Leverage Trading

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Leverage Trading

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

Eric Mades Answered question July 24, 2024
0

The biggest difference for me straight off is if you want to be guaranteed to be liquidated
or stopped out go with $100 @ 50x it will only take a couple of % of market movement
to trigger loss or stop.

Most experienced leverage traders only use 2 or 3x

When you hear “the market is over-leveraged”
they are referring to the absolutely crazy high gambles like 50x and these either pump
the markets when the shorts get liquidated or dumps when the longs get liquidated

Eric Mades Answered question July 24, 2024
0
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