How to increase leverage in BigONE

How to Increase Leverage in BigONE

BigONE is a cryptocurrency exchange that allows users to trade with leverage. Leverage is a tool that can be used to increase potential profits, but it also comes with increased risk. Before using leverage, it is important to understand how it works and how it can be used effectively.

What is Leverage?

Leverage is a financial tool that allows traders to borrow money from a broker to increase their buying power. This means that traders can trade with more money than they actually have on deposit, which can increase their potential profits, or losses.

How Does Leverage Work?

Leverage is expressed as a multiple, such as 2x or 5x. This means that the leverage is multiplying the amount of crypto you really hold. For example, if you have 1 BTC and you trade with 2x leverage it is as if you are trading with 2 BTC.

How to Use Leverage to Increase Your Profits

Leverage can amplify your profits, because it's like trading with more money. Here is an example to illustrate it. Say you are trading a BTC/USDT pair. And the current price of BTC is $40,000. You have 2 BTCs in your account and use 5x leverage, then you can trade with 10 BTC. If the price of BTC increases by 5%, you will make a profit of $1,000. Without leverage, your profit will be limited to $400 (5% of your 2 BTC). Therefore, with 5x leverage, your potential profit is amplified by a multiple of 5.

Steps to Increase Leverage in BigONE

The steps to increase leverage on BigONE exchange are as follows:

1. Log in to your BigONE account.
2. Click on the "Trade" tab.
3. Select the trading pair you want to trade.
4. Click on the "Leverage" tab.
5. Select the leverage ratio you want to use.
6. Click on the "Apply" button.

Risks of Leverage Trading

Leverage trading can also amplify your losses, as this is like using money that is not your own. There are a number of risks associated with leverage trading, including:

• Increased risk of loss: Leverage trading can increase the amount of money you lose if the market moves against you.
• Margin calls: If the market moves against you, you may receive a margin call from BigONE. This means depositing more money to cover your losses, or your position will be liquidated to cover your losses.
• Liquidation: If you do not meet a margin call, your position will be liquidated. This means that your coins will be sold to cover your losses.
• Increased volatility: Leveraged trading can increase the volatility of your trading. This means that your profits and losses can be more extreme.

Tips for Successful Leverage Trading

Here are a few tips to abide by when using leverage:

• Don't overextend yourself: Only trade with an amount of leverage that you can afford to lose.
• Have a trading plan: Before you start trading with leverage, have a trading plan that includes your entry and exit points.
• Use stop-loss orders: Stop-loss orders can help you to limit your losses if the market moves against you.
• Monitor your trades closely: Leverage trading can be risky, so it is important to monitor your trades closely.

Conclusion

Leverage is a powerful tool that can be used to increase your profits. However, it is important to understand the risks associated with leverage trading before you start using it.

Disclaimer: The information provided in this article is for educational purposes only. It is not intended as financial advice. Please consult with a financial advisor before making any investment decisions.