🔥🔥HOW I MAKE PROFIT WHILE THE MARKET IS STILL DOWN HARD !!🤑🤑
🔴 Simple risk management strategy for futures trading 🔴
Let's say you have $100 to trade.
1. Position sizing with leverage:
The entire leveraged position should not exceed $100. Using 50x leverage means your margin should not exceed $2. This makes your entire position $100, ensuring there is no liquidation point as the position is within your total funds.
2. Why and When to Use Leverage:
Using 5x leverage versus 50x leverage means you are lending 5x your money versus 50x.
Higher leverage increases risk; trading a position larger than your money will result in liquidation. If you don’t exceed your money, you can avoid liquidation.
3. Example:
Open a position with $1 margin and 50x leverage, making the entire position $50. If the chosen cryptocurrency moves up 1%, you have made 50% on your margin ($0.50). A 10% move results in a 500% gain on your margin ($5 on your $1 margin).
🔴 Key Point:
Always keep your leveraged position within the total amount to avoid liquidation. Leverage allows for greater potential profits but increases risk, so use it wisely. Manage your positions and leverage to ensure you are trading safely and effectively.
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