our right to give them an opposing point of view to make them stop from losing their own salary, their wife’s salary, their mother’s salary.

Without a doubt, whenever I see a newbie with dreams of making 100x in a week I warn them that this is not possible, as you may guess the majority do not listen but I think there is a small percentage of them that do and it feels great to help other people on the beginning of their journey.

However even if we help them out that does not mean that they have actually learned their lesson as the temptation to invest in all kind of useless coins or use a lot of leverage will always be there, and if they cannot remain firm on their desire to stay away from those options then they will eventually lose their money.

The leverage is just too huge to resist for newbies but having just $100 with 50x is going to be easy money for the platform to bet on to get the margin call.

New investors forget that the market moves in two directions which if they have just started investing last year, then they've only seen the market in one direction. It's not a good decision to dip thier feet on options. They can easily lose thier money when the market moves against their position.

[gamer4156]

Finally there's a producer and taker applied when you open/close your position so you ought to consider that huge loads of expense alongside the liquidation value that you are watching. So assuming that you consider influence exchanging, don't simply think about your expected benefit, think additionally about your possible misfortune. The higher the influence, the higher the danger.

[Wind_FURY]

What the 90% of “traders” don’t truly understand is that the top 10% of traders, who are real professionals, WANT them to continue trading. The “traders” are their victims.

Do you want to be a victim? Or do you want to simply Buy Bitcoin, and HODL?

And they are within their rights to do this, after all if I was in their position to make a lot of money thanks to the completely mistaken ideas that the majority of those that trade the markets have then I would do the same, and I think that is pretty much a given for everyone else.

It is in their right, as newbies, to lose their own money gambling with high leverage in shitcoins, but it’s also in our right to give them an opposing point of view to make them stop from losing their own salary, their wife’s salary, their mother’s salary.

Without a doubt, whenever I see a newbie with dreams of making 100x in a week I warn them that this is not possible, as you may guess the majority do not listen but I think there is a small percentage of them that do and it feels great to help other people on the beginning of their journey.

However even if we help them out that does not mean that they have actually learned their lesson as the temptation to invest in all kind of useless coins or use a lot of leverage will always be there, and if they cannot remain firm on their desire to stay away from those options then they will eventually lose their money.

The leverage is just too huge to resist for newbies but having just $100 with 50x is going to be easy money for the platform to bet on to get the margin call.

Exchanges are also market makers, they are probably always betting against the 50x leverage plebs. They can make the price “DIP”, liquidated the plebs, then collect their money. “Thanks for playing ser, come again”.

[tvplus006]

...I like how easily Bitcoin and other shitcoins can get you profit, especially if you get the perfect dip, but I don't mind earning something from day trading using leverage. Of course, I use low leverage 

Leverage allows a trader to open a short position, and accordingly earn money in a falling market. This is something that no trader in the spot market can do. So without using leverage, in most cases you would have to stay away from the market.

[JooBra]

...I like how easily Bitcoin and other shitcoins can get you profit, especially if you get the perfect dip, but I don't mind earning something from day trading using leverage. Of course, I use low leverage 

Leverage allows a trader to open a short position, and accordingly earn money in a falling market. This is something that no trader in the spot market can do. So without using leverage, in most cases you would have to stay away from the market.

Shorting is where good trader earns good money. Since the dips are usually bigger the bigger is the profit.

[pawanjain]

Thank you!

The problem came up as I found https://www.winrate.io/ A page for calculating profits in trading.

I putted in my both trades (100$ 50x vs 5.000$ 1x) (I used ByBit as exchange) and the results differ enormously. This is not clear for me, I thought the results should be equal.

The results should be equal in both the trades since both of them will return the same amount of profit/loss.
I think you are doing something wrong because I tried the same and I am getting equal profits for both of the trades.
Could you share the screenshot by posting it on image sharing website and then posting the link here.
That way we will be able to identify what are you doing wrong and then correct it.

[SquallLeonhart]

...I like how easily Bitcoin and other shitcoins can get you profit, especially if you get the perfect dip, but I don't mind earning something from day trading using leverage. Of course, I use low leverage  

Leverage allows a trader to open a short position, and accordingly earn money in a falling market. This is something that no trader in the spot market can do. So without using leverage, in most cases you would have to stay away from the market.

Shorting is where good trader earns good money. Since the dips are usually bigger the bigger is the profit.

Honestly, it is not that dips are bigger, because they are not since we usually go higher and higher each year, but more about being quicker. So, we moved from 30k to 64k from January 2021 to April, which is 90-100 days, but it took us nearly 30 days to lose that, probably less when you consider the real big fall from 68k to under 50k. So shorting is a quicker method of making money, if you are right and the price actually goes up.

