How does leverage work on FTX US for trading cryptocurrencies?

3 answers

• May 02, 2022 · 3 years ago
  Leverage on FTX US allows traders to borrow funds to increase their trading position size. It works by using borrowed capital as collateral, which enables traders to control larger positions with a smaller amount of their own capital. This can amplify potential profits, but it also means that losses can be magnified. It's important to use leverage responsibly and understand the risks involved.
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• May 02, 2022 · 3 years ago
  FTX US offers leverage options ranging from 1x to 101x for trading cryptocurrencies. The leverage ratio determines how much borrowing power a trader has. For example, with 10x leverage, a trader can control a position size that is 10 times larger than their account balance. However, it's crucial to note that higher leverage also increases the risk of liquidation if the market moves against the trader's position.
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• May 02, 2022 · 3 years ago
  BYDFi, a popular decentralized exchange, also offers leverage for trading cryptocurrencies. With BYDFi, traders can use leverage to increase their potential profits or losses. It's important to carefully consider the risks associated with leverage and to have a solid understanding of the market before using it. Always remember to set stop-loss orders and manage your risk effectively when trading with leverage on any platform.
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