Hello friends,
Today I will talk about leverage trading, but you have to keep in your mind that leverage trading is more profitable and more risky.
In leverage trading you have to just predict the bitcoin price in future.Either it is increase or decrease.
In this trading their are 3 types of leverage slot that is 10x,50x,100. The more you take leverage the more is the risk in trading. I will show you with a example.
Let the price of bitcoin is $10000,So 1 BTC=$10000
More leverage=More risk
- If we decided that the bitcoin increases with 10x leverage then,
Case1.) Bitcoin increases $1000 and reached $11000
Our profit=$1000×10=$10000=1 bitcoin profit
Case2.)Bitcoin decreases $1000 and reached $9000
Our loss=$1000×10=$10000=1bitcoin loss,that means your amount is zero.
In this 10x leverage you have a more slot to cut trade.
$10000÷10=$1000 which means $9000 to $11000 in this
price range you can cut your trade with a profit or loss.
2.Similarly in 50x leverage trading.÷
Case1.) $10000÷50=$200 is a slot for trading if bitcoin increases to $10200 then you earn 1bitcoin profit.
Case2.)$10000÷50=$200, if bitcoin decreases to $9800 then your bitcoin is zero and their is a loss of 1 bitcoin.
3.Similarly in 100x leverage trading
Case1.) $10000÷100=$100 is a slot for trading if bitcoin increases to $10100 then you earn 1bitcoin profit.
Case2.)$10000÷100=$100, if bitcoin decreases to $9900 then your bitcoin is zero and their is a loss of 1 bitcoin.
I hope you understand this leverage trading. But remember it is more risky.
I suggest you to do 10x leverage trading when it is near it's support line because the chances of bitcoin to decrease below their support line is very less.And you have a slot for $1000 for trading.