Become A Crypto Leverage Trading PRO In 30min! (20X Your Profits)
Summary
TLDRIn this informative video, the presenter, F, introduces viewers to the world of leverage trading in cryptocurrencies. He explains the concept of trading as buying and selling assets, and how leverage trading amplifies exposure by borrowing capital from exchanges. F emphasizes the importance of understanding risk management over the leverage ratio, as high leverage can lead to significant gains or losses. He also discusses the differences between isolated and cross margin trading, the significance of funding rates and open interest in the market, and provides practical advice for beginners. The video aims to educate viewers on responsible leverage trading strategies to maximize profits while minimizing risks.
Takeaways
- 😀 Leverage trading amplifies exposure to an asset, allowing control of a larger position size than the initial capital investment.
- 🚀 There are two types of people in the bull market: those who leverage trade and those who want to leverage trade.
- 💡 Leverage is the borrowing of capital from the exchange to increase buying or selling power without using one's own money.
- ⚠️ Leverage multiplies both gains and losses, meaning a small market movement can lead to significant gains or losses relative to the margin used.
- 💰 The concept of margin is crucial; it's the amount of your own money that you risk on a trade, which is a fraction of the total position size.
- 📉 Liquidation occurs when a trade's losses exceed the margin, resulting in the position being closed, and potentially losing the entire margin.
- 🔄 Understanding funding rates is important as they can affect the cost of holding a leveraged position over time.
- 🌐 Open interest is a measure of the total number of open positions on exchanges, indicating market activity and interest.
- 🛑 The distinction between isolated margin and cross margin is essential; isolated margin limits risk to the margin used, whereas cross margin puts the entire account balance at risk.
- 🛍️ Leveraged trading allows for both long and short positions, enabling traders to profit from market increases or decreases.
- 🎯 Risk management is key in leveraged trading; the focus should be on the percentage of the account at risk, not just the leverage ratio.
Q & A
What is the main topic discussed in the video?
-The main topic discussed in the video is leverage trading, specifically in the context of cryptocurrency markets.
Who is the speaker in the video?
-The speaker in the video is 'f', who introduces himself as one of the new kids on the blog, aiming to help viewers make money in crypto.
What are the two types of people in the bull market according to the speaker?
-According to the speaker, there are two types of people in the bull market: those who leverage trade and those who want to leverage trade.
What is the basic concept of trading as explained in the video?
-The basic concept of trading, as explained in the video, is buying and selling an asset.
What is leverage in trading and how does it work?
-Leverage in trading is using borrowed capital for an investment, expecting the profits to be greater than the interest payable. It allows investors to control a more substantial position size than their initial capital investment.
Why is it important to understand the difference between cross margin and isolated margin when leverage trading?
-It is important to understand the difference because cross margin puts your entire account balance at risk, whereas isolated margin limits the risk to only the amount you've put into a specific trade.
What is the funding rate in the context of leverage trading?
-The funding rate is a fee that is payable every eight hours when you take a long or short position. It can be positive or negative, depending on market conditions, and affects the cost of holding a leverage position.
What does the speaker mean when they say 'leverage doesn't matter, risk matters'?
-The speaker means that the level of leverage (e.g., 10x, 100x) is less important than the percentage of your account you risk on each trade. Even with high leverage, if you only risk a small percentage of your account, you can still trade responsibly.
What is the purpose of the project sponsored in the video, ZKL?
-The purpose of ZKL, as mentioned in the video, is to provide privacy-centric solutions for blockchain communication and cross-interoperability, aiming to protect user privacy in various digital activities.
What advice does the speaker give for beginners looking to leverage trade?
-The speaker advises beginners to use isolated margin to limit risk, always check their risk percentage in relation to their account size, and to learn about trading and chart analysis before engaging in leverage trading.
What is the significance of the liquidation price in leverage trading?
-The liquidation price is significant because it represents the price at which a trade will be automatically closed to prevent further losses. It's crucial for traders to be aware of this to manage their risk effectively.
Outlines
😎 Introduction to Leverage Trading
The speaker introduces the concept of leverage trading in the context of cryptocurrency markets. They emphasize the importance of understanding leverage, which allows traders to control a larger position size than their initial capital investment, and explain that leverage trading involves borrowing capital from the exchange. The speaker, FI, aims to provide guidance on how to trade safely with leverage, highlighting the difference between traditional trading and leverage trading, where the latter multiplies both gains and losses.
💡 Understanding Leverage and Risk
This paragraph delves into the mechanics of leverage, explaining how it amplifies exposure to an asset and the potential for both increased profits and losses. The speaker uses the poker table analogy to illustrate how leverage works, comparing it to borrowing money from a casino to increase one's playing capacity with the condition of risking only one's own money. They also introduce the concepts of funding rates and open interest, which are crucial for understanding the costs and market participation levels in leverage trading.
