See original
O x L
--
Trader advice During my journey in crypto trading, I have learned a lot and I share my knowledge
1: Liquidation Price
The liquidation price is something that all traders fear, but have you ever wondered why we always get liquidated so quickly? This happens more to new traders who operate with little capital, for example, if our total balance is $25 and we operate with $15, meaning we have $10 left to withstand losses, and we use 75X leverage, which would be $1125 thanks to that leverage. If we operate upwards, for example at $XRP , and at the moment of our operation, it is at $4, then our liquidation price would be $3.93, so if the price goes against us and reaches that price, it gets liquidated. As you can see, it's very little to withstand losses.
But what if we had $100 in total balance and operated with the same $15 at the same price with the same leverage upward? Our liquidation price would be $3.66, which is much more to withstand losses. Now imagine having more balance; our support would be more. Imagine that you have analyzed the market well, and the operation goes in your favor; you would have more confidence because you have more liquidation price to withstand the losses.
The balance affects the liquidation price; the more $ you have, the more support; the less $ you have, the less support.
Beware ⚠️ this is advice; trade at your own risk. Your money is at risk, and you are responsible for it.
1: Liquidation Price
The liquidation price is something that all traders fear, but have you ever wondered why we always get liquidated so quickly? This happens more to new traders who operate with little capital, for example, if our total balance is $25 and we operate with $15, meaning we have $10 left to withstand losses, and we use 75X leverage, which would be $1125 thanks to that leverage. If we operate upwards, for example at $XRP , and at the moment of our operation, it is at $4, then our liquidation price would be $3.93, so if the price goes against us and reaches that price, it gets liquidated. As you can see, it's very little to withstand losses.
But what if we had $100 in total balance and operated with the same $15 at the same price with the same leverage upward? Our liquidation price would be $3.66, which is much more to withstand losses. Now imagine having more balance; our support would be more. Imagine that you have analyzed the market well, and the operation goes in your favor; you would have more confidence because you have more liquidation price to withstand the losses.
The balance affects the liquidation price; the more $ you have, the more support; the less $ you have, the less support.
Beware ⚠️ this is advice; trade at your own risk. Your money is at risk, and you are responsible for it.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
346
0
Replies 0