Dec 16, · Bitcoin Leverage Trading T rading Bitcoin derivatives with leverage does not require you to own any Bitcoin. You can make a potential profit by predicting the direction of BTC price. Many exchanges offer various leverage for Bitcoin trading. For example, BTCC bitcoin futures trading exchange offers 10x, 20x, 50x, x and up to x leverage. Bitcoin leverage trading allows you to control more sizable positions and make more profits. In many cases, you can control 10 to 20 times the amount required to open the position. The amount put down to open a trade in bitcoin leverage trading is known as margin. CFD / Derivatives trading with leverage is strictly forbidden in the USA and for holders of US passports. However, it is allowed to directly buy and sell Bitcoin and other cryptocurrencies in the form of normal spot market trades, where you actually buy and sell the underlying asset, without leverage. Current Cryptocurrency Margin Broker Offers.
Trade leverage bitcoinBitcoin leverage
One of the most attractive things about Bitcoin trading is the ability to use leverage. It gives traders an option to trade larger amounts even with small capital. In this context, the Bitcoin trading sector functions much like its experienced counterpart, the forex trading sector that also offers similar options to its traders.
For instance, a forex leverage represents the ability of trader to place trades 50 times more than their actual capital. Similarly in, Bitcoin trading market, liquidity providers lets users open leveraged positions by providing their funds. The maximum leverage we personally have came across is , provided by the Bitcoin exchange and AvaTrade. While it is true that high leverage yields high returns, the same is applicable in the case of losses as well.
But in case the price action ditches your predictability, the loss would be as much as the profit. The same is applicable when you bet on downside price direction, by calling a short position. However in this case, what you borrow is Bitcoin rather than cash so as to sell them at a peak.
In case the prediction becomes invalid and the price starts to move north, you become obligatory to buy Bitcoins back at a high to pay your lender with interest. Day Traders are not serious investors, as they say.
However, in terms of Bitcoin, investors are not serious day traders. At the same time, it is important to notice that only those professional traders managed to go home with profits who were limitedly dependent on leveraged trades. Indeed, they were focused more on managing near-term risks rather then fantasying massive returns. To cut a long story short, they understood how Bitcoin volatility could put a dent on their leverage if their prediction goes invalid; and therefore they borrowed less and played only for small gains by setting proper price limits.
Many experts interpreted the crash to have been caused by margin trading — a kind of leverage system that requires traders to deposit collateral to cover credit risk. Margin Trading critic Raffael Danielli blamed a certain exchange for causing such a drastic drop, saying that:. There were still some who actually managed to avoid losses during such unannounced price movements. As the price crashed down to from , many seasonal traders found this opportunity to call long positions on small leverage towards the upside risk They eventually covered up their losses as the price literally bounced back above to test the primary upside risk near Increasing your leverages could simply introduce amplified volatility to your Bitcoin positions.
Thereby, it is ideal to place minimally leveraged trades, like most of the professional traders do. Deposit more money, make less trades. Chart Credits: BrCapoeira. Yashu Gola is a Mumbai-based finance journalist. DeFi Index Tokens. Support team are very interactive with the community. Unique trading pairs. Low withdrawal fees. Very high liquidity. About Team Contact.
High Liquidity Easy Interface One of the oldest derivative exchanges Mega amounts of cash in reserve Entertaining trollbox. Deposit Fees: No Withdrawal Fees: 0.
Yes Founded? April Leverage? High Liquidity Fiat deposits Trading competitions Customer support. Deposit Fees: no Withdrawal Fees: 0. No Founded? March Leverage? June Leverage? July Leverage? November Leverage? Bitcoin leverage copy trading Forex trading x Commodity trading x.
Feb Leverage? BTC - x. Yes - Full.