🚀 Advanced Leverage Strategies
The speaker discusses advanced strategies in leverage trading, focusing on risk management rather than the leverage ratio itself. They explain that being a 'reckless trader' is not about the amount of leverage used but about the proportion of one's total capital that is at risk. The speaker provides examples to illustrate how to calculate risk in leverage trades and emphasizes the importance of plotting trades carefully to manage potential losses.
🌐 Decentralized and Privacy-Focused Trading
The speaker introduces the concept of decentralized trading platforms, mentioning a platform called Evo that allows for leverage trading without KYC (Know Your Customer) requirements. They also discuss the importance of privacy in trading and introduce a project called ZKL, which aims to provide privacy-centric solutions across various digital communication channels. The speaker shares their personal belief in the project and discloses their investment in it.
🛠️ Navigating Crypto Exchanges for Leverage Trading
The speaker provides a tutorial on how to use cryptocurrency exchanges for leverage trading. They explain the process of transferring funds from a funding account to a Futures account and the importance of distinguishing between spot trading and Futures trading. The speaker also emphasizes the need to understand the order book and the difference between market orders and limit orders when placing trades.
⚠️ The Risks of Cross Margin and Importance of Isolated Margin
In this paragraph, the speaker warns against the use of cross margin in leverage trading due to its risks, such as the potential for a total account loss in the event of a market crash. They recommend using isolated margin, which limits the risk to only the amount put into a specific trade. The speaker also explains the concepts of liquidation price and the importance of being aware of it before placing a trade.
📉 Shorting Assets and Understanding Trade Mechanics
The speaker explains the process of shorting assets in leverage trading, which allows traders to profit from a decrease in the price of an asset they do not own. They discuss the mechanics of borrowing an asset from the exchange at a certain price, selling it, and then repurchasing it at a lower price. The speaker also covers the use of stop losses and the difference between cross margin and isolated margin within the context of Futures trading.
🎉 Conclusion and Additional Resources
The speaker concludes the tutorial by summarizing the key points about leverage trading, emphasizing the importance of using isolated margin and checking one's risk when trading. They also promote an upcoming meme coin show on Bento Bubbles and encourage viewers to subscribe for more educational content. The speaker expresses gratitude for the viewers' engagement and interest in the topic.
Mindmap
Keywords
💡Leverage Trading
💡Margin
💡Liquidation
💡Funding Rate
💡Open Interest
💡Isolated Margin
💡Cross Margin
💡Perpetual Contracts
💡Market Orders
💡Risk Management
Highlights
Introduction to leverage trading and its importance in the bull market.
Two types of people in the market: those who leverage trade and those who want to leverage trade.
Basic definition of trading: buying and selling assets.
Explanation of leverage trading: using borrowed capital to increase investment exposure.
Understanding the risks and rewards of leverage trading with a 10x leverage example.
How to calculate gains and losses when using leverage, and the impact of market movements on leveraged positions.
The concept of liquidation in leverage trading and its consequences.
Difference between isolated margin and cross margin in leverage trading.
Importance of risk management when using leverage, regardless of the leverage ratio.
How to use leverage without being a reckless trader by managing risk effectively.
Introduction to decentralized trading platforms like Evo for privacy-focused trading.
Overview of ZKL project focusing on privacy in blockchain communication.
Explanation of how to transfer funds for leverage trading on centralized exchanges.
Difference between spot trading, margin trading, and futures trading in crypto.
Guide on how to place leverage trades using market and limit orders.
The role of funding rates in leverage trading and their impact on trading strategies.
Importance of monitoring open interest levels for market activity insights.
How to exit leverage trades with profit and understanding P&L percentages.
Final advice on using isolated margin for beginners and the dangers of cross margin.
