Mar 16, · Similarly in, Bitcoin trading market, liquidity providers lets users open leveraged positions by providing their funds. These leverage ratios however are much lesser than those of forex, because of Bitcoin’s sustained high volatility. The maximum leverage we personally have came across is , provided by the Bitcoin exchange and AvaTrade. Leverage is a key feature of a PrimeXBT trading platform, and can be a powerful tool for a trader. You can use it to take advantage of comparatively small price movements, ‘gear’ your portfolio for greater position size, and to make your capital grow faster. Leverage works by using a deposit, known as margin, to provide you with increased exposure. 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. Traders can choose the leverage .
Leverage in bitcoin tradingA Simple Bitcoin Leverage & Margin Trading Guide for Beginners » CryptoNinjas
Start trading. Benefits of using leverage Magnified profits. You only have to put down a fraction of the value of your trade to receive the same profit as in a conventional trade with any other exchange. Gearing opportunities. Using leverage can free up capital that can be committed to other investments. The ability to increase the amount available for investment is known as gearing.
Gaining from the market fall. Using leveraged products to speculate on market movements enables you to benefit from markets that are falling, as well as those that are rising. Leverage Calculator. Leverage calculator allows you to calculate the total amount of buying power that you will get on the PrimeXBT platform based on your capital Your capital.
Your buying or selling power. Your capital. Create Binance Account. First things first - you will need to open an account on the Binance cryptocurrency exchange. The process is pretty straightforward, and similar to what you can expect when creating an account on any online platform. Click on the leverage button to adjust the leverage you will be using.
As an example, we have reduced the leverage from 20x to 10x. To start off, it might be a good idea to switch to isolated margin. This gives you less flexibility but can reduce the total amount of losses you can take when having multiple positions open at the same time.
In this example, we will be using a limit order to enter a long position worth 0. The procedure is the same when you are opening an order for your selected cryptocurrency, in this case Bitcoin.
We set the limit price at 7, and we are using 20x leverage, so entering this position will require 3. Of course, you can use stop orders to manage your risk.
You can check out this tutorial from Binance to understand how different types of stop orders work and how they can prevent unnecessary losses. In the picture below, you can see an example of an order that has been filled successfully.
This position is worth 0. On the right side of the tab, the position can be closed with either a market order or limit order. While it may be hard to wrap your head around Bitcoin leverage trading at the start, this guide has hopefully made the process a bit easier to understand.
Thanks to the user-friendly interface, trading Bitcoin with leverage on the Binance digital asset exchange is relatively simple. Trade on Binance Futures. Of course, Binance is not the only cryptocurrency exchange that offers leveraged cryptocurrency trading.