How to go short in AscendEX leverage trading

AscendEX leverage trading empowers traders to amplify profits and losses by engaging in short-selling strategies with up to 100x leverage, but necessitates careful risk management.

Nov 25, 2024 at 10:45 pm

How to Go Short in AscendEX Leverage Trading

Leverage trading amplifies both the potential profits and losses in cryptocurrency trading. By employing leverage, traders can multiply their exposure to the market, allowing them to potentially generate significant returns. However, it is crucial to understand the risks involved before engaging in leverage trading.

AscendEX, a leading cryptocurrency exchange, offers leverage trading with up to 100x leverage on select cryptocurrencies. This guide will provide a step-by-step walkthrough of how to go short in AscendEX leverage trading.

Prerequisites:

• An AscendEX account
• Leverage trading enabled (contact AscendEX support to activate)
• Sufficient funds in your margin account

Step 1: Choose a Trading Pair

Select the trading pair you wish to short. For example, if you believe the price of Bitcoin (BTC) will decline, you would choose the BTC/USDT pair.

Step 2: Enter the Leverage Amount

Determine the amount of leverage you wish to apply to your trade. Remember, higher leverage magnifies both profits and losses.

Step 3: Choose "Sell" Option

In the trading interface, click on the "Sell" button. This indicates that you are shorting the asset, expecting its price to fall.

Step 4: Set the Order Details

Enter the amount of the asset you want to sell short. Set the "Price" and "Stop Loss" orders according to your trading strategy. The "Take Profit" order is optional.

Step 5: Margin Call and Liquidation

When trading with leverage, it is crucial to monitor your margin utilization. If the market moves against your position, your margin utilization will increase. AscendEX will issue a margin call if your utilization exceeds 95%.

If you fail to meet the margin call by depositing additional funds or reducing your leverage, your position will be liquidated. Liquidation occurs when your losses exceed your available margin.

Tips for Successful Leverage Trading:

• Understand the Risks: Leverage trading can amplify both profits and losses. Be fully aware of the risks before engaging in this type of trading.
• Trade Conservatively: Start with a low leverage ratio to minimize the potential for losses. Gradually increase your leverage as you gain experience and confidence.
• Use Stop Loss Orders: Set stop loss orders to limit your potential losses. Stop loss orders automatically close your position when the price reaches a predetermined level.
• Monitor Market Conditions: Keep an eye on market movements and news that may affect the price of the asset you are trading.
• Hedge Your Risk: Consider hedging your short position by buying other assets or using options strategies to reduce your overall exposure to risk.