Transcripts
what if I tell you that I can take 100x
levage trade and still not be considered
a reckless Trader well I'm going to give
you that how to do that exactly but also
I'm going to show you everything you
need to know about leverage trading now
my name is f I'm one of the New Kids on
the blog I'm here to help you make money
in every way of crypto other than
trading but leverage trading is
something that we all have to consider
because it is the bull market there are
two types of people the people who
leverage trade and the people who want
to leverage trade so let's jump into it
if you're new to this Channel please
smash that subscribe button also if
you're returning please smash the like
button and let me know in the comment
section what you think about this show
what is trading that's exactly what we
got to start with trading is buying and
selling basically there sorry but that's
basically that's what it is buying or
selling an asset if you're leverage
trading that means that you are buying
and selling an asset 4 us right I see
you guys in the chat as well coming
crazy that's absolutely incredible see
you guys see you guys awesome awesome
awesome let me know let me know how are
you let me know if you're leverage
trading I actually put up a vote as well
I want to know if you are leverage
trading it is the bull 70 74% of you say
you are leverage trading and that is
absolutely incredible uh I want to give
you some guidance today I want to give
you some guidance today so let's jump
into it so again going back to the
example trading trading is when you sell
and buy an asset that's obvious right
leverage trading you also buy and sell
an asset but the difference is that you
use someone else's money so if I go on
and look at what leverage trading is I
see here the V by the way I see here the
W by the
way 70% of your leverage trade that's
great let let's see let's see if you get
this right let's see if you let get get
all the stuff right so Leverage is what
is leverage Leverage is U is to abuse a
bored capital for an investment
expecting the profits to be made greater
than the interest payable now this is
great but what is it in leverage
trading leverage Trading is a strategic
technique employed by investors to
amplify their exposure to an asset
allowing them to control a more
substantial position size than their
initial capital investment now if you
understand this I'll just go home I'll
just go home turn the live off let me
know if you understand it or if you
don't understand it uh for me when I
started out it was completely completely
completely beginner so what this means
is leverage trading is a strategic
technique employed by investors to
amplify their exposure to an asset that
means that you by the use of Leverage
you are able to increase your exposure
or your position size in any uh in any
asset so leverage itself is the
borrowing of capital from The Exchange
how do you do that exactly basically
right now everything works with a click
of a button but when you use leverage
you essentially borrow money from an
exchange So In traditional ways we talk
about leverage as 1 to 5 1 to 10 1 to 20
and that means that you're borrowing uh
uh money so for example if I have a $100
and I want a 10x leverage a $1,000 worth
of position I can borrow $900 from The
Exchange and put that uh in use without
using my money if I bring a casino
example this is how it would look there
is a big poker table you come to the
poker table and you say I have $1,000
but I would like to pay I would like to
play with $10,000 the casino can tell
you obviously it's not happening in in
the real world but the casino can tell
you okay we can give you $9,000 as a
loan no problem but you cannot lose any
of our own money so you can only risk
your own money the your
you take that $99,000 and basically you
use a 10x leverage at the poker table
until you make money that's absolutely
fine the casino takes their cut and
everything is happy but when you start
losing money the casino tells you you
can only lose $11,000 if you lose more
than $1,000 they will cut you out you
you lost all your money and you will
have to give back the 9,000 so that's
exactly how leverage really works so
when you say you you working with 10x
what essentially that means is that you
are borrowing money and you are using
10x the money that you uh that you have
let me give you an example here so for
example I go and I take a a 10x leverage
position on bitcoin right so I have
$1,000 if I have
$1,000 and I take a 10x leverage
position that means that now I have
$10,000 worth of buying power right so
that's what I basically have but here is
the kicker when I use 10x Leverage
everything multiplies so also my gains
multiply and my losses multiply so if
price moves by
1% I lose 10% and I don't lose that 10%
on my on my um uh the position size but
I use it on my margin so in this case if
price would move 1% to opposite
direction of me I would lose $100 on my
1,000 that is that is the risk and the
advantage of Leverage as well I'm going
to talk about it in a second just want
you to understand the basic concept so
if I have $1,000 I come to The Exchange
and I want to use a 10 x somebody is
saying in the chat is risky people are
saying it's risky it's risky I'm gonna
give you I'm gonna give you why it's not
risky I'm GNA give you why it's not
risky so I mean it is of course risky
everything is risky in life but I'm
going to give you why you can use this
to your advantage so if you have $1,000
and you do a 10x leverage you have
$10,000 to P purchasing power you can
purchase $10,000 worth of uh uh assets
but if you for example do 10 uh 10x
leverage you can also do from this th000
you can also do
100 and you still have 900 on your
account right that means that you you
can cover the loss if that happens for
example if you have 1% move in the price
and the price moves 10% against you that
means you lost $100 going back to the
poker table example if you go down to
the limit of your own cash which is
called the margin you lose everything if
price goes down 10% in this this example
if you're at 10x you lost everything
because 10 * 10 is 100 and you lost all
your margin and you get liquid this is
what we call liquidation what you have
to understand from the whole thing is
using leverage basically means that you
