Is bitmex leverage a meme? Lets say you go long 1x leverage using 1.0 BTC, then the price goes up 10% now you have 1...

Is bitmex leverage a meme? Lets say you go long 1x leverage using 1.0 BTC, then the price goes up 10% now you have 1.1 BTC. Now lets say you go long 1.0 BTC using 10x leverage, it goes up 10% but because you only had 0.1 in the position and 0.9 on margin you only gain 0.1 BTC(100%) and have now have 1.1 BTC like before but you are much more likely to be liquidated? Why use leverage?

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100x leverage means 1 percent up will double your money (minus fees) and 1 percent down will liquidate your position. It's fun to gamble sometimes with a percent or 2 of your stack. Just consider it lost if it goes to Bitmex

Wouldn't the "doubling" only occur on the money you have in the position?

For example

Go long 100x leverage using 1.0 BTC

0.01 BTC in your position and 0.99 on margin

Price goes up 1% now you have 0.02 BTC because your position doubles

But if you were using 1x leverage you would also have 1.01 BTC if it went up 1%, so why use leverage? Or is there something I'm missing here

This is how you win at leverage.
1 BTC equity, 10x, position is 10 BTC. Liquidation is nearly impossible

Leverage is the greatest tool in crypto if you know what you are doing.

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Bruh think of it this way. 1btc on 5x leverage means any % gain or loss is magnified 5 times.
Price up 7%? You are in 35% profit. You now have 1.35btc.
Price down by 20%? You are now down 100% congrats you just got liquidated

>83 btc from 0.88 btc
what the fuck

>Now lets say you go long 1.0 BTC using 10x leverage, it goes up 10% but because you only had 0.1 in the position and 0.9 on margin you only gain 0.1 BTC(100%) and have now have 1.1 BTC like before but you are much more likely to be liquidated? Why use leverage?

If you have 1 BTC, and you use 10x Leverage, you're now able to take a Position Size of 10 BTC. Your 1 BTC is the Position Margin.

Leverage doesn't divide up what you have (unless Bitmex does something I'm unaware of when it comes to how they implement Leverage)

I longed at 3480

Jow Forums just keeps sinking to new lows

In one instance you are risking 1 XBT in the other you are risking 0.1 XBT. Leverage lowers your capital requirement. For instance you have 1 XBT invested in a casino. You think XBT/USD price will crash. You want to hedge 100% of your holdings. You will only risk 0.1 XBT.

Without leverage:
>You must divest all of your XBTs from the casino negating any future gains while maintaing the hedge.
>Short 1 XBT worth of contracts
>Stop is when loss is at -0.1 XBT

With leverage:
>Divest only 0.1 XBT, 0.9 XBT are still invested in the casino
>Short 1 XBT worth of contracts
>Liquidation is when loss is at -0.1 XBT

Leverage only changed the capital requirement.

Also BitMEX swaps are inverse contracts. FIAT returns are linear but XBT returns are convex. Longing XBT/USD is shorting gamma.

example for you retards:
>long 0.1 XBT @ $10,000
>long return on 50% gain ($15,000)
((1/10000)-(1/15000))*1000 = 0.03333333 XBT a convex return
>which is equal to
0.03333333 * $15000 = $500 a linear FIAT return

For short
>short 0.1 XBT @ $10,000
>short return on 50% gain ($5000)
((1/10000)-(1/5000))*-1000 = 0.10000000 XBT
>which is equal to
0.1 * $5000 = $500