Bitcoin leverage rules

What are the rules of Bitcoin leverage play? This is an issue that many netizens are concerned about. Next, the editor of PHP will bring you Introduction to Bitcoin Leverage Game Rules. Interested netizens should follow the editor to take a look!

Introduction to the rules of Bitcoin leverage play

1. Leverage ratio: Trading platforms usually provide different leverage ratios for investors to choose from , such as 2 times, 5 times, 10 times, etc. Investors should choose an appropriate leverage ratio based on their own risk tolerance and market forecasts.

2. Margin ratio: When conducting leveraged trading, investors need to provide a certain proportion of margin, usually between 10% and 50%.

3, Forced liquidation line and liquidation line: The trading system will set the forced liquidation line and liquidation line to control risks. When the investment loss reaches the forced liquidation line, the system will automatically close the position. If it reaches the liquidation line, the position will be forced to liquidate and the balance will be liquidated.

4. Rate: The trading system will charge opening fees, closing fees, overnight fees, etc. Investors need to understand the calculation methods and standards of these fees.

5, Go long (buy up) is an operation performed when predicting the price of Bitcoin to rise. For example, to predict that the price of Bitcoin will rise from US$10,000 to US$11,000, use 3 times For leverage, you can borrow 20,000 USDT, and the total funds reach 30,000 USDT.

6, Short selling (buying or selling) is to predict the price drop. For example, predict that the price of Bitcoin will drop from 20,000 USDT to 10,000 USDT, borrow 1 Bitcoin to sell, and wait for the price After the price falls, buy it and return it to make a profit.

7, Light position trading: In order to reduce risks, it is recommended to trade with light position. Even if the market fluctuates greatly, the loss can be controlled within an acceptable range.

8. Use of funds: Leverage trading magnifies the principal effect through borrowing and lending, but it also magnifies losses. If you use 10 times leverage, you can buy more BTC, but if there is a 10% loss, the actual loss will be 10 times the account balance.

9, Isolated position and cross position: In the isolated position mode, the profit and loss of each position only affects the margin corresponding to that position, while in the cross position mode, the profit and loss of all positions affect the entire position. Account margin.

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