are multiplying your cash your gains and
your losses now let's talk about gains
and losses because this is what a lot of
people get wrong again I will bring you
the example of $1,000 if I have a $1,000
margin and I take a 10x position I
bought 10,000
worth of assets right my position size
is $10,000 all good if price moves up
I'm not going to talk about it that much
because if price moves up you make money
absolutely fine 1% you make 10% that
means you make $100 but what if price
starts moving down if price starts
moving down you will lose sub
multipliers of the percentages of of the
move so for example if price moves down
1% you lose 10% if price moves down 5%
you lost 50% of your margin that you put
into the trade at 5% in crypto is
nothing you guys know it all of us know
it 5% happens basically you know from an
hour to an hour when goes down 10% you
lost 100% here is going to be the
differentiator because there is isolated
margin and cross margin if you use
isolated margin you did not lo you lost
everything and if you lose cross margin
you haven't I'm going to talk about that
in a second as well this is when
actually liquidation happens I'm going
to explain to you when we get to the
exchanges there are two major things you
have to understand and people ask a lot
number one funding rate so when you take
a position when you take a long position
or short position you have something
called the funding rate and and the
funding fee eventually this means let me
show you on on an exchange this means
that when you take a position it will
show up as for example now on bitcoin
the funding rate is
0.016% this means that if the funding
rate is positive Longs pay
short if the funding rate is negative
shorts pays Longs so whenever you take a
position it sounds very nice that you
take a long position and you hold it
forever and ever but if you look at a
funding heat map for example funding
rate heat M you you can see that holding
a leverage position for a long time can
be very very very very expensive so Ren
for example liquid you saw him on the
show he liquidated um he liquidated his
position because he closed his position
he didn't get liquidated he he closed
his position because he paid too much in
funding it was worth for him to put in
spot that's the exact same thing here so
if you look at the funding rate you can
see that sometimes funding rates can go
very very high funding rates are payable
every eight hours by the way funding
rates can go very very high so high so
that at some point for example in March
5th you saw that it's a yearly so you
didn't pay 200% on your on your on your
position every eight hours but this heat
map takes it for a yearly if things
wouldn't have changed on the 5th of
March people who held uh link for
example and were short long link they
would have paid 188% of their position
as fees because this helps the market to
equalize if funding rates are high then
there is an incentive for the other side
to participate for example if the
funding rate is is positive and it's
188% in a year then there will be more
shorts because then they get paid that
fee if the funding rate is negative then
there will be more Longs because then
they can recoup the frees from there so
this is just about funding fees the
other thing that we always talk about is
open interest you probably here R
talking a lot about
this let me guys smash that like button
I see we have almost 800 people live and
we have 134 likes smash that like button
if you like this content and if you're
new you know what to do subscribe
so open interest this is basically so
open interest shows you you can find
different different websites where you
can see open interest there are trading
view indicators and whatever that is but
basically what open interest is is the
in is the opened positions the number of
opened positions on different exchanges
on different assets so when you come
here you see 11
111,000 BTC but that's not
111,000 pieces of BTC or not
$111,000 worth of BTC it is1 11,000
orders that are opened on binance on the
BTC pair if I go on to ethereum for
example you will see 6
161,000 uh oh sorry on on on uh on yeah
661 th000 on bybit but it's 1 million on
binance that means 1 million positions
are open why is this interesting it is
interesting because a lot of times they
talk about open open uh uh open interest
went down that means that people lost
interest in the market they are not
participating in the market there is no
uh there is no real player so so if if
if if the open interest is very high and
you see it going by hour by 4 Hour by 24
hour you know that there are active
participants in the market and that
means that they just come you know they
come they place it or whether it's short
or long we could see that from
Liquidation heatness but we're not going
to talk about it but when open interest
is reset that means that we wiped out
everybody basically right so we wiped
out the participants now we can start
building again um and that's also what
funding rates shows us so when we green
we are more neutral that means that
there's not really either side of the
market it's not really uh you know Longs
not really shorts It's like a neutral
site so uh yes let's talk about why does
leverage not matter so as I said at the
beginning I could take a
100x leverage position and still not be
considered Reckless Trader and this is
something guys I really want you to pay
attention because whatever I'm giving
you here is real
Alpha if you what is most important in
trading risk right so we have to
evaluate our risk this is why I always
say leverage doesn't matter what matters
is risk risk is what matters if I take a
100x leverage position what does that
really tell me it means that I have a
let's say I have 1,000
right as my
margin margin meaning my own amount
that's like my money and I go into an
exchange and I take a 100x leverage
position that means the exchange will
borrow me 100 times the money I have
right so I'm going to go in with 100,000
USD position here is where the problem
becomes an issue right if your your
let's take it with smaller numbers
because it's going to be much easier to
understand let's take a 10x let's take
take
$100 so that means we have
$1,000 position here's where the where
the interesting part comes in if I have
on the chart I put my risk reward tool
