Many of you heard about people liquidated in leveraged trading.
You also heard that some other people make huge profits in leveraged trading.
How can make profit without lost all money, I will explain it in a simple way.
Let's take a look at Binance Futures.
Before opening a position, use the calculator in the top right side at Binance Futures USDT-M.
It is necessary for you to know your risk/yield.
here are some examples, I choose small amount to show it to members to make it a very small amount. It can be a much smaller position, you don't need a big amount if your capital is limited.
Opening a short position with at 25000 USD and plan to close position at 24800 USD with the position size of 0.1 BTC with 100x leverage. Your actual "invest" is 25 USDT for this position. As calculator shows, if you open short position at 25000 and close position at 24800, you will get 20 USDT profit. It is a good profit. Your portfolio will increase 20 USDT.
Here is another sample :
Same position size, open at 25000 and if close it at 24500, it will bring you 50 USDT. It is %200 profit.
let's look long position.
Same position size. Open at 25000 and close at 25500, will bring you also %200 profit ( 50 USDT ). Not bad?
For people who want to open position and carry it for long time, let's look at below scenario.
If you open long position when Bitcoin price was 20000 few days ago and close position today at 25000 with very very small position size, 0.01 BTC position size which is 2 USDT will bring you 50 USDT profit. %2500 profit.
If make this position with 0.1 BTC ( 20 USDT ) makes you 500 USDT profit.
you dont need open huge positions. Even a small position can make you have nice profit.
What do you need to avoid?
Avoid open position which has a significant portion of your portfolio.
Recommend use %1 or %3 of the portfolio to open position.
Example: If you have 200 USDT, open position size 0.01 or 0.03 BTC ( 2 to 6 USD ) is a safe way to prevent liquidation.
Monitor market trend wisely and be sure that you are open on the right direction. ( long / short )
https://www.binance.com/en/futures/ref/43727743
If you join Binance Futures with my link, you will also get %10 discount on trading fee.
Futures are very volatile and do your own research before start trading.
Nice