10x vs 15x Margin Trade Question

[tvplus006]

Wow, new to me too, but I think that's something you need to ask your customer support too, to get a clearer answer. Or get us the exchange name, we can look up the faq maybe.

How did you miss my message, which is above yours? In this post, I described in detail the reason for the misunderstanding happening with the OP - https://bitcointalk.org/index.php?topic=5489226.msg63825657#msg63825657 And it does not matter on which exchange this happens if you open a margin position incorrectly.

[slaman29]

How did you miss my message, which is above yours? In this post, I described in detail the reason for the misunderstanding happening with the OP - https://bitcointalk.org/index.php?topic=5489226.msg63825657#msg63825657 And it does not matter on which exchange this happens if you open a margin position incorrectly.

Damn, sorry, yes I did miss your message, and you've perfectly explained it. Equity of course becomes less, somehow I totally missed that his trades were made concurrently. In my mind, he had opened these trades one after another, after closing previous. Well done, after all it was the simplest explanation and somehow it slipped past.

[logfiles]

ROE
Price
PNL

What you should be using to take profit is PNL (Profit and Loss) instead of ROE (Return of Equity) to avoid confusion. PNL is direct and easier to calculate, whereas ROE has been explained by tvplus006.

I wanted you to mention the exchange you are using so that I can help point you to some articles you can try reading, but you didn't bother to mention it. Anyway. I hope you understood what was confusing you.

[leonair]

If I trade 10x vs. 15x will the 10x make more profit than the 15x if I TP @5% or should it be the same amount of profit either 10x or 15x if I set the TP @5% ? For some reason if seems like Im getting less profit per trade when I just upped my margin from 10x to 15x. And I should ask if it is less profit using 15x, why is that? Thanks

PS Not seeing a tool to upload a file/ screenshot here. But can do if someone could tell me where the button is?

Future trading is very risky, it is equivalent to gambling. If you take 15x leverage and keep Tp 5% it will happen much faster than if you take 10x. And the more leverage you take, the more risk you have. Because high leverage always brings the liquidation price to shore. I do not encourage futures trading and try to stay away from futures trading myself. And in case of future trading leverage should not be more than 3-4x because 3-4x leverage will save a trader for a long time.

[kentrolla]

It's with 15x you would get more profit compared to 10x but there is only one factor which may have confused you and that's the trigger price and your position I mean limit orders because let's say we have set TP if the value drop below certain limit and by the time the order is executed if the price rapidly drops then you will get less than your expected 5% TP unless you have set proper conditions limit what should be limit for order execution as this plays a major role.

[Hamza2424]

Im making the same trade @15x as I was @10x. Basically $1000 @ 10x and $1000 @ 15x. And I am setting the TP @ 5%. I am getting $5 or so profit when the 10x trade triggers the TP and only $3 or so when the 15x triggers. It seems backwards to me as well. I would think if I used 15x margin the profit would increase or at least be the same when I set the TP @ 5%. There must be some equation or online calculator or someone that knows why this would be?

First of all ned to understand in the margin trade the profit is not only based on the leverage you've used, there must be the funding rate fees and other hidden fee charges so calculating the profit is not gonna be efficient as the fees may vary from the platform to platform but in your case.

On the same to check your profit just check your position size, fees, and funding rate, in dile situation the TP of 5% on 15X leverage is gonna give 5 times more profit because the positon size is according to 15x but when it comes to small trades it won't put a significant change between the 10x and 15x due to funding rates and the other fees deduction.

In simple more position size = more profit on 5% TP, because the TP is set based on the total trade position size, A friendly reminder I don't trade in leverage due to some of the reasons and I strongly discourage leverage trading due to religious and ethical point of view, people just lose money leverage because they gamble on trade while using leverage. 

[craigs]

Thanks for all the different answers and the constant warnings about scary leverage trading.  ;-) Much appreciated. Seems like many people are just as confused as I am… I stopped using ROE the instant we figured it out a few days ago. Using PNL now.

Haven't made that many trades as of yet with the new PNL setting. Seems to sorta be a similar issue; Less profit with higher leverage. Have to check it out more.

The one thing I did notice so far is that when I enter a trade say; $1000.00 long @ $100.00 @ 10x leverage taking profit of $10, the PNL rate says 10%.  If I do the exact same trade and only change one variable, the leverage @ 15x, the PNL rate says 15%…

Still trying to wrap my head around that one… Any ideas?