up here and I say that my risk is 1% on
the chart on the chart if I take a 10x
leverage position my risk is not 1% my
risk is 1% times 10 because I'm using
10x Leverage if I take a 100% or 100x
leverage then my risk is 1 time 100 so
whenever you start plotting your trade
you start putting your you know you you
look at the chart you start plotting
your trade you start putting your risk
reward tool up and you're thinking what
trade should I take or you you get you
get an information from someone and
saying oh this is my TP this is my stop
loss this is my position you always have
to consider using leverage what I saw
people and this is what I've done in the
beginning right what I've done in the
beginning I got a call okay go and buy
Bitcoin long 65,000 270 Stop Plus below
65,000 and I did 20x all my account and
then that's it but what I didn't realize
if I do 20x on my whole account is that
I basically can use 20% of my total
account on one single mistake right one
single mistake so what matters is not
the re because the matters is not the
leverage but the risk so let's imagine
that I have $1,000 worth of account
that's my account size that's all the
money I have in the account and I have a
1% risk on the chart if I go in with my
whole account and I put it at at let's
say a 10x that means I will lose 10% of
my account of my total account if price
moves down to 1% if I do a 100x I will
lose my total account if it goes down by
1% but what if I would go in let's say
I'm just going to plot it down here for
you what if I have $1,000 account right
I take a 100x position but I don't take
it with my whole account I don't take it
with my whole account I only take it
with 10% of my my account I take it with
a
$100 that means that if price moves 1%
down 1% move I'm going to lose 100% of
the amount that I put in in the trade so
yes I'm going to lose 100% of my account
uh but I'm only going to lose it on the
trade that I added or the margin that I
added to that trade this is when you can
see like people posting 2,000 5,000
7,000 per uh cards and wins on Twitter
the reason the way they do it is that
you I can take a $1 position on
a,x and even if I lose you know even if
price goes down 10% I'm going to lose
$20 $30 not an issue so what you have to
consider is always not the leverage that
you're taking but the leverage you're
taking compared to the risk that you're
that you're taking now guys let me look
at the chat as well have I have been
just talking and talking and talking I
love to do these lives I had some
technical difficulties in the beginning
but completely back here someone is
saying forbidden in the EU leverage
trading forbidden in the EU now here is
the thing I'm very glad you said that
because now we're going to move on a
little bit to to exchanges right and how
to use them I'm going to show you
exactly how to do this because I know
people get themselves wrecked completely
so if you think it's it's it's illegal
in your country or whatever I'm again
not Financial advice nothing I say or
you just want to regain control without
centralized exchanges I brought you Evo
not a sponsor but I think Evo is a
decentral Evo is a decentralized uh
Perpetual trading platform right so that
means that you can trade on Leverage and
you can trade options using your
metamask absolutely incredible the idea
itself is absolutely incredible as well
there is a link in the description check
it out what you can do is that you hook
up your metamask account and you are
able to do leverage trades decentralized
manner you don't have to kyc there are
no no country limitations you you know
it's it's it's it's a complete
decentralized ecosystem of trading
options and leverage trading works the
exact same way you hook up your metamask
and then you can take a trade I'm
actually just going to take a trade here
so you see how it works so for example I
take A1 we're going to talk about this
in a second for everybody who is using
centralized exchanges I'm going to
explain to you everything on on another
exchange how these things work more
course margin isolated margin everything
in a second but you can take a a
position here you can just add how big
your position you want this is the
position size again with talked about
never so I'm at 20x here it shows here
position size and then I just go place
in order the cool stuff about this is
that it literally places it from my
metam mask like it everything I do goes
directly to my metam mask it's
absolutely incredible anyway check this
out it's also important when you want to
preserve your privacy right so privacy
for me is is absolutely key and um this
is why I want to bring in today's
sponsor uh zkl the reason why I'm
bringing them in I have been invested in
this project since February and uh they
came to us and they said they wanted to
sponsor a show and I was absolutely
absolutely happy because I am very very
bullish personally on the project this
is also disclosure that I am holding
this token instead of giving you why I
think they are cool and whatever that is
I want to give you why I personally
invested and why I personally have huge
I would say I would say extremely
bullish but I wanted to say belief uh in
them and the reason is everything is
crypto right so if if they can pull this
off this can be absolutely mind-blowing
so what they say on the website
unlocking privacy secure blockchain
communication and and cross interop
parability it's a very difficult word
but basically means that you can do it
through all the blockchains what they do
they take a holistic approach to privacy
and that means that if you do anything
if you search online something I don't
know if you had this experience you
search online on Google for example and
you get literally a second later you
watch your YouTube video and you get the
same then you get the same uh
advertisement that you were searching on
on Google and because Google basically
owns everything all Google and apple you
your privacy is completely gone
absolutely gone whatever you search
whatever you watch is already connected
in the back you have a profile created
on your persona and they give you and
feed you everything you want to know so
what they planning on doing or what they
are aiming to do through a complete
ecosystem is to preserve your privacy
first off they have ZK search what they
again talking about going back to the
example with Google they have a
decentralized search engine powered by
Ai and that means that they don't store
your data so you can still get
everything else uh that you would get
from Google all the information
available worldwide you can still use
them but there is no profile being built
on you and they can't leverage it
against you or you know like uh
advertise you stuff for example that you
don't need then they have the operating
systems if you use apple I don't even
have to mention this I mean if you use
apple obvious any operating system you
use collects data I literally oh by the
way guys just so you know if you use an
iPhone and you have this journaling
feature on I I literally just saw it
yesterday if you have this journaling
feature on it allows the journaling
feature to share the journaling
experience with other iPhone users in
your area so this is this is the kind of
stuff that that that zcml is is fighting
against right so also for um for
computer or for uh mobile then they have
a privacy Centric viip which is voice
over Internet Protocol meaning when you
have a phone call again this is
something this is why I'm actually
extremely bullish in the project because
if you if you think about this how many
times it was confirmed that we were
being ABS dropped by the government
right everybody's listening to what we
talking about they their approach will
or if again if they pull it off they
will be they will be able to create an
interface where you can communicate
without being tracked completely then
they have the shield then they have
cross chain inter interoperability which
means that it's not just going to be if
you use Monero your your your your
privacy secure it's going to be like you
can use any blockchain and they pack it
they have a special D app that you can
already test out basically what they do
is that you can you can uh go and oh I
have to refresh the side sorry about
that uh basically what they do is that
you can you can they can they pack your
they give you a public ID and they pack
your transaction in in a a um a a
package and nobody can track your
transaction even though if you're in if
you are interacting on on on ethereum
for example you can go in connect your
wallet try it out you get your your your
ID here and um and then you get your cre
obviously I'm not going to show the key
and then they pack that transaction if
you want to know more about them read
the white paper uh I read it they have
all everything explained everything how
they unpack this what the what what the
features are again this is just my
personal opinion I'm not not Financial
advice I am invested since February I
love the project even though before they
became sponsors you can check them out
on Dex tools they did not have a
centralized exchange listing yet as well
I would be very very surprised if they
don't have it um and and um basically I
just keep TR track on on that Twitter
after usted let's talk about let's talk
about uh exchanges because it's very
very important to understand how to
actually do the trades how to actually
take leverage trades oh Bitcoin is
Bitcoin is pushing guys who's who is
long who is short who's long who is
short
okay people people are mostly long
people are mostly long okay that's
that's a very good sign that's a very
good sign all right so I'm going to use
blin as an example the reason why again
I just bring something that I like to do
and I use blin because blin is freaking
amazing no kyc no uh no no kyc
noncustodial they don't keep your funds
and all that you can check it out
there's a link in the description this
is what I use uh but it works on the
same way on any centralized exchanges
that you might
use so here's how you do it number one
you want to transfer funds right so you
have different accounts and exchanges if
you have not done uh uh leverage trading
it can be intimidating I know it's
difficult but I'm going to give you the
tools now and don't get scared okay so
there is if you go to the assets you
have different accounts you have funding
you have spot where you hold your
Bitcoin and whatnot and then you have
Futures so Futures accounts is what you
really do now it's important to mention
here what is Futures and what is uh what
is margin and what is Leverage and
whatnot because it can get quite
confusing so in crypto world when you
say Futures Trading or perpetuate
trading or even if you go on to trading
view you see when you search for an
asset you see the P at the end this is
the charts that you want to look at if
you trade perpetuals um perpetuals I
don't want to get into the deep di but
basically what it means is that it's a
derivative it derives the price from the
underlying asset so what you want to
know here is that in cryptoland
everything is basically compliant future
contracts are and agreements that I'm G
to buy or sell you an asset in down the
future on a specific date and a specific
time now Perpetual Futures allow you to
do that without time limitations and
that means that we agree The Exchange
basically agrees with you that they are
going to buy or sell the asset that you
are that you are taking a position in
without time restraints that means that
I can get in a position and sell it or
close it a year from now if I can bear
the funding fees right so uh here here
is the here is the someone is saying I'm
long Kos in the house yo yo yo yo
everybody's long everybody's long
everybody's that's not a that's not oh
somebody is short somebody's short
Daniel is short okay good good good all
right so let's let's go into this so
first what you want to do is you want to
transfer funds so when you have when you
have your your your uh you send the
whatever usdt to your account you can
click on this little arrow and you can
go from funding to Futures right you
write in the amount and then the amount
will show up here so once you've done
that you can start taking trades not
Financial advice obviously first off you
can find the the the you know the the
the pairs that you want if you chart
your chart don't go if I write in us if
I write in Bitcoin for example on
trading view you will see that you have
BTC USD you have simple BTC Market Cap
you have all that what you want to look
is always the Perpetual the P at the end
it's very very important even says
Bitcoin uh te tether tether dther yeah
