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What is leverage in crypto trading
Leverage allows traders to trade cryptocurrencies or other financial assets using borrowed funds. This method increases a trader's buying or selling power by allowing him to trade with funds other than his own. Depending on the cryptocurrency exchange, a trader can borrow up to 100 times his or her current balance.
The leverage value is expressed as a ratio, such as 1:5 (5x), 1:10 (10x), or 1:20 (20x), indicating the number of times the initial capital is increased. Assume we have $100 on an exchange and want to open a $1,000 Bitcoin position (BTC). Our $100 would only be worth $1,000 with 10x leverage.
In addition, leverage can be used to trade various cryptocurrency derivatives. Margin trading, leveraged tokens, and futures contracts are all examples of leveraged trading.

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