The main problem is that 90% of the remainder of the time bitcoin goes up or stays the same, we do not go down every single day, if you looked at the charts in daily forms, you will see that most days are either less than 2% fall, which could be considered spread, or an increase, the days that we have 2%+ drops are usually not that frequent, and out of 365 days a year, it is the least thing that happens compared to all other possibilities.

[Wind_FURY]

...I like how easily Bitcoin and other shitcoins can get you profit, especially if you get the perfect dip, but I don't mind earning something from day trading using leverage. Of course, I use low leverage  

Leverage allows a trader to open a short position, and accordingly earn money in a falling market. This is something that no trader in the spot market can do. So without using leverage, in most cases you would have to stay away from the market.

Shorting is where good trader earns good money. Since the dips are usually bigger the bigger is the profit.

That’s not true, ser. In shorting, the maximum profit your trade can do is 100%. That’s only 2x of your money. To illustrate, many newbies make the common mistake of thinking that shorting from $10,000 to $5,000 gave them 100% of profit. No, it’s only 50%.

[tvplus006]

...I like how easily Bitcoin and other shitcoins can get you profit, especially if you get the perfect dip, but I don't mind earning something from day trading using leverage. Of course, I use low leverage  

Leverage allows a trader to open a short position, and accordingly earn money in a falling market. This is something that no trader in the spot market can do. So without using leverage, in most cases you would have to stay away from the market.

Shorting is where good trader earns good money. Since the dips are usually bigger the bigger is the profit.

That’s not true, ser. In sho ing, the maximum profit your trade can do is 100%. That’s only 2x of your money. To illustrate, many newbies make the common mistake of thinking that shorting from $10,000 to $5,000 gave them 100% of profit. No, it’s only 50%.

You are also counting incorrectly, since you do not specify the amount of leverage in your calculations. Your calculations are valid only for x1. Thus, if you use x10 leverage, then the size of your profit in your case will be 500%.

[Bitcoin_Arena]

That’s not true, ser. In shorting, the maximum profit your trade can do is 100%. That’s only 2x of your money. To illustrate, many newbies make the common mistake of thinking that shorting from $10,000 to $5,000 gave them 100% of profit. No, it’s only 50%.

I personally have realized profits of more than 100% in single open positions. I think you are mixing up two things. Position size and leverage.

Honestly, if I had an equity of 1,000 USDT in my account, then I opened a short position using 2x Leverage using all my equity. My position size or margin would be 2,000 USDT.
a 50% drop of price of the asset from $10,000 to $5,000 would mean 100% realization of profit ($1,000 in profits)
If it dropped by 60%, that would be 120% profit ($1,200 in profits)

Using a higher leverage would even bring in bigger profits if the entry position is perfectly executed.

[EdenHazard]

That’s not true, ser. In shorting, the maximum profit your trade can do is 100%. That’s only 2x of your money. To illustrate, many newbies make the common mistake of thinking that shorting from $10,000 to $5,000 gave them 100% of profit. No, it’s only 50%.

I personally have realized profits of more than 100% in single open positions. I think you are mixing up two things. Position size and leverage.

Honestly, if I had an equity of 1,000 USDT in my account, then I opened a short position using 2x Leverage using all my equity. My position size or margin would be 2,000 USDT.
a 50% drop of price of the asset from $10,000 to $5,000 would mean 100% realization of profit ($1,000 in profits)
If it dropped by 60%, that would be 120% profit ($1,200 in profits)

Using a higher leverage would even bring in bigger profits if the entry position is perfectly executed.

The entry position can never always in perfect style executed. the leverage trading could become a real opportunity to make money in quicker way but also could become a boomerang to lose your money like the flash! the difference is on how you have to manage the bankroll much tight than when you are not leveraged your capital.

i never recommend anybody to make more than 10x leveraged trading , too risky and specilative over there once you get in.

[Wind_FURY]

...I like how easily Bitcoin and other shitcoins can get you profit, especially if you get the perfect dip, but I don't mind earning something from day trading using leverage. Of course, I use low leverage  

Leverage allows a trader to open a short position, and accordingly earn money in a falling market. This is something that no trader in the spot market can do. So without using leverage, in most cases you would have to stay away from the market.

Shorting is where good trader earns good money. Since the dips are usually bigger the bigger is the profit.

That’s not true, ser. In sho ing, the maximum profit your trade can do is 100%. That’s only 2x of your money. To illustrate, many newbies make the common mistake of thinking that shorting from $10,000 to $5,000 gave them 100% of profit. No, it’s only 50%.

You are also counting incorrectly, since you do not specify the amount of leverage in your calculations. Your calculations are valid only for x1. Thus, if you use x10 leverage, then the size of your profit in your case will be 500%.

