Try Phemex & get $72 free ➡️http://Phemex.BitBoy.Live
Try ByBit & get up to $90 free ➡️ http://ByBit.BitBoy.Live

Crypto Cred Article on Risk Management: https://medium.com/@cryptocreddy/comprehensive-guide-to-position-size-and-leverage-2e27764ce9e0

While many try to tell you that you cannot leverage trade safely, that is a lie. Learn about position size, stop losses, & risk management.

Leverage is a fairly simple concept instead of putting up the full market value of an asset such as Bitcoin, the trader operates on ‘margin’ 25:1 leverage of 25x means that for every dollar the trader stakes in equity, they can trade $25. This is also known as a 4% margin trade.

Leverage trading, also known as margin trading, is a system that allows the trader to open positions much larger than his own capital. Leverage usually refers to the ratio between the position value and the investment needed and Margin is the percentage of the position needed.

Buying on margin is borrowing money from a broker in order to purchase stock. You can think of it as a loan from your brokerage. Margin trading allows you to buy more stock than you’d be able to normally. To trade on margin, you need a margin account.

Margin trading confers a higher profit potential than traditional trading but also greater risks. Purchasing stocks on margin amplifies the effects of losses. Additionally, the broker may issue a margin call, which requires you to liquidate your position in a stock or front more capital to keep your investment.

Trading using leverage is trading on credit by depositing a small amount of cash and then borrowing a more substantial amount of cash. For example, trade on the EUR futures market has a contract value of $125,000, but by using leverage, the same trade can be made with approximately $6,000 in cash.

Not even all, if you lose 70% of your leverage, your positions would have been wound-up, depending upon the broker you’re trading with. In case of the sudden market moves, your entire account capital would have been wiped out and there appears a negative balance.

Stop orders, which are orders to buy or sell a security once it reaches a certain price, can help bitcoin investors lock in gains or limit losses. For example, you can use a stop order to buy bitcoin once it rises to a predetermined price.

Thank you for watching the video.Long or Short Bitcoin Safely and Risk Management & Stop Losses 2020 Tutorial. If this video helps you, please subscribe to my channel and like, comment, and share the video.

Subscribe to my channel: https://bit.ly/39AJqPx

If you would like to be highlighted on my channel please reach out to me at BitBoy@BitBoyCrypto.com

●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬●

How to support the channel:
Download the Brave Browser ➡️http://Brave.BitBoy.Live
Get 15% off for crypto tax prep ➡️http://ZenLedger.BitBoy.Live
Get $50 free with the MCO Card ➡️http://MCOCard.BitBoy.Live
Get $60 Free with ByBit Margin Trading ➡️http://ByBit.BitBoy.Live

●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬●

Follow Me on Social Media
🌲 linktr.ee/BitBoyCrypto
🤓 Website: https://BitBoyCrypto.com
✉️ Join the BitSquad on Telegram: https://t.me/BitSquad
📸 Instagram: https://www.instagram.com/bitboy_crypto/
🐦 Twitter: https://twitter.com/Bitboy_Crypto
✉️ Telegram: t.me/BitSquad
👤 Facebook: https://facebook.com/BitBoyCrypto

●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬●

Beards & Bitcoins Podcast on iTunes, YouTube & SoundCloud!
🎵 iTunes: https://apple.co/2Nm7fmN
📺 YouTube: https://bit.ly/2IVN8cz

●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬●

All of our videos are strictly personal opinions. Please make sure to do your own research. Never take one person’s opinion for financial guidance. There are multiple strategies and not all strategies fit all people. Our videos ARE NOT financial advice.

source

Leave a Reply

Your email address will not be published.

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed