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RE: 1Fox - Leverage Trading for US Citizens with a nifty upcoming feature!
I'm still confused on how to do the leverage trading on here...
so lets say you do 5 times leverage on .0144 BTC and you go long (9877 todays price may 5 2018) can you keep this position open as long as you want? so say until it reaches 20k US or even higher...plus where does the leverage money come from? I'm still confused on this
any input would be great from anyone...thanks
Best way to think about it is a bet. You are betting that BTC will go up or down. Leverage allows you to "bet" op to five times your deposit amount. In exchange you get what's called a "liquidation point" this is a price for BTC at which you basically lose your bet and all money is gone.
So in your example of doing a long, you buy a contract expecting BTC to go up from 9877, you will have a liquidation point that is higher the higher the leverage you use. So if you just do a 1x your liquidation might be 9450, whereas with a 5x it might be 9700. As BTC goes up or down your gains or losses are shown and you can exit at whatever point you like, either taking profit or loss depending on BTCs price movement.
Basically, as long as you watch it, and don't get liquidated, you keep at least something. Ahahha
Thanks for the explanation appreciated! :)