Pro Tips for Future Trading$BTC -$ETH $BNB #MarketDownturn
*Use Maximum Leverage in All Your Trades.**
Here’s why it can be beneficial:
Case 1:
You have $100 in your wallet and decide to open a Bitcoin trade using $50 with 20x leverage. This means your position size will be $50 × 20 = $1,000. You’ll still have $50 left in your wallet.
Case 2:
With the same $100, you open a Bitcoin trade using $20 with 50x leverage. Now, your position size will also be $1,000 ($20 × 50). But this time, you have $80 left in your wallet.
What’s the Difference?
1. Same Trade, Different Leverages: Whether you use 20x or 50x leverage, your profit or loss will be the same as long as the price moves the same amount.
2. More Flexibility: By using less of your wallet balance for a trade, you have more remaining funds. This allows you to adjust your position size or entry price if the market fluctuates significantly.
3. More Trade Opportunities: With more balance left in your wallet, you can open additional trades while keeping the risk at the same level.
Note: High leverage becomes risky only when you use a large portion of your wallet balance. For example, if you use $50 with 50x leverage, your position size will be $2,500, which increases your risk significantly.