For context, we then go back to my original point, that what’s better for newbies? Simply HODLing, or gambling $100 with 50x leverage? Out of 100 newbies who do it, how many of them would not be liquidated?

I would always tell them to buy the DIP, and HODL, not trade with leverage without the education, the skills, and the capital.

[AakZaki]

~snip~

i never recommend anybody to make more than 10x leveraged trading , too risky and specilative over there once you get in.

It's very risky, but maybe it will also make you quickly have a lot of money. Maybe if your capital is large take levergae 5x that alone is enough. Remember you have to have more remaining funds to avoid liquidation. You should also think of alternaive strategies to avoid greater losses. I don't like this trade, I prefer spot trading because there is less risk than leveraged or future trading. Maybe if you learn it you can do it but everyone has their own pleasure to get the best profit.

[Wind_FURY]

This is an old Bitcoin meme created through a South Park cartoon. It’s very funny and very relatable because it represents what/how most of us plebs were when we haven’t learned the hard way yet. I believe it was also commisioned by a Bitcoin trader.

https://www.youtube.com/watch?v=FD0mrmmYaKQ

[smartaction]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

Your idea is not false. But if you trade for $100 with 50x leverage then it can requisition you within 1 min In that case you will absolutely lose that $ 100. But if you use $5000 in spot trading. Even if the price of your purchased tokens is reduced by 99%, you will not have any problem but you can hold them for recovery. So it is always better to avoid leverage trading. Coz it is soo risky

[gamer4156]

In conclusion there's a producer and taker applied when you open/close your position so you ought to consider that huge loads of expense alongside the liquidation value that you are watching. However after some nerve destroying encounters that individual backtracked their means and is more calculative this day. Then again, there are even capable merchants who avoid influence exchanging at all cost.

[pressing207]

Any trade with leverage leads to a complete collapse.  There are practically no people capable of controlling their even mental state for a long time.  This is constant stress. and a breakdown, eventually.

[wxa7115]

Without a doubt, whenever I see a newbie with dreams of making 100x in a week I warn them that this is not possible, as you may guess the majority do not listen but I think there is a small percentage of them that do and it feels great to help other people on the beginning of their journey.

However even if we help them out that does not mean that they have actually learned their lesson as the temptation to invest in all kind of useless coins or use a lot of leverage will always be there, and if they cannot remain firm on their desire to stay away from those options then they will eventually lose their money.

The leverage is just too huge to resist for newbies but having just $100 with 50x is going to be easy money for the platform to bet on to get the margin call.

New investors forget that the market moves in two directions which if they have just started investing last year, then they've only seen the market in one direction. It's not a good decision to dip thier feet on options. They can easily lose thier money when the market moves against their position.

I do not think they actually forget that the market can move in different directions, it is just they are so convinced on what they do that they never consider even the possibility of the market moving against their prediction.

This is one of the reasons why people act so emotional when their prediction is wrong as they take it personally if the market does not follow their prediction, forgetting that the markets do not really care about them at all or about any trader or investor in particular and that the ones that should adapt to its movements are themselves and not the other way around.

[Lanatsa]

Without a doubt, whenever I see a newbie with dreams of making 100x in a week I warn them that this is not possible, as you may guess the majority do not listen but I think there is a small percentage of them that do and it feels great to help other people on the beginning of their journey.

However even if we help them out that does not mean that they have actually learned their lesson as the temptation to invest in all kind of useless coins or use a lot of leverage will always be there, and if they cannot remain firm on their desire to stay away from those options then they will eventually lose their money.

The leverage is just too huge to resist for newbies but having just $100 with 50x is going to be easy money for the platform to bet on to get the margin call.

New investors forget that the market moves in two directions which if they have just started investing last year, then they've only seen the market in one direction. It's not a good decision to dip thier feet on options. They can easily lose thier money when the market moves against their position.

I do not think they actually forget that the market can move in different directions, it is just they are so convinced on what they do that they never consider even the possibility of the market moving against their prediction.

This is one of the reasons why people act so emotional when their prediction is wrong as they take it personally if the market does not follow their prediction, forgetting that the markets do not really care about them at all or about any trader or investor in particular and that the ones that should adapt to its movements are themselves and not the other way around.

You should really versatile on the  first place on which you would really be needing that kind of mindset since it could possibly move which is totally opposite on what you had predicted.One of the most

important tools which you could make use is having that Stop-loss.This might really be not important for some leverage traders but if you do want to trade conservatively then consider on using one

so that you wouldn't really be that liquidated easily just like other traders who had just stepped their foot into leverage but don't know on how badly they could able to experience losses
if they don't know on what they are doing.

[tvplus006]

Any trade with leverage leads to a complete collapse.  There are practically no people capable of controlling their even mental state for a long time.  This is constant stress. and a breakdown, eventually.

This statement will be true in relation to beginners who do not have experience and trading strategies with leverage. If you have learned how to trade on the spot market and have not lost your deposit, you can safely switch to margin trading, but at the same time you must comply with risk management.

[EdenHazard]

~snip~

i never recommend anybody to make more than 10x leveraged trading , too risky and specilative over there once you get in.

It's very risky, but maybe it will also make you quickly have a lot of money. Maybe if your capital is large take levergae 5x that alone is enough. Remember you have to have more remaining funds to avoid liquidation. You should also think of alternaive strategies to avoid greater losses. I don't like this trade, I prefer spot trading because there is less risk than leveraged or future trading. Maybe if you learn it you can do it but everyone has their own pleasure to get the best profit.

Well actually it's applied for no matter huge or small capital.

You must be in the lowest possible of leverage , you know what? The flash drop and or the flash pump is the nightmare for the leverage trader and nobody knows when that shit will do occurred. So yeah the dark side of leverage trading much more popular to talk than the bright side one , that's the fact unfortunately.

[Wind_FURY]

Any trade with leverage leads to a complete collapse.  There are practically no people capable of controlling their even mental state for a long time.  This is constant stress. and a breakdown, eventually.

This statement will be true in relation to beginners who do not have experience and trading strategies with leverage. If you have learned how to trade on the spot market and have not lost your deposit, you can safely switch to margin trading, but at the same time you must comply with risk management.

It’s actually not, and will not always be true, because even experienced traders are also affected by human emotions and some other patterns of behavior, causing them to be vulnerable in making mistakes sometimes. They are not robots,  although they make less mistakes than newbies. Plus switching to leveraged trading is not as easy as your post is telling everyone.

[Wexnident]

Any trade with leverage leads to a complete collapse.  There are practically no people capable of controlling their even mental state for a long time.  This is constant stress. and a breakdown, eventually.

This statement will be true in relation to beginners who do not have experience and trading strategies with leverage. If you have learned how to trade on the spot market and have not lost your deposit, you can safely switch to margin trading, but at the same time you must comply with risk management.

It’s actually not, and will not always be true, because even experienced traders are also affected by human emotions and some other patterns of behavior, causing them to be vulnerable in making mistakes sometimes. They are not robots,  although they make less mistakes than newbies. Plus switching to leveraged trading is not as easy as your post is telling everyone.

Well, it is relating to newbies instead of experienced traders though. I guess what OP was saying was about how newbie traders would "always" experience breakdowns and stressful experience, compared to experienced traders, who experiences everything all the same BUT they do know how to handle their emotions properly and would rarely let it run out of control. It's probably easy in terms of switching since you have experience, but the risks would still have the same problems all the same.

[CryptoYar]

Any trade with leverage leads to a complete collapse

not really! If you calculate your risk and reward and trade with stop loss then no worries. I mean You gotta define that if my prediction fails in this trade then I can bear x% loss and I will book my profit at this particular price. This way you can't lose your whole money otherwise you'll receive an email from your exchange about liquidation

~ switching to leveraged trading is not as easy as your post is telling everyone.

True!
The spot is quite easy and you don't lose anything until you sell your tokens ( you can hold till price recovery) on the other hand leverage trading is quick and if your prediction goes against. you'll lose money.

[Benefactor]

Ultimately there is a creator and taker applied when you open/close your position so you ought to consider that huge loads of expense alongside the liquidation value that you are watching. However after some nerve destroying encounters that individual remembered their means and is more calculative this day. On second thought, there are even capable brokers who avoid influence exchanging at all cost.

[Wind_FURY]

Any trade with leverage leads to a complete collapse.  There are practically no people capable of controlling their even mental state for a long time.  This is constant stress. and a breakdown, eventually.

This statement will be true in relation to beginners who do not have experience and trading strategies with leverage. If you have learned how to trade on the spot market and have not lost your deposit, you can safely switch to margin trading, but at the same time you must comply with risk management.

It’s actually not, and will not always be true, because even experienced traders are also affected by human emotions and some other patterns of behavior, causing them to be vulnerable in making mistakes sometimes. They are not robots,  although they make less mistakes than newbies. Plus switching to leveraged trading is not as easy as your post is telling everyone.

Well, it is relating to newbies instead of experienced traders though. I guess what OP was saying was about how newbie traders would "always" experience breakdowns and stressful experience, compared to experienced traders, who experiences everything all the same BUT they do know how to handle their emotions properly and would rarely let it run out of control.

Debatable, that’s why 90% of active traders lose. If I ask you, and you honestly answered, what percentage of the people in this forum who would say that they consider themselves to be an “experienced active trader” are truly profitable in trading?

