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Leverage

📚 Leveraged & Margin Trading Guide + Examples ⚖️ Leveraged trading allows even small retail traders to make money trading different financial markets. With a borrowed capital from your broker, you can empower your trading positions. The broker gives you a multiplier x10, x50, x100 (or other) referring to the number of times your trading positions are enhanced. Brokers offer leverage at a cost based on the amount of borrowed funds you’re using and they charge you per each day that you maintain a leveraged position open. For example, let's take EURUSD pair. Let's buy Euro against the Dollar with the hope that the exchange rate will rise. Buying that on spot with 1.195 ask price and selling that on 1.23 price we can make a profit by selling the same amount of EURUSD back to the broker. With x50 leverage, our return will be 50 times scaled. With the leverage, we can benefit even on small price fluctuations not having a huge margin. ❗️Remember that leverage will also multiply the potential downside risk in case if the trade does not play out. In case of a bearish continuation on EURUSD, the leveraged loss will be paid from our margin to the broker. For that reason, it is so important to set a stop loss and calculate the risks before the trading position is opened. ❤️Please, support this idea with a like and comment!❤️
OANDA:XAUUSDEducation
by VasilyTrader
26
📚 Leveraged & Margin Trading Guide + Examples ⚖️ Leveraged trading allows even small retail traders to make money trading different financial markets. With a borrowed capital from your broker, you can empower your trading positions. The broker gives you a multiplier x10, x50, x100 (or other) referring to the number of times your trading positions are enhanced. Brokers offer leverage at a cost based on the amount of borrowed funds you’re using and they charge you per each day that you maintain a leveraged position open. For example, let's take EURUSD pair. Let's buy Euro against the Dollar with the hope that the exchange rate will rise . Buying that on spot with 1.195 ask price and selling that on 1.23 price we can make a profit by selling the same amount of EURUSD back to the broker. With x50 leverage , our return will be 50 times scaled . With the leverage, we can benefit even on small price fluctuations not having a huge margin. ❗️Remember that leverage will also multiply the potential downside risk in case if the trade does not play out. In case of a bearish continuation on EURUSD, the leveraged loss will be paid from our margin to the broker. For that reason, it is so important to set a stop loss and calculate the risks before the trading position is opened. ❤️Please, support this idea with a like and comment!❤️
OANDA:XAUUSDEducation
by VasilyTrader
14
Support Hit 💸 Bear Trap 👿 $40K In A Week ◀️Support Hit 💸 Bear Trap 👿 $40K In A Week ◀️ "Look someone opened a huge short... Oh, he was too late." KEY POINTS: - Bears Are Tired: Multiple Bullish Divergences On RSI - Bulls Are Still Energetic: Higher Highs on RSI - Historic Invincible Support Hit - Dumb Money Opens Shorts (At Support...) - Smart Money Bought The Dip - Psychologically Tempting Target: $40k - Funding Rate Favors Longs - Excellent RRR: 400% 🌌 OUR SIDE: POSITION: Long LEVERAGE: x10 ENTRY: $32 000 STOP LOSS: Daily close below $29 900 and staying there for six hours TARGET: $40 000
BINANCE:BTCUSDLong
by Elysian_Mind
5
IBM S/R Battle!!Hello Community! When looking at IBM we can see it clearly trading at the top of the triangle shown on the weekly TF. This has been a powerful rejection area in the past. We have to also take into consideration the more a S/R zone is tested the weaker it gets. The MACD is beginning to tick down and the RSI is showing overbought. I can see a rejection happening from here, which would be a great place to start a short with a tight stop-loss. If entering a trade don't forget to use a stop-loss. Don't trade with what you're not willing to lose. Love it or hate it, hit that thumbs up and comment. It'll be greatly appreciated! This is not financial advice. Safe Trading. Calculate Your Risk/Reward & Collect! Simplicity Wins (
NYSE:IBM
by rnaofs
GNW Beautiful Triangle!Hello Community! When looking at GNW we can see it clearly trading in a triangle on the weekly TF. We need to pay close attention to this pattern and watch to see how it reacts to the trendlines shown. Overall, this is usually a bearish setup but anything can happen in the trading world. Based on the technical indicators, it's looking bearish for the next week or two. The MACD is beginning to tick towards the red and the RSI is forming a lower high. I can see a retest of the lower trendline in the near future, which would be a great place to start a long with a tight stop-loss. If entering a trade don't forget to use a stop-loss. Don't trade with what you're not willing to lose. Love it or hate it, hit that thumbs up and comment. It'll be greatly appreciated! This is not financial advice. Safe Trading. Calculate Your Risk/Reward & Collect! Simplicity Wins (:
NYSE:GNW
by rnaofs
1
Statistical approach to risk management - Python scriptThis script can be used to approximate a strategy, and find optimal leverage. The output will consist of two columns, one for the median account size at end of trading, and one for the share of accounts liquidated. The script assumes a 100% position size for the account. This does not take into account size deviations for earnings and losses, so use with a grain of salt if your positions vary greatly in that aspect. Code preview cdn.discordapp.com/attachments/592684708551327764/848701541766529034/carbon.png TradingView does not allow posting external links until you've reached a specific reputation, so i can't use the url feature Input explanation WINRATE : chance of winning trade AVGWIN : average earning per winning trade AVGLOSS : average loss per losing trade MAX_LEVERAGE : maximum leverage available to you TRADES : how many trades per account you want to simulate ACCOUNTS : how many accounts you want to simulate the inputs used in the source code are from one of my older strategies, change them to suit your algorithm Source code pastebin.com/69EKdVFC Good luck, Have fun -Vin
VEducation
by Vindruee
Whats Next For Bitcoin...By running a Stochastic through Inphase-Quadrature frequency transform and smoothing it with ZLSMA (Zero Lag Least Squares Moving Average) we can get a good picture of the current position of Bitcoin. It appears BTC has nearly finished consolidating its low point and should be bouncing up in to a bull trend. The chart above and below is using macZLSMA from multiple timeframes including monthly, 2 weekly, weekly, daily and 12 hourly. ZLSMA is an excellent tool to find early trend directions/pivots. It does look like bitcoin is making its comeback but we can not forget that BTC is in a heavy down trend and the road out is a rough one full of pumps and dumps. One thing is certain and that is the institutions will be dumping on bitcoin soon as there is any public momentum to get on board. Institutions have been having a field day scooping up the positions from traders with excessive leverage and short stop-losses which in turn pushes the price down harder. To get around this margin traders can easily find tops and bottoms on longer timeframes such as the 2 hour and ride them with 10x leverage for 8-12 hours. A strategy like this means traders can trade both directions with the trend (short and long) regardless of what the institutions are doing. Be prepared for lots of dumps in the future and don't forget to take profits along the way. Using an oscillator such as a Stochastic RSI on the 3 hour chart traders can see dumps coming, exit their longs and enter a short, betting with the institutions snatching up the positions they were hunting. Happy Trading.
BNC:BLX
by veryfid
6
BTC/USD - Weekend dumpDears, You know the dump was in the night between Suturday and Sunday... When almost everybody rest... You know there was a lot opened long-positions with strong leverages... You know that happen when CME was closed. And you know I am not talking about gaps (I do not believe in gaps), but some CME contracts tonight could be settled... You know there would be price movements tonight... Which move to expect on Monday and Tuesday? I have my own guesswork, however, everybody should have their own... Best regards, Paweł P.S. Do not use high-leverages! Personally, I NEVER EVER use more than 6x. However, if you are the Muslim, leverages are HARAM - as you just could see, for really good reason!
BITSTAMP:BTCUSD
by PawelHodurek
1