usdt Perpetual contract right uh so you
you always have to look for the
Perpetual contract contracts whatever
exchange you use so once you've done
that you can go on to the exchange and
search for the actual fair so when you
are up at Futures when you pick the
Futures not spot not marginal anything
else you can search for the asset that
you want to trade let's say you want to
trade Bitcoin if you want to trade
Bitcoin you will land on this platform
the platform is basically the same when
you purchase spot if you have ever
purchased spot you know what I'm talking
about if not you have the chart here you
have the order book here as a beginner
it's very very important to understand
the order book is very diff important
you have all the orders lined up but I
don't want to Deep dive into it because
it's a completely different topic uh but
you buy you see all the sell orders here
in increasing order and you see all the
buy orders here in decreasing order um
and then what you can do is Select cross
margin and isolated margin and now I'm
going to look into your eyes and tell
you to please leave stop everything you
do and listen to me because this is
where people really
get screw I wanted to say the f word but
screwed when you use cross margin again
again you can set it up here look when
you use cross margin it even says here
I'm not going to read this but it says
here what it is cross margin means that
you are using your
entire account Futures account is at
risk so if I have let's say I have now
here $7,000 right if I put a train I
explain to you the the the example with
the how much can you lose and what what
account I'm going in and if I have a 1%
risk on the chart and that go 10x that
means I can lose 10% of my account well
if you use cross
margin the amount that is on your
account can be used as collateral as
well let's take an example I have $7,000
here I go into a trade with $1,000 at at
10x leverage right that means if the
price goes down I use I lose 10% fine
but what if price goes down 10% right 10
* 10 I use 100% I lose 100% of the ,000
that I put in now if I am on Cross
margin I can go in minus so I can
literally have uh minus 4 100% position
because it takes the amount I have on
the exchange as collateral and it uses
it as collateral meaning I can have a
minus 400% position even though I
thought I'm only risking the money that
I put into a
trade however if I use isolated margin
which is here that means that it
isolates that position if you put in
$1,000
there is no way for you to lose more
than $1,000 if you are starting out if
you are starting out please make sure to
use isolated margin never use cross
margin never because if there is a flash
crash you will lose your whole account
it's only use isolated margin please
please please please okay so that's the
difference let's see how it goes you
have limit orders and Market orders
Market orders are more expensive but
still I recommend you if you're a buire
to use Market orders Market orders means
you don't have to worry about the order
book you just simply put in I want to
buy Bitcoin now I want to buy $200 worth
of bitcoin and it will fill you the best
price on the best price on the limit
order you will need to add the price as
well so you'll need to add what price
you want to purchase on but if the order
book is moving too fast your order will
not get filled so that's why I think if
you're a beginner stick with market then
you can write in let's say I want to buy
$100 worth of position let's say let's
say a th000 and I'm going fix it 50 yeah
sorry guys because I'm you know I did uh
I did a trading show the other day on by
the way guys yeah you should follow my
trading Channel it l in the description
I have a trading Channel where I teach
all that what you heard and much more I
have live trading shows I give away
profits and whatnot if if we reach 2,000
subscribers this uh week this Sunday
basically today I'm going to do a major
giveaway on my show on Monday so
subscribe to the channel down in the
description uh but anyway what I what I
wanted to say here is that if you if you
go in with let's say a 10x you pick the
leverage that you want and you add the
amount let's say $1,000 it will show you
several things here down if you see it
says cost the cost is the amount of
money it will take from your account and
use it for the trade so in this instance
when you say $1,000 you don't put in the
the $1,000 does not mean that you use
your own ,000 it means that that is
going to be the position size which
means if you're going 10x then the
position size is a thousand therefore
10% of that is the money that is going
to be used from your own budget that is
the cost here so if I put in $11,000 on
10x I will have to use $100 from my own
account then there is something called
the liquidation price this is what I
told you what it means is that if you
use if you use a a a a isolated margin
for example or if you don't have enough
money on your account it will have so
for example if I would put
in let's say I don't know I don't know
how much we should put in for it to show
the liquidation
price yeah for some reason it doesn't
show it to me because I'm not an is I'm
cross but anyway so it will show you a
liquidation price down here right let's
let's go let's let's go let's see if it
shows it like
this yeah here you see so if I would go
in now I would put 72% of my capital and
I would go long my liquidation price
would be 302 uh
3,228 so that means that if I would go
in now 50x 72% of my account if ethereum
dropped down 3 and a half% I would lose
my entire account everything I have in
there so always pay attention before you
place a trade to know what your
liquidation Price is
Right uh and then you and then you can
basically just uh take the trade now
there is there are questions that I
usually get going long and going short
the good part about leverage trading as
well other than the fact that you can
borrow the exchange's money is that you
can go short and you can take a long
position even on assets that you don't
own it's most because if you buy Bitcoin
on spot you go long on the position
because you swapped your usdt into into
Bitcoin and then you know Bitcoin
appreciates in price you're basically
long Bitcoin but what if you don't have
the asset you don't have Bitcoin but you