It's probably easy in terms of switching since you have experience, but the risks would still have the same problems all the same.

“Probably”.

[pressing207]

Any leverage indicates the financial insolvency of the owner. Greed of the subsequent collapse anyway.

[Mauser]

Reading through the comments here it seems that most people here think that leverage trading is bad for beginners and will very likely end in a collapse, whereas for experienced trader it's a good way to increase returns. I disagree with that, even the most experienced trader can get into trouble when using leverage. Knowledge and experience is no guarantee that our leveraged positions are going to be profitable and not blow up. For me leverage means to reduce the possible margin of error we can have in our trades. We basically move ourselves closer to the edge of a cliff, while having a chance for higher returns. I might be so critical because of bad experiences myself with leverage. With a traditional long position we can always sit out a drop in prices and make our money back eventually, with a leveraged position we will be forced to close our position or lose all the money.

[pressing207]

Reading through the comments here it seems that most people here think that leverage trading is bad for beginners and will very likely end in a collapse, whereas for experienced trader it's a good way to increase returns. I disagree with that, even the most experienced trader can get into trouble when using leverage. Knowledge and experience is no guarantee that our leveraged positions are going to be profitable and not blow up. For me leverage means to reduce the possible margin of error we can have in our trades. We basically move ourselves closer to the edge of a cliff, while having a chance for higher returns. I might be so critical because of bad experiences myself with leverage. With a traditional long position we can always sit out a drop in prices and make our money back eventually, with a leveraged position we will be forced to close our position or lose all the money.

You must be a very young man. Good luck to you! There are no exceptions in this life. There is a concept of swap. (broker's interest). It is impossible to hold long positions for a long time.  And remember me later. Hello to your wife.

[Wind_FURY]

Any leverage indicates the financial insolvency of the owner. Greed of the subsequent collapse anyway.

That’s not always the truth. Professional traders also use leverage, the right way. But if the trade is made with a capital amount of $100.00, and leveraged to 50x, then yes, it definitely indicates that the owner either is finacially insolvent, OR wants to gamble.

[pressing207]

Any leverage indicates the financial insolvency of the owner. Greed of the subsequent collapse anyway.

That’s not always the truth. Professional traders also use leverage, the right way. But if the trade is made with a capital amount of $100.00, and leveraged to 50x, then yes, it definitely indicates that the owner either is finacially insolvent, OR wants to gamble.

All professional traders sit in generalized teams. No one asks them. Alone, they are all geniuses. And the result is a complete zero. Whales are the generalized brain of little morons.

[tvplus006]

Debatable, that’s why 90% of active traders lose. If I ask you, and you honestly answered, what percentage of the people in this forum who would say that they consider themselves to be an “experienced active trader” are truly profitable in trading?

If we take into account the messages that are left on this forum, then 90% trade with leverage and make a profit at the same time)) I understand that traders are wishful thinking and thus trying to raise their authority in front of others. But still, I am sure that a trader cannot do without margin trading, at least when opening short orders.

[antmex]

I only trade with leverage in the 1m scalp trading. Watching and strictly money management is recommend. Also no Emotion. Loss is always a part of „the game“

[ChrisPop]

$5000 with 1x leverage is essentially buying spot - so you're buying $5k worth of BTC.
$100 with 50x leverage = controlling a $5000 long/short position with only 100 bucks. The benefit is you can use the rest of the capital for other trades or endeavours. That's the beauty of leverage, but as you probably know it is a double-edged sword. A difference between buying spot and using leverage is that you are exposed to the funding and margin rate.

Keep in mind that you are going to pay extra fees when the engine liquidates you. As a tip - you can set a stop order just above/below the liquidation price so you don't get charged "for free". I can't think of any other difference atm.

[Wind_FURY]

$5000 with 1x leverage is essentially buying spot - so you're buying $5k worth of BTC.
$100 with 50x leverage = controlling a $5000 long/short position with only 100 bucks. The benefit is you can use the rest of the capital for other trades or endeavours. That's the beauty of leverage, but as you probably know it is a double-edged sword. A difference between buying spot and using leverage is that you are exposed to the funding and margin rate.

Keep in mind that you are going to pay extra fees when the engine liquidates you. As a tip - you can set a stop order just above/below the liquidation price so you don't get charged "for free". I can't think of any other difference atm.

But a small move against your trade, you are liquidated and quickly lose $100. If you really need your money to be used somewhere else, then don’t trade. Capital used for trading and investments should only be for trading and investments. Don’t mix them with your monthly budget for expenses, or your savings. I learned that lesson, the hard way.

