BTC Leverage on Binance

[Anonymous No.18985892]

So if I trade at 125x leverage with 5,000 USD, technically I am working with 625,000 USD of BTC, right? So when I'm trading and the price swings up, I'm up 10% of 625,000 USD minus the original principal of 5,000 USD, right? So I would make off with 57,500 USD right?

What happens if I go negative with leverage? Binance isn't actually going to come after me and say I owe them 500,000 USD or something ridiculous right? I know technically I would owe them that much but are there stories or evidence that they've ever attempted to collect on such a ridiculous fuck up before?

[Anonymous No.18985923]

>>18985892
you get liquidated at a certain point way before that happens.

[Anonymous No.18985932]

>>18985923
what does "liquidated" mean

[Anonymous No.18985941]

>>18985892
if you are new to leverage trading, use an exchange like prime-xbt.io that lets you use your balance as collateral and start with only a small portion of your funds.

[Anonymous No.18985954]

>>18985932

it means your debts are sold at market price and you lose your collateral.

[Anonymous No.18985970]

>>18985954
What is my collateral here. the principal? So I would just lose the $5000

[Anonymous No.18985975]

>>18985892
>Binance
>trade at 125x leverage

[Anonymous No.18985989]

>>18985970
on binance, yes

[Anonymous No.18985998]

>>18985932
It means you lose all your 5,000 USD. 100x leverage = your position is 100 times more sensitive. So a 1% upswing means 100% gains (double your money). A 1% downswing means 100% loss (yes, all 5000 gone). This is called being liquidated. In reality exchanges have liquidation points slightly before 1% to ensure they can unwind your position on the order book, so it's even smaller than 1% downwards before you lose all your money. You should never be getting liquidated though. Set stop losses.

[Anonymous No.18986035]

>>18985998
unless you use an echange that allows you to use your balance as margin. on prime-xbt.io you can have a balance of 10k and a trade size of 1k at 100x leverage and you can go -5% and not be liquidated.

[Anonymous No.18986038]

>>18985998
damn that's fucking insane.

[Anonymous No.18986050]

>>18985998
Wouldn't this be the logical way to trade?

[Anonymous No.18986068]

>>18985998
wait. so a 1% upswing would mean I would make 500,000 off a 5,000 principle?
Why doesn't everybody do this

[Anonymous No.18986096]

>>18986068
cause people are idiots and use exchanges that don't allow balance margin and they get liquidated.

[Anonymous No.18986109]

>>18986068
Lol no 100% on your principal. So 5,000 on 1% upswing

[Anonymous No.18986123]

>>18986035
Interesting. Sounds hella risky though

[Anonymous No.18986125]

>>18986068
No.

You really shouldn't be trading if you can't multiply.

If you go in with 100x leverage on 5k, you are buying 500k worth. So if the price goes up by 1%, you make 1% * 500k = 5k. You'd be doubling your money.

[Anonymous No.18986129]

>>18986068
.....dude just read what he said

[Anonymous No.18986134]

>>18986123
leverage is always risky, but there are ways to reduce risk and maintain high reward potential.

[Anonymous No.18986187]

This place has turned into a bunch of teenagers lol

[Anonymous No.18986221]

>>18986068
If you bought $5000 of Btc normally (1x leverage) and it went down 1% you’d have a loss of 50$ .... if the 1% decrease was on 100x leverage you just lost 100% of your initial investment

[Anonymous No.18986309]

>>18986221
wrong. leverage is a debt ratio. there is no debt if you buy BTC. 1x leverage is if you buy 1 BTC with 50% of the money to buy BTC.

[Anonymous No.18986356]

>>18986068
5k$
and catchin bottoms or tops is harder than u think

[Anonymous No.18986463]

>>18986221
This seems very silly. Just 50000000 leverage everything and dont sell until its in the green. If it is never in the green then don't sell.

[Anonymous No.18986502]

>>18985998
So what would happen if someone went long with 10 million dollars x125 since $150? Binance goes bankrupt?

[Anonymous No.18986602]

>>18986125
>You'd be doubling your money.
Not so fast there, you have to take into consideration the fees, for binance the fees are 0.4%, so if you multiply that to 500k, you looking at 2.5k when buying and 2.5k when selling.

[Anonymous No.18986616]

>>18986502
there's limits to how big your position size can be. I think for 125x, the highest your position size can be is 50k