Hello, I know nothing about finances but I see people talking about "10x leverage" and "100x leverage" and something drops a few % and they lose everything.
Can you please explain to me how this works?
I'd appreciate it so much.
(PS I looked online and didn't understand properly what they meant).
I *greatly* thank you in advance.
I will if you tell me how old are you
Leverage is like using some one elses money to make your position larger than what your risking. Say you throw $100 at something with 10 times leverage it's like You're actually throwing $1000 at it. If the fucker drops 10% you get margin called and lose your 100$, if it goes up 10% because you've leveraged it 10 times you will double your $100.
Same as buying or selling normally, except if your "liquidation" price is hit, you lose everything. Higher leverage = closer liquidation price to your buy in
pee pee poo poo
100 times leverage would mean a change in 1% would either wipe you out or double your $100.
i think this explains it perfectly.
as a token of appreciation i offer you this picture
thank you again, good sir
youve managed to explain to me in 20 words or so more than 500 words of several different pages
keep it simple brahs
I understand now perfectly. May the universe be kind upon you. Thank you user.
I'm in the same boat as OP, tried researching it last night but I don't get it. Is the person lending you the money hoping that you will lose your $100 (which would mean his very own coins are reduced in price)? What's the incentive for the lender? Let's say I throw $100 at a coin with a 100X and it goes in the green 5% within 24 hours. Did I just make $500? Is there a % threshold that has to be met?
And how would you do this with crypto without risk of being scammed?
30
Basically its this thing where you load your money onto an exchange lets say 1 BTC, then you see this button, you press it a little here and there and now you see you have 100 BTC! and then you see your margin percent do one of these ^^^ and one of those vvv and some of this ----> then one more of these and then WEEEWOOO WEEEWOOOW and then poor Arthur has your money
there's usually a fee on the loan so they don't give a fuck what happens and are going to make interest on the loan.
op here i would be mad that you answer for me how damned old i am (you are not op) but im 30 too so were good
then, if youre an experience trader, you say AHHHHH NO NO NO ARTHUR NO! before you see OH that didnt liquidate my entire account, I have 0.01 BTC left.
then you calculate and say FUCK god damn it I lost everything might as well through this bit back in.
and then say GEE 0.01 now I have 1 BTC! and then WEEEEEWOOOOOW and then Arthur comes back to snatch the crumbs he left.
Most of my experience comes from the stock market, the only crypto exchange I've used was poloniex and they had a market for lending coins, I just threw a bunch of BTC in there and put it on auto lending, haven't checked it since like april of 2017.
Then you say fuck it to bitcoins and leave and then if you really know what youre doing, BTC rockets in golden bullrun and everyone you know comes back and say BOY GEE look at that, you must be RICH RICH RICH boyo. And then you say... well actually... I may have bought in 2010, but I use this trade strategy where I do a little this ^^^ and then vvvv and then woOoOoO opp and so not really, but see if I charted it right Arthor will give me my money back in 2025 with the final ooooowaH
i thought the 10x works in both directions, you could also lose more than you actually invested. isn't that the reason many stock speculators go broke?
and then youre dull relatives say well geez should I buy now? and youre bitter so you say fuck that unless you have a great margin strat like me I doubt it. But they dont listen so they put a few hundred in shit coin xyz becasue "the chart is pretty" and so you chuckle and go home like "heh good luck, kiddo, shoulda arth margined. Newbies never learn"
then you meet again a month later and shit coin xyz rocketed so they throw a im rich on crypto dinners on me party for the entire family, and you coincidentally sit directly next to them at the table so then everyone asks "OH GEE BOYO howd you know to buy XYZ???" and they say oh well this lad introduced me to crypers, he's been in since 2010! and then everyone makes the same joke "TEEHEE shouldnt you be paying then!" and you laugh but inside cry.
What about holding your position. Does it cost anything. Can you just wait out until you hit gains?
yeah that's the what the margin call is, the lender wants his money back, so you have to sell shit to come up with the money.
Nah if it drops below a certain point your forced to close the position and just lose everything, you can avoid this buy adding more money to the account before it hits that point, but if you're in a hole like that you're probably better off if you stop digging.