[Mamun74]

When You start trading then i think you need to know about trading and skill.Experience trader they can get good return in trading. Leverage Trading Isn't easy because Very bad experiencing with leverage Trading. When people very emotional with trading Then they wrong decision and lost their investment money. Patience and control your emotion is necessary for trade.

[Wind_FURY]

When You start trading then i think you need to know about trading and skill. Experience trader they can get good return in trading. Leverage Trading Isn't easy because Very bad experiencing with leverage Trading. When people very emotional with trading Then they wrong decision and lost their investment money. Patience and control your emotion is necessary for trade.

But it’s a fact that 90% of traders lose their capital to the 10% most profitable of traders. There’s always someone who is better than you, more motivated than you, hungrier than you. It’s a competition.

Plus most of us plebs overestimate our skills, this video illustrates what we actually are, https://www.youtube.com/watch?v=ktOL-SkHVdM

[Albescent]

@Wind_Fury Trading cryptocurrencies that too using leverage is very risky. A trader needs to have specific trading skills and should have proper knowledge and understanding about trading cryptos.

[rby]

@Wind_Fury Trading cryptocurrencies that too using leverage is very risky. A trader needs to have specific trading skills and should have proper knowledge and understanding about trading cryptos.

The question of OP look like there is no difference between the two. If the person will lose the money, in both cases the person will losse all the monies.
Another thing to consider is the volume the capital will create in the market.
I am not a fan of leverage trading

[wxa7115]

~snip~

i never recommend anybody to make more than 10x leveraged trading , too risky and specilative over there once you get in.

It's very risky, but maybe it will also make you quickly have a lot of money. Maybe if your capital is large take levergae 5x that alone is enough. Remember you have to have more remaining funds to avoid liquidation. You should also think of alternaive strategies to avoid greater losses. I don't like this trade, I prefer spot trading because there is less risk than leveraged or future trading. Maybe if you learn it you can do it but everyone has their own pleasure to get the best profit.

Well actually it's applied for no matter huge or small capital.

You must be in the lowest possible of leverage , you know what? The flash drop and or the flash pump is the nightmare for the leverage trader and nobody knows when that shit will do occurred. So yeah the dark side of leverage trading much more popular to talk than the bright side one , that's the fact unfortunately.

I think the same, some traders make their trades thinking that their big capital is going to protect them from the movements of the market when it should be the other way around, the bigger the capital the more the trader needs to protect it.

In my opinion only expert traders should use leverage at all, the rest must content themselves by just trading with the capital they have, I understand this is not something people want to hear, but taking into account that the majority of traders lose money in the markets, adding even more risk to your trades by using leverage reduces the chances of actually making profits in a significant manner.

[tvplus006]

I only trade with leverage in the 1m scalp trading. Watching and strictly money management is recommend. Also no Emotion. Loss is always a part of „the game“

What leverage do you use in your trading and how often do you open new orders? As I understand it, using high leverage to open an order for such an amount is very risky. In addition, in such transactions, a stop loss must be set to limit losses.

[stomachgrowls]

I only trade with leverage in the 1m scalp trading. Watching and strictly money management is recommend. Also no Emotion. Loss is always a part of „the game“

What leverage do you use in your trading and how often do you open new orders? As I understand it, using high leverage to open an order for such an amount is very risky. In addition, in such transactions, a stop loss must be set to limit losses.

For leverage trading then this is something which isnt noob friendly thats why on the time that you consider out on touching leverage then you should have at least the idea on what you are dealing with.

Because if not then you would just be basically be wasting off your capital since it would be burnt out easily or wipe in fast pace manner if you do make a mistake.
This is why i dont  tend to touch up something goes beyond 50x to 100x or more.. My maximum risk tolerance could only be on 10x maximum.

[Rehan Zakir]

Leverage trading is very dangerous. I have lost my whole account balance in leverage trading. If you are trading with high leverage and market goes wrong from your position. You will get a huge loss. and something our whole balance vanishes.
I prefer you to don't trade in leverage trading. It is very risky. So, stay away from leverage trading.
If you want to do leverage trading then please start with low leverage such as 1-5X leverage. It will be your maximum leverage. Then you get success in leverage trading otherwise you get losses.
Spot trading is best then leverage trading. It is safe.

[Desmong]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

There is much difference here which is the risk management that is applied here. A trader that decided to trade with $5000 can stay quite longer in the market, if price or trend goes against them, which can absorb much volatility compared to a trader with just $100.
A trader that tend to trade the market, maybe let's assume Bitcoin against usdt which has high liquidity and the trade might to cut off if the trend eventually goes against the trader. The risk management here is high and no trader or mentor will advise anyone to indulge in this kind of trading style. I think this is pure gambling not trading cause it's too  risky.

