Leverage Trading

[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.