Learning Financial Terms with @Dark Knight Signals

Leverage: Leverage tells you how many times your money you will trade with when you open a position. The more you increase the leverage, the more profit or loss you will make.

Tip: Try to keep leverage generally between 3-5x, 2x is ideal for long positions.

Example: If you are long and leveraged 2x with all your money, you will liquidate if the value of that asset falls by 50%. If you have 3x leverage, you will liquidate if it falls 33%, etc.

If you are short and leveraged 2x with all your money, you will liquidate if the value of that asset increases by 50%. If you used 1x leverage (i.e. no leverage), you will liquidate if the value of that asset increases by 100%. So it is possible to liquidate on short trades even without leverage.

Question: If BTC is currently worth $60,000 and I open a long position using 3x leverage, at what price will I liquidate? Write your answers in the comments.