What's Leverage Trading?

[Sureforex]

Leverage describes the practice of using borrowed capital for investment purposes.

The concept of leverage is widely used in finance, from describing company balance sheets to investing and trading stocks, derivatives, and cryptocurrencies. If an individual or entity is said to be highly leveraged, then their debt is large in relation to their assets or equity.

Companies use leverage when they finance operations, projects, or asset purchases by issuing debt rather than selling equity or using cash on hand. By taking about loans for large purchases, such as a mortgage to buy property, individuals also take advantage of leverage.

Whether in business, investing, or personal finance, the purpose of using leverage is to increase the opportunity for returns. However, using leverage increases risk because it requires traders to use borrowed funds which must always be paid back – regardless of whether the investment is successful. This means that borrowers using leverage can lose more than their initial investment.

[BashJasper]

Looking at the market now, I think it's the right time to apply leverage trading. I think its unidirectionally bearish at the moment which calls for shorting major altcoins at a reasonable leverage. 

Now, the question is which exchange offers the best futures trading condition?

[Sureforex]

9 hours ago, BashJasper said:

Looking at the market now, I think it's the right time to apply leverage trading. I think its unidirectionally bearish at the moment which calls for shorting major altcoins at a reasonable leverage. 

Now, the question is which exchange offers the best futures trading condition?

Choosing a platform to trade is a personal decision anyways, I trade on Bitget coz it provides a secure and reliable platform for traders to access high-quality leverage trading services and the Futures contracts on the exchange are mostly perpetual, meaning they do not have a concrete expiry date.

[BashJasper]

Thanks for the suggestion. I've got an account there; maybe it's time to explore more

[Emon]

19 hours ago, Sureforex said:

Choosing a platform to trade is a personal decision anyways, I trade on Bitget coz it provides a secure and reliable platform for traders to access high-quality leverage trading services and the Futures contracts on the exchange are mostly perpetual, meaning they do not have a concrete expiry date.

Well said, personally I'm also using it!

⚠️ High lev isn't recommended !

[BashJasper]

17 hours ago, Emon said:

Well said, personally I'm also using it!

⚠️ High lev isn't recommended !

Most probably you are an experienced trader cos high leverage ain't easy with emotion easily flaring up these days. Just started my trading journey with the exchange tho. Time will tell if I will go high leverage or not

[Emon]

16 hours ago, BashJasper said:

Most probably you are an experienced trader cos high leverage ain't easy with emotion easily flaring up these days. Just started my trading journey with the exchange tho. Time will tell if I will go high leverage or not

To be honest, high leverage is suitable for scalpers. Day trader/Swing traders shouldn't do that because SL hunting will slaughter them easily. Oh by the way, welcome to Bitget's world, hope you'll get success!

Edited August 20 by Emon

[BashJasper]

8 hours ago, Emon said:

To be honest, high leverage is suitable for scalpers. Day trader/Swing traders shouldn't do that because SL hunting will slaughter them easily. Oh by the way, welcome to Bitget's world, hope you'll get success!

Yeah, my risk management is still developing. For leverage trading, I've not done above 30x before on the exchange but majorly on top cryptos like BTC and ETH

Will share my pnl when I get largely successful haha

Edited August 20 by BashJasper

[Emon]

13 hours ago, BashJasper said:

Yeah, my risk management is still developing. For leverage trading, I've not done above 30x before on the exchange but majorly on top cryptos like BTC and ETH

Will share my pnl when I get largely successful haha

Doing higher lev on major currencies is quite safer .... Lol it's more safer if u keep your position small with high lev😷 !

[Emon]

16 hours ago, JohnnyRy said:

Amen, @Emon. My bot is repeatedly trading a 200,000 USD lot size on the GBPJPY, a.k.a, the Guppy, Dragon, Beast, or Widow(er)maker. It's a cross (or minor) currency pair, but much safer than crypto coins. "Crypto" is so scary, it reminds me of cryptozoology👽👻👹

Most probably, crypto is scarry for Forex traders because of high volatility 😑. But yeah ,at crypto space people can make money by spot trading but the only issue is ,we don't like to research properly before taking any trades!