want to short Bitcoin or sell Bitcoin to
take advantage of the drop you have to
get your mind around this concept but
basically what what means what this
means is that the exchange lends you
Bitcoin at a certain price you can sell
that Bitcoin on the market and buy it
back lower again the problem comes if
you short an asset that you borrowed you
will need to give that asset back on
that given price so if the price goes
against you if you short for example and
the Bitcoin appreciates in price you
will have to use your own money to pay
the exchange back and that's when
liquidations really happen and that's
why you incur losses but when you short
it basically means that you're betting
on the price going lower and you can do
that on on on Leverage trading without
having the asset you just have to have
dollars you put in the amount that you
want to buy for or the position size
that you want and then you can just
click on go
short limit orders and market makers I
talked about stop losses I don't really
think we should talk about them but you
can use stop losses as well I there is
one more thing I want to talk about
before I round this up and then let me
know in the chat let me know in the chat
if you have any questions I will look at
that I see a lot of people asking
questions we are going to look at that
on down here when you add the position
you will see that you have the total
number of dollars this is the the the
position size then you have average
price buying price that you bought it at
then you have the margin this is the
margin that you use your own money in
the position then you have the mark but
use the current price then you have the
p&l and you have the p&l perc this is
what I showed you you see I'm up 67% and
you could say oh my God it's 67% that's
if if you do $10,000 then you're up 67
600 $6,700 but that's not really true
because I only used $200 so I'm up 68%
on this position again this was a djm
play on my trading show the other day so
I'm up
68% and uh and I'm up
$37 only right so so it doesn't mean the
fact that it's it's a high uh percent it
doesn't mean that it's it's um it's a a
lot of money I could have used it with
$1 as well let me look at the chat guys
smash that like
button all right so let me look at it
somebody is saying I'm confused let me
know what you confused with I'm very
happy to
have someone saying learn the charge
before you leverage trade yes yes yes
yes yes very very very very very
important please do use uh trading view
learn the charts and and whatever that
is someone is saying cross is fine with
stop yeah the problem is if you use
cross leverage and the market decides to
dump and nuke you have a problem because
you can't sell that fast you can't have
a so for example let me look at an
example
here I'm sure we will be able to find an
example on
bitcoin it's mostly on on on smaller
smaller cap coins as well but look at
this like you can have a stop loss here
you can have a stop loss here let's
let's say this was your long and you're
a cross margin and you have a stop loss
here and you say oh it's 1% I'm 10x
absolutely fine but what can happen is
that the market nukes and it has a 10%
dump and even though you had a stop loss
the the the market maker or the exchange
cannot fill your buy or sell and you get
liquidated so don't use cross margin if
you are not 100% sure what you're
doing so saying or wipe a few times and
definitely wake up fast yeah
exactly is isolated margin better than
Futures two the same thing so you within
Futures and revolu trading you can use
cross margin and isolated margin as that
showed on the platform look
here when you do leverage trading which
is Futures Trading I go back check the
check the the the show again leverage
trading and Futures Trading Andis
trading is the same thing combined in
crypto so when you do leverage trading
or Futures Trading you can use cross
margin and isolated
margin isolated you only you are risking
only the money that you put into the
trade cross margin you're risking your
whole
account how do I get out of the trade
with the profit you just sell just get
out of the trade you can just close an
amount here there's a closed position
and you can close
that so saying good learning I'm happy
you like it happy you like it entry ski
you need to understand the chart exactly
exactly exactly exactly exactly doesn't
Mark Price protect against crashes yeah
could be could be I've been here long
enough to see that it it doesn't really
work that way uh so sure it could but
it's not worth risking in my honest
opinion guys I believe that was it for
today I hope you understand leverage a
little bit better I hope it makes sense
I hope that you are going to pay
attention to how you use leverage from
now on again there are two Ty of people
in bull market right the ones who
leverage trade and the ones who want to
leverage trade so make sure that if you
leverage trade always use isolated
margin always always always check your
risk if your risk is 1 % on the chart
but you use 50x leverage you're risking
50% off your account um and other than
that I believe so saying great show
thank you so much thank you so much for
being here uh other than the technical
difficulties we are sorted so I hope you
like this guys one more very important
thing I almost forgot one more very
important thing there is this is what
I'm going to do from now like like going
from here within half an hour we got 23
minutes the biggest meme show off the
planet is going to be here on bentto
bubbles if you are not subscribed to
bentto Bubbles guys you are I don't know
what you're do Benta bubbles bent
Bubbles as well but bent plus if you're
not subscribed to Bent plus go to Bent
plus and and and and uh and And
subscribe this is the channel we bring
you different kind of alpha that we
bring on this channel and they having
with Gustavo and ran there will be a
meme coin show I'm going to watch this
now so that's what I'm going to do
that's why I'm telling you I think
that's what you should do as well it's
going to be fun thank you so much for
being here thank you so much for
watching thank very educational good
stuff thanks for effort thank you thank
you well explained I'm so happy so happy
so happy guys thank you so much for
watching and I will see you in the next
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