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How a position in PEPE swallowed Million dollars There is an X handle named cryptonerd75. He has posted a tweet that states how he has lost a million on his PEPE and he is thinking about put an end to his life. What are the lessons? If you're taking a leveraged position make sure you don't keep entire margins in perps. Keep the leveraged margins in perps and take few margins to spot so that a liquidation event won't trigger your funds in spot. Let's say you've $100,000. You take 10x leverage of $1M. When time passes by and if you're still in the position make sure that you readjust the leverage in Binance (that nerd75 guy said to be trading in Binance ) and transfer your remaining amount to spot. let's say you take 20x from 10x and transfer $50,000 to spot. By doing this you save atleast 50% of your funds. Secondly always always learn to respect markets and always put Stop Loss in your trade so that you won't get wiped out. Atleast when you're going for a sleep learn to put Stop Loss. I'm damn sure none of the traders would follow risk management from experienced traders. Bcoz of that , I've given pragmatic suggestions of SL while sleeping and moving money to spot by adjusting leverage for the traders. Hope you'd atleast follow these pragmatic things in your trading and won't end up losing a million . Good Luck ! #PEPE #RiskManagement #Leverage

How a position in PEPE swallowed Million dollars

There is an X handle named cryptonerd75. He has posted a tweet that states how he has lost a million on his PEPE and he is thinking about put an end to his life.

What are the lessons? If you're taking a leveraged position make sure you don't keep entire margins in perps. Keep the leveraged margins in perps and take few margins to spot so that a liquidation event won't trigger your funds in spot. Let's say you've $100,000. You take 10x leverage of $1M. When time passes by and if you're still in the position make sure that you readjust the leverage in Binance (that nerd75 guy said to be trading in Binance ) and transfer your remaining amount to spot. let's say you take 20x from 10x and transfer $50,000 to spot. By doing this you save atleast 50% of your funds. Secondly always always learn to respect markets and always put Stop Loss in your trade so that you won't get wiped out. Atleast when you're going for a sleep learn to put Stop Loss. I'm damn sure none of the traders would follow risk management from experienced traders. Bcoz of that , I've given pragmatic suggestions of SL while sleeping and moving money to spot by adjusting leverage for the traders. Hope you'd atleast follow these pragmatic things in your trading and won't end up losing a million . Good Luck !

#PEPE #RiskManagement #Leverage

Disclaimer: Includes thrid-party opinions. No financial advice. May include sponsored content.ย See T&Cs.
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#Perpetual #futures #RWA #Risk Why do Futures Market exist? Part 2 of the article ๐Ÿ‘‡๐Ÿ‘‡๐Ÿ‘‡ Hypothesis 1 - $180. He had made a profit of $20/ ton on hedging the contracts he sold. Anyhow he would be providing delivery of those contracts in physical goods. He'd continue his risk mitigation by doing the trade in forward contracts. He made his $20 on mitigating the risk. But in real terms, there is no change in prices. He would keep on continuing to manufacture Aluminium. He would continue to sell his current obligations in spot markets by delivering to his regular customers. This is what we call hedging. In this case, the manufacturer has mitigated the risk by selling in future markets. He would continue to sell his products as he has to do it to continue his business. In future markets, he wouldn't have a substantial premium yet he would continue to do it simply to manage the risk. Hypothesis 2 - $220. He had made a loss of $20/ ton on hedging the contracts he sold. Anyhow he would be providing delivery of those contracts in physical goods. He'd continue his risk mitigation by doing the trade in forward contracts. He lost $20 on mitigating the risk. But it wouldn't affect him as he simply mitigated the risk by placing future contracts. Anyhow he is going to settle the contracts with his Aluminium. He sold the Aluminium at $200 when the spot was around $180. This is how a manufacturer mitigates the risk. In the coming forward markets, he would fetch more premium for his products. It's a win-win situation for him. Now replicate this to crypto and we could understand the concept of derivatives and risk mitigation it plays in the protection.
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