[Stevie2008]

The difference is that you can trade $5000 with less cash, therefore risking less of your own money. However, your margin capital will take lose 50x faster when the market goes against you.
Also, if you trade a $100 account with 50x leverage, your trading fee will quickly eat up your account. Let's say that you have a trading fee of 0.10%. A position size of $5000 would mean a fee of $5000 x 0.001% = $5. This means that you can only afford 20 trades (without calculating profits/losses).
Now, if you are a decent trader and know how to trade the market, leverage can be used in a good way at lower ratios to boost your winners. Since you can control your losers with a stop loss, any patient trader can make money with leverage if they have a proper strategy. Also as someone previously mentioned, if you trade with a 50x leverage you are going to have a 0.02% liquidation level, meaning, the market can only go against you 0.02% before you are wiped out. If you trade a non-leveraged position of $5000 you don't run the risks of getting liquidated at all. Also, when you trade with leverage you are trading some kind of derivatives contract that derives its value from an underlying asset. For example, if you trade stocks with leverage you are not going to have ownership of that stock and the contract you are trading is just a mirrored contract of the stock price.
The last thing that is different is the overnight roll-over fee. When trading with leverage you are essentially borrowing money from the broker or the exchange and they will almost always ask you to pay this money back plus interest. So, when you hold positions overnight you are charged with a roll-over fee that can be anywhere between 0.02% - 1% depending on the broker. Try https://leverage.trading/ for more information on this topic, the website is pretty small but it has good information.
So, to sum up:
* The difference in position size is = Same
* The difference in risk = Proportionally more risk for a smaller account
* Trading fees = Same fee which will eat up a smaller account faster
* Roll-over fee = Most leveraged accounts are charged an over-night fee
* Underlying asset = Not owned when trading with leverage

[Crytpo-Guy]

There are numerous difference when it comes to leverage and margin trading. Leverage are only used when trading futures, and the higher your Leverage, the higher your profits and also the higher your risk when the market go against you. When trading with leverage, it is advisable to set your Limit order and Stoploss order, these order prevent your account from running into liquidation and helps give you your profits when the coin hit your limit order target.

[Raymond Gary]

There is a lot different within 1x leverage and 50 leverage irrespective of the trading amount , one thing you have to note is that using 50x leverage is on the high one so manage your risk, the market makers will see such exposure as an opportunity and you will immediately get liquidated from the market, this is not advisable except you want to do some experiment with your capital.

[tbterryboy]

Everyone has talked about how dangerous leverage trading is, but then who are these people who ended up with trading on leverage so much? We are talking about billions of dollars traded on leverage in crypto world every single day. If we are all saying that it is dangerous (and I do not do leverage trading as well) then who are these people who do it?

I believe that it is dangerous for people like me, and that is why I stay away from it. But, there must be some people who know what they are doing and they must be doing it to make some money. This is why it is not dangerous for "everyone", it is just like that for newbies or people who are not interested in it.

[tvplus006]

Everyone has talked about how dangerous leverage trading is, but then who are these people who ended up with trading on leverage so much? We are talking about billions of dollars traded on leverage in crypto world every single day. If we are all saying that it is dangerous (and I do not do leverage trading as well) then who are these people who do it?

I believe that it is dangerous for people like me, and that is why I stay away from it. But, there must be some people who know what they are doing and they must be doing it to make some money. This is why it is not dangerous for "everyone", it is just like that for newbies or people who are not interested in it.

Margin trading is dangerous for beginners and for those who do not comply with risk management. The leverage provided by the exchange will help you to operate with a larger amount in the transaction, and will also allow you to open a short position, which is impossible to do with spot trading.

[LUCKMCFLY]

There is a lot different within 1x leverage and 50 leverage irrespective of the trading amount , one thing you have to note is that using 50x leverage is on the high one so manage your risk, the market makers will see such exposure as an opportunity and you will immediately get liquidated from the market, this is not advisable except you want to do some experiment with your capital.

The truth is that leverage is a very sensitive issue, because each person has a version of their own risk, some are more daring to risk their money much more than others, in my case margin trading is different because the most I have leveraged in an operation it is x10 and with all the adrenaline to the maximum possible, some leverage x50 and the truth is I don't know how they have the heart to do it, because the risk for their positions to be liquidated is much more open than any other, in binance they have that option and I know that many people use it, I really admire them for having nerves of steel.

[tbterryboy]

Margin trading is dangerous for beginners and for those who do not comply with risk management. The leverage provided by the exchange will help you to operate with a larger amount in the transaction, and will also allow you to open a short position, which is impossible to do with spot trading.

It is risky for the newbies and it is risky for every veteran as well because the leverage makes sure that you lose ALL your entry when you are wrong and it is like gambling. However at the same time we are talking about something that is done by so many people and that is what I want to get attention towards. I mean there are so many people who do it, and the other half is making money from it.

As much as money lost, there are money earned as well. Maybe there are 1 million people who wagered 1 dollars each versus one guy with one million dollars and just one person won and 1 million people lost. It is not as clear as that usually, but the winner people could be less than losers, but they are still there.

[tvplus006]

...As much as money lost, there are money earned as well. Maybe there are 1 million people who wagered 1 dollars each versus one guy with one million dollars and just one person won and 1 million people lost. It is not as clear as that usually, but the winner people could be less than losers, but they are still there.

Not only individual traders earn money on the cryptocurrency market, but also exchanges, regardless of whether they are centralized or decentralized. I personally think that exchanges earn much more by manipulations that lead to the elimination of margin positions.

[SirLancelot]

...As much as money lost, there are money earned as well. Maybe there are 1 million people who wagered 1 dollars each versus one guy with one million dollars and just one person won and 1 million people lost. It is not as clear as that usually, but the winner people could be less than losers, but they are still there.

Not only individual traders earn money on the cryptocurrency market, but also exchanges, regardless of whether they are centralized or decentralized. I personally think that exchanges earn much more by manipulations that lead to the elimination of margin positions.

But I think centralized exchanges earns more money compare to the decentralized exchanges because more people uses them daily although with the huge traffic that they get, this can also cause their site to malfunction sometimes so they still use some of their money for the site's maintenance. Other than exchanges we also have wallets, cryptocurrency itself, and so on. The one that develops or maintains them do earn too.

@OP
Yes, there is a major difference because one is 5 usd and the other is 100 usd, the leverage multiplier that each of them use are also not the same. One is 1x and the other is 50x. Is there anything you want to know? or you are confuse if what to choose? I believe that the higher the leverage multiplier the higher the risk, also risk depends on the funds that you're going to use.

[Mahanton]

...As much as money lost, there are money earned as well. Maybe there are 1 million people who wagered 1 dollars each versus one guy with one million dollars and just one person won and 1 million people lost. It is not as clear as that usually, but the winner people could be less than losers, but they are still there.

Not only individual traders earn money on the cryptocurrency market, but also exchanges, regardless of whether they are centralized or decentralized. I personally think that exchanges earn much more by manipulations that lead to the elimination of margin positions.

Of course, aside on taking up some profits from those trading fees and other sources then they are really making out something in behind the curtains but its sure that it wont really be that noticeable
because if it does then its game over for their business once they had been caught on being that manipulative which it isnt really that easy for them to do so because it does have particular risks
but if not caught then they would really be enjoying for more revenue.We are seeing that these platforms are indeed making that much.

[LUCKMCFLY]

Margin trading is dangerous for beginners and for those who do not comply with risk management. The leverage provided by the exchange will help you to operate with a larger amount in the transaction, and will also allow you to open a short position, which is impossible to do with spot trading.

You are right, when a person is starting in the world of trading, it is necessary for him to know that there is margin trading, but that is not recommended from the start, because it is very easy for his position to be liquidated and he will be left without funds, and that It is not what you are looking for, in part a beginner trader before doing real trading it is necessary to trade with fictitious money, only with fictitious money you test your strategy and also learn to know the tools of the exchange, for that it is an advantage .

[hashrateproducts]

Margin trading is dangerous for beginners and for those who do not comply with risk management. The leverage provided by the exchange will help you to operate with a larger amount in the transaction, and will also allow you to open a short position, which is impossible to do with spot trading.

Margin trading is complex and at the same time, it's simple. If you don't understand, you would lose all your funds. Leverage is the gift of futures trading, and it's the only difference between spot and futures trading. Mind you, the higher your leverage, the higher your risks of liquidation and the lower your leverage the lower your risks of liquidation. Newbies are advised to start with a demo account and spot trading before going into margins and futures trading. Leverage depends on the trading Exchange you used. For me, I used Binance to trade futures and set my margins to Isolated which means my trade are isolated from themselves, which means liquidation in one trade, it will not take up the funds in others. It's mostly recommendable for beginners

[Oshosondy]

Not only individual traders earn money on the cryptocurrency market, but also exchanges, regardless of whether they are centralized or decentralized. I personally think that exchanges earn much more by manipulations that lead to the elimination of margin positions.

I do not think exchanges (trustworthy exchanges) are manipulating the market, the future derivatives market can be very volaltile at times which can be very significant than the spot market but this is not common but it can happen at anytime especially if massive bull run is very near or during the time in a way some people (traders on a particular exchange) will want to manipulate the price to favor them, this is never an exchange ways of making money, the profit earned by exchanges are the margin fee which is usually higher than that of spot trading.