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What’s 100x leverage?

2018/10/25 10:20:18

In financial trading, the use of leverage can multiply your profit, while you have to assume bigger risk of loss at the same time. Bexplus leverage is a derivative financial instrument of financial trading. Bexplus users can enlarge their tradable assets with the leverage on the platform, and thus enjoy bigger profit from higher investment. But they have to bear the correspondingly high risk at the meantime. 


First, what is margin trading? 

Margin trading is to make big investment with small principal by enlarging it several times, in a bid to multiply the profit. But at the meantime, you have to take multiplied risk of loss. Since digital assets have major price fluctuations, you ought to have a full understanding of the risk of margin trading before you prudently use it. 


Second, when the price of coins is expected to rise, how to realize multiplied profit with leverage?

With BTC/USDT as an example, Bexplus offers up to 100 times leverage to investors. That is, if you buy up, you can get 100% profit from 1% price growth. 


Three, when the price of coins is expected to fall, how to make money by short selling? 

With BTC/USDT as an example, Bexplus offers up to 100 times leverage to investors. That is, if you buy down, you can get 100% profit from 1% price decrease. 

You can gain profits no matter the price goes up or down.


Four, what is the risk of margin trading?

Leverage makes it possible to gain large profit with small capital. But if the trade direction is judged wrong, the damage will be enlarged in equal proportion. Thus, ordinary traders ought to avoid heavily holding stocks in case of liquidation. 


Five, how to reduce the risk of leverage? 

1.Appropriately take advantage of leverage times, and control position sizes.

2.Timely stop loss and take profit, and spontaneously close the position.

3.Timely add margin to ensure the ratio of total assets / leverage limit exceeds 110%.


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