Then at the end of dinner you realize you left about 0.01 btc on a dice gamble site so you figure this was fate giving you a chance to regain everyones respect, so you role 100x and it hits! and you know you should stop but at this point your dull relative has 100ks and you need to catch up so you roll again, but SMART, you change odds to 90% success and try to slow gain. Lose first shot. Back to 0.
and thats basically leverage in a nut shell. But don't even get me started on futures.
>tfw i made $800k by leverage longs during the last bullrun and there's people on this board that still don't know what leverage trading is
Oh, what are futures?
okay, so futures are sort of... like... kinda think of this thing but you dont have the know-how, experience, money, exposure, or any pre-requisite to actually use... but you are kind of like just google "bitcoins" and then this article from cryptoGuido69 comes up and says BITCOIN FUTURES ARE HERE and so then basically you chart that and see its clearly very very very bullish because culinary institutes money will rush in or something to that nature and then you go to your savings and say, well GEE bitcoin is overblown as as as bonkers right now so lets go all in on great news and so you put all your money in and then the guys who have the know-how, experience, money, exposure, or any pre-requisite to actually use short the shit out of the market and all the hodl gains you had for years come tumbling down, but this is awesome because now youre desperate enough to use margin, so you take your one btc left and move it to bitMEX
and then Basically its this thing where you load your money onto an exchange lets say 1 BTC, then you see this button, you press it a little here and there and now you see you have 100 BTC! and then you see your margin percent do one of these ^^^ and one of those vvv and some of this ----> then one more of these and then WEEEWOOO WEEEWOOOW and then poof Arthur has your money
bro this thread just reminded me that I have had some BTC sitting on a dice gambling site that was just being loaned to people so they could leverage it for the past 2 years.
youre welcome
nah the best is when arthur is in control of the supply of these internet shekels, so he makes a new internet shekel that can only be purchased with the internet shekels he's already controlling the supply of, so he drives up the price of his internet shekels and sells them to you at a high, so you can give them back to him and he can give you his new internet shekel that he's got an even tighter control over the supply, then he just fucking unloads everything and flys off on his jet pack to go eat tomahawk steaks and bang super models.
but dont even get me started on algo trading
oh no way, thats super close to algo trading.
which is basically this thing that bitconnect created where you put money in and in makes more money guarenteed and all you need to do is yell BIIIIIIIITCCCCCCOOOOOONNNNNNEEEEECT and then your out of date BTC is converted to new, fresh BCC and then maybe like if youre deep into quant make a instagram live from a motel pool with 6/10 women who arent actually with you but more just in the background and share it with your whole family so they can also get money for yelling too and so they get in on it too and then bitconnect. and they refuse and so you yell at the dinner table about how youre building an enterprise and they are sheeple and then JUST AS YOU EXPECTED bcc plummets around 90% immediately as you begin to settle down and so your famiy is saying oh geez well maybe you will make it because you started to convince them but then you hold back tears and hide your phone as you look at your blockfolio so you can maintain the idea that you won the argument.
algo trading? is that like reverse arbitrage, where you see btc is selling for $110 cheaper on gahndi exchange than on pajeet.com so without thinking you immediately max all your credit cards to buy as much btc from pajeet.com and then sell as fast as possible on gahndi exchange because this opportunity can't possibly last forever. Then realizing what you just did you walk down to the corner store and get a 40 of the cheapest malt liquor your dumb nigger self can get your hands on.
Bagholder, I dont think OP is ready for advanced high frequency trade techniques like that just yet. Lets let him firmly grasp Arthur leverage strategies before we confuse him.
OP please show some gratitude
Hahaha this
im guessing youre the guy who made a joke of everything? nah i said my thanks to the guy who actually explained it proper
you can see who I am from the ID and none it was a joke:
but I can tell youre new here
this is biz. I don't know why I'm still around and still open threads like this one.
Rdr2 is a great game I cant stop watching YouTube vids
what does it mean when a woman shows you her hairless armpit repeatedly?
developing an armpit fetish I think. I really like it when she stretches. I love the summer
You couldn’t be more of a faggot. Great job user.
can we focus on teaching OP trade basics
You have 10 bucks
I now borrow you 40 bucks
Now you can invest with 50 bucks i stead of 10 bucks
You make 10% trade
10% of 50 is 5
You now have 55 bucks
You give me back my 40 bucks
Now you have 15 bucks
From 10% trade....
dont use it , it will fuck you up, just stick with the market
Thanks everyone who helped explain this, I really appreciate it a lot!