100x leverage ? Help me to understand this

[Weblycos]

Hello every one, I think i am kinda confuse. I am trying to get in to bitcoin trading but i am a little bit confuse. Please read this below and if possible help me out.

if i buy 1000$ worth of bitcoin position ( with 100x leverage ) when the bitcoin price is 7500$ and if i sell when the price is 8000$ . How much money i could potentially earn from this? Also as 100x leverage i will also lose all my money earlier. For this case, how low from 7500$ price hit, i could lose all my money?

I am starting to understand this but need some one who is in this game could help me understanding this .

 

[djelica]

100x leverage is every percent in your favor you get 1x your initial investment, first percent down from your entry you lose your investment.

So if you catch 10% move with 100x leverage with your investment of $1000, you will end up having $10,000, keep in mind if your position is buy, and price does go up say 10% you are not only going to get 10x your position but also extra since btc price went up. For downwards move you get less since btc price went down.

Its gamble and if you do manage to catch 3 trades in a row with starting $500 you can get a lot of money, say you get 3 times 5% with 100x leverage, you do the math.

But you are more likely to lose all the money then win.

 

[Weblycos]

Thank you for the explanation but why would you say i am more likely to lose then win?

 

[djelica]

You will see my friend, especially with 100x leverage.

 

[Weblycos]

I think i understand what you are trying to say. If i invest 1k with 100x leverage, if the price down only 10$ then all my investment is gone . I am really new in crypto trade and don't want to lose all the money for sure.

 

[djelica]

You dont look price numbers, you look percents. Price can be $100k but percents is all that matters.

With 100x leverage you are giving your trade 1% room to go against you, thats where your trade gets liquidated.

As a starter, you shoul trade super small positions and super small leverage to get yourself familiar with process.

 

[drogon]

You dont look price numbers, you look percents. Price can be $100k but percents is all that matters.

With 100x leverage you are giving your trade 1% room to go against you, thats where your trade gets liquidated.

As a starter, you shoul trade super small positions and super small leverage to get yourself familiar with process.

Thinking of trading small amounts on bitmex. So can you explain the above with a 10x leverage with stop loss? Edit Watching Youtube video.

 

[djelica]

Thinking of trading small amounts on bitmex. So can you explain the above with a 10x leverage with stop loss? prob will watch some Youtube videos.

Every 10% in your favor you double your investment, 10% against you is your liquidation point.

So lets say you put $1000 x10 leverage and you catch 10% move, you will end up having $2000.

Earnings look nice, losses are ugly, so take care

 

[Weblycos]

I am so bad in math. OMG, its quiet unbelievable to be honest. with 100x leverage i am investing 1$ in bitcoin at price 7550$. when i am closing the trade with 7560$ ( with 10$ price raise ). how much i will earn? i think i can take small risk.

 

[robertign0]

Does your broker/platform provide a demo option, if yes, then just try and play with it..

 

[drogon]

Every 10% in your favor you double your investment, 10% against you is your liquidation point.

So lets say you put $1000 x10 leverage and you catch 10% move, you will end up having $2000.

Earnings look nice, losses are ugly, so take care

Thanks, will start will small amount and x2

I guess there is also stop loss to prevent liquidating whole balance.

 

[Weblycos]

unfortunately they don't

Does your broker/platform provide a demo option, if yes, then just try and play with it..

 

[Abcxyz77]

Depending on your broker call margin rules, some will close all your trades before you reach 90% loss or some certain numbers. They do not let your account in negative.

 

[djelica]

I am so bad in math. OMG, its quiet unbelievable to be honest. with 100x leverage i am investing 1$ in bitcoin at price 7550$. when i am closing the trade with 7560$ ( with 10$ price raise ). how much i will earn? i think i can take small risk.

Get back to elementary math and work those percents out.

unfortunately they don't

if you are on bitmex they do

 

[hitndrun]

As a rule I don't go over 3X. Everything higher than that, the risk becomes a real concern if it goes the wrong way for you.

 

[55trillion]

unfortunately they don't

Open an account (demo) with Nordfx (Not affiliate) trade for a week and you will understand leverage, By the way how come you forgot spreads(Which is too high in BTC)

 

[hitndrun]

Here is the "TestNet" link.

https://testnet.bitmex.com/

Best to try your theories out first. Once you feel comfortable, then start trading with real money. I found that getting a friend to compete against ,makes the simulation of trading more real.

 

[Webbers UX]

By no means should you EVER do 100x leverage