100 times leverage of digital currency
bitcoin futures contracts, for example, at $10000, use $500 to open 100 times leverage, which will rise to $10500, which means an increase of 5%. 100 times leverage means 5 times profit and $2500.
how to use leverage
1. Long (buy up)
here, take BTC / usdt leverage trading as an example (usdt vs. US dollar, 1 usdt = US dollar) to introce how to use bitcoin leverage. Assuming that the current price of bitcoin is US $10000, and you predict that the price will rise in the near future, you can choose to be long.
if you have only 10000 usdt principal and the platform is triple leverage, you can borrow another 20000 usdt from the trading platform, so the principal is now 30000 usdt; If it is 5 times leverage, it can borrow 40000 usdt, 10 times leverage is 90000 usdt... And so on
buy three bitcoins with 30000 usdt, sell them when they reach 20000 usdt, and get 60000 US dollars of bitcoin, dect 10000 principal and 20000 loan, and make a profit of 30000 US dollars
if you don't use leverage trading, you can only make a profit of 10000 usdt if you buy a bitcoin at 10000 usdt
of course, if the judgment is wrong, bitcoin will only lose 5000 usdt in currency trading and 15000 usdt in leverage trading
2. Short (buy down)
take BTC / usdt triple leverage trading as an example. At present, the price of bitcoin is 20000 usdt. If you think that the price of bitcoin will drop to 10000 usdt, and you have 10000 usdt in your hand, you can borrow one bitcoin from the platform (short can only borrow the currency you choose to short), and sell it when the price of bitcoin is 20000 usdt, Then, when the bitcoin price is 10000 usdt, buy it back to the platform, and you can make a profit of 10000 usdt
in fact, bitcoin leveraged trading plays a role in amplifying revenue, but it also magnifies risk
there are many digital currency trading platforms, and the main procts promoted by each platform are also different. Some are mainly spot trading, and some are futures trading. Among them, futures trading is contract trading, that is, leverage. The better platforms are coin stations, which can be seen by contract friends.
In short, leverage is multiplication, and 100 times leverage is the original principal of the user multiplied by 100
assuming that a trader's capital of 50000 yuan is used for stock or spot trading, the trader's risk is only brought by the stock or goods with a value of 50000 yuan
if the 50000 yuan fund is all used for stock index futures trading, the risk that the trader bears is brought about by the stock or goods with a value of about 500000, which enlarges the risk by about 10 times, and of course, the corresponding profit by 10 times
extended data
leverage will increase in a fixed proportion regardless of whether the final result is profit or loss. Therefore, before using this tool, we must carefully analyze the income expectations and possible risks in investment projects
in addition, it must be noted that when financial leverage is used, the expenditure of cash flow may increase, such as the foreign exchange margin trading of youfuhui global gold exchange, otherwise, once the capital chain breaks, even if the final result may be huge income, the investor must be out ahead of time<
source: network leverage
Stock leverage is to speculate in stocks by increasing the principal (corresponding risk bearing) with the help of external forces. The ratio of the tradable amount to the principal is the leverage multiple. For example, if you have 100000 principal and can trade 3 million assets, the leverage is three times
in the futures trading of derivatives, the margin trading system is used. If the margin ratio is 10%, the leverage ratio is the reciprocal of the ratio, and the leverage ratio is 10 times; if the margin ratio is 5%, the leverage ratio is 20 times
extended information:
there are two ways to add leverage in the stock market. One is to finance, but the amount of financing will not exceed the collateral, so the leverage ratio will not exceed 2 times. Another way is to allocate funds. The leverage of allocation will be relatively high. In a bull market, many companies increase the leverage to 10 times or even 20 times
this means that you have 100000 yuan. If you add 10 times leverage, the allocation company will lend you 900000 yuan, and you have a total of 1 million yuan to trade. Suppose you buy a stock, then the total market value of the stock is 1 million yuan. When the stock falls to the limit, that is, 10% of 1 million yuan will lose 100000 yuan, which means that all your own principal will be lost, and the allocation company will force you to close the position