How to use lever
1, long (buy up)
Taking BTC/USDT leveraged transaction as an example (USDT against USD, 1USDT = 1USD), this paper introduces how to use bitcoin leverage. Suppose the current price of Bitcoin is $654.38+00,000, and you predict that the price will rise in the near future. At this time, you can choose to go long.
If you only have a principal of 65,438+0,000 USD T, and the platform has three times leverage, you can borrow another 20,000 USD T from the trading platform, so the current principal is 30,000 USD T; If the leverage is 5 times, you can borrow 40 thousand USDT, if the leverage is 10 times, it is 90 thousand USDT ... and so on.
Buy three bitcoins with 30,000 USDT, and then sell them when they reach 20,000 USDT, and get 60,000 dollars of bitcoins, and make a profit of 30,000 dollars after deducting 1 10,000 principal and 20,000 loans.
If you don't use leveraged trading, go directly to spot trading (currency trading) and buy 1 bitcoin with 1 USD, you can only make a profit of 1 USD.
Of course, if the judgment is wrong, Bitcoin will fall to 5,000 USDT, currency trading will only lose 5,000 USD T, and leveraged trading will lose 1.5 million USD T.
2. Short (buy)
Take BTC/USDT triple leverage transaction as an example. At present, the price of Bitcoin is 20000 USDT. If you think that the price of Bitcoin will drop to 1 1,000 USD T, and you have the principal of 1 1,000 USD T, you can borrow Bitcoin of 1 from the platform (only short currency can be selected), sell it when the price of Bitcoin is 20,000 USD T, and then wait for the price of Bitcoin to be.
Bitcoin leveraged trading actually plays a role in amplifying income, but it also magnifies risks.
There are many trading platforms in digital currency, and the products promoted by each platform are different. Some are mainly spot trading and some are futures trading, among which futures trading is contract trading, that is, leverage. A better platform is the currency station, which can be seen by friends who make contracts.