I have just $500 on an exchange, but the exchange is encouraging me to trade mor

[crwth]

In essence, making that volume with just a $500 capital is difficult. That would erode your capital due to fees. Imagine the trading that you would have, and that would automatically be a negative result.

You know mathematically, you would be negative. 

Fees are definitely a silent killer and a lot of those trades just to make up that volume would be humongous. There's actually that hidden cost that nobody talks about that much.

[tygeade]

the exchange is just trying to persuade users to trade more and that's how their business runs.
But on the other hand, it's just giving you a chance to take part in the lucky draw.
There's no assured reward for that and so you are better off not to trade at such high leverage.
Mind you that leverage trading is very risk as you might already know but with 150x leverage, good luck on losing the money.

I don't think this was a lucky draw but a trading contest where you only win if you trade with the required volume. Winning in such contests is not a real task but the important thing to consider is the loses we have to face in order to reach the trading volume. Exchange will anyways make profits in the way of trading fees so this is a big win-win for those. It is us who need to carefully make our decision if we want to join the contest or skip this time. These contests might show promising money but there is huge risk involved in the back end which is usually hidden.

The primary goal of the exchange was to make OP use maximum leverage because the changes of winning are pretty think when high leverage is used. Exchange will make anyhow but it is us who will need to pay from our pockets so it is always better giving it a second thought about entering such contests.

[AmoreJaz]

In essence, making that volume with just a $500 capital is difficult. That would erode your capital due to fees. Imagine the trading that you would have, and that would automatically be a negative result.

You know mathematically, you would be negative.  

Fees are definitely a silent killer and a lot of those trades just to make up that volume would be humongous. There's actually that hidden cost that nobody talks about that much.

I would say, don't chase that trading volume with what you have. After all, you will only get one lucky chance in the draw. And more than likely, winning would be very slim. Better keep up with your pace and not bothered by this trading race to 75kUSDT. If you will indeed join this race, I would say, you will just get anxiety trying to reach that amount of trading.

So if you are not ready to face with so much stress and agitation owed to this target, then, don't chase it. Of course, the platforms wants you to participate and let you chase that one lucky chance. It is like you are also in gambling. Though if you are a skilled trader, maybe you can achieve this without much effort. But with the time frame given, I would say that it would be a lot of trouble to hit such target.

[Eternad]

In essence, making that volume with just a $500 capital is difficult. That would erode your capital due to fees. Imagine the trading that you would have, and that would automatically be a negative result.

You know mathematically, you would be negative. 

Fees are definitely a silent killer and a lot of those trades just to make up that volume would be humongous. There's actually that hidden cost that nobody talks about that much.

I would say, don't chase that trading volume with what you have. After all, you will only get one lucky chance in the draw. And more than likely, winning would be very slim. Better keep up with your pace and not bothered by this trading race to 75USDT. If you will indeed join this race, I would say, you will just get anxiety trying to reach that amount of trading.

It’s 75K trading volume with 10hrs remaining by the time OP created this thread. This trading volume can be meet through perps by placing quick position with consideration to the funding rate so that he will have lesser fee on his position if he timing it on the funding rate distribution.

The only problem is the remaining which makes the strategy not possible. It’s not truly worth it to pursue this target while the rewards is just a chance to win a price not a guaranteed price due to the fees charged on opening a position that will surely high based on the leverage use.

[rat03gopoh]

In essence, making that volume with just a $500 capital is difficult. That would erode your capital due to fees. Imagine the trading that you would have, and that would automatically be a negative result.

You know mathematically, you would be negative. 

Fees are definitely a silent killer and a lot of those trades just to make up that volume would be humongous. There's actually that hidden cost that nobody talks about that much.

If it's a specific invitation for users who have traded more than, say, $500k in their lifetime, $75k is a decent volume to get interested in. Exchanges can leverage user trading volume statistics to retain highly profitable traders; if returns decline, say, by only 30% over the previous year, they will selectively offer promotions like this.

[masulum]

If it's a specific invitation for users who have traded more than, say, $500k in their lifetime, $75k is a decent volume to get interested in. Exchanges can leverage user trading volume statistics to retain highly profitable traders; if returns decline, say, by only 30% over the previous year, they will selectively offer promotions like this.

Thats why i say this is not forcing like what OP say. If user able to reach $75k volume, this user can consider to join the offer. But it is only for a ticket promotion, and from that ticket not guarantee all users with ticket will win the prize only some place for lucky users. So, instead of focus too much on volume just for that ticket, if users feel it is hard to reach, then never join. Because a lot of whales and P2P merchants have asset up to 10 BTC or even more, they can easy join offer like this  , so, this offer is not match for users who only have $1000 or less.

[pawanjain]

the exchange is just trying to persuade users to trade more and that's how their business runs.
But on the other hand, it's just giving you a chance to take part in the lucky draw.
There's no assured reward for that and so you are better off not to trade at such high leverage.
Mind you that leverage trading is very risk as you might already know but with 150x leverage, good luck on losing the money.

I don't think this was a lucky draw but a trading contest where you only win if you trade with the required volume. Winning in such contests is not a real task but the important thing to consider is the loses we have to face in order to reach the trading volume. Exchange will anyways make profits in the way of trading fees so this is a big win-win for those. It is us who need to carefully make our decision if we want to join the contest or skip this time. These contests might show promising money but there is huge risk involved in the back end which is usually hidden.

The primary goal of the exchange was to make OP use maximum leverage because the changes of winning are pretty think when high leverage is used. Exchange will make anyhow but it is us who will need to pay from our pockets so it is always better giving it a second thought about entering such contests.

Isn't it clearly shown in the screenshot attached in OP that it's a chance to win a lucky draw.
They can't be giving out huge rewards to every trader achieving the trading volume and so it makes sense to give them a lucky draw instead.
But yeah, it depends on us where to go for it and trying achieving such high trading volume, risking our capital or avoid it to preserve the capital.

[Muba20]

I have just $500 on an exchange but the exchange is showing me this on the perpetual trading part of the exchange:

That was the countdown and it remains just 10 hours, 40 minutes and 40 seconds. If I have $500, that means I have to go for 150x leverage or lesser but still very huge leverage on more positions.

What is the exchange trying to encourage? The exchange just want my trading fund to get liquidated just because of their personal gain.

They are deceiving themselves because I do not need any lucky draw that I may not even gain from.

Exchange platforms do this for their marketing strategy. If there is $500 in an exchange, they want to take money from that user by trading it with 150x leverage. They usually try to persuade those who have a little more balance to participate in that trading in various ways. I have seen this on many trading platforms so far. However, I have not involved myself in any such offer, because I know that even though the offer seems very easy, in reality it is difficult for me to prioritize those offers, rather I think that I will lose my deposited money. I think, instead of getting annoyed by such offers, I should stay calm. If you are not satisfied with the trading conditions, it is better to avoid it. Whenever I deposit money on an exchange, such offers keep coming to me. But I do not prioritize them and focus on my work.

[el kaka22]

I agree, when you have a small amount, it means that you are going to take a big risk when it comes to constantly trading, because fee's would eat up on it if you are not careful. Plus you can't be wrong too many times in a row, you have to be right more often than not. If you are wrong a few times in a row, you will end up with almost nothing. And you can't like trade just 20 bucks, I mean in theory you probably can in some pairs, but that would be too small, and even a 10% profit would be only 2 dollars.

So we are talking about each trade being a huge chunk of your capital. You could do 100 dollars, which is 20% of your entire capital, and even then a mere 10% profit, would be just 10 dollars, and you are not going to be happy with that. I would do long term holding for that capital.