Get started

Leverage

this thing is about to smash the market into little tiny piecesarent we all glad we reinvested early in semiconductors? i sure am. the short semiconductor etf is going completely insane. expect that to continue. if you look at the 5 minute you can see we are poised for breakout. we will probably go outside upper envelope, swing back to value area low before moving higher. i dont see anything thats going to stop the total collapse of the semiconductor industry as we know it, do you?
AMEX:SOXSLong
by cerealpatterns
FTM Could be long Due to Pure PA With Proper RMI Have draw A chart of FTM/USDTPERP and during analysis found to price action scenario with bullish moment. First It's Inverse H&S Pattern and Second Bullish flag. Both Patterns are pure bullish but seeing a market now days totally sideways or ranging so if I trade this pair so I'm calculate Risk Management with safe side Margin %age. Because everyne knows trading is risk so when market gave pattern then Should be pick a opportunity.
FLong
by mobi3582
1
EXPLAINED: Gearing and how it worksThere is one tool with trading, which you can accelerate your portfolio, compared to with investing. I’m talking about Gearing (or leverage). To wrap our head around this concept, here’s a more relatable life example. When you buy a house for R1,000,000, it is very similar to trading derivatives. Initially, the homeowner most probably won’t have the full R1,000,000 to buy the house with just one purchase. Instead, they’ll sign a bond agreement, make a 10% deposit (R100,000), borrow the rest from the bank and be exposed to the full purchase price of the home. This is a similar concept for when you trade with gearing. Gearing is a tool which allows you to pay a small amount of money (deposit) in order to gain control and be exposed to a larger sum of money. You’ll simply buy a contract of the underlying share, use borrowed money to trade with and be exposed to the full share’s value. Let’s simplify this with a more relatable life example: How gearing works with CFDs Let’s say you want to buy 1,000 shares of Jimbo’s Group Ltd at R50 per share as you believe the share price is going to go up to R60 in the next three months. You’ll need to pay the entire R50,000 to own the full value of the 1,000 shares (R50 X 1,000 shares). In three months’ time, if the share price hits R60 you’ll then be exposed to R60,000 (1,000 shares X R60 per share). Note: I’ve excluded trading costs for simplicity purposes throughout this section If you sold all your shares, you’ll be up R10,000 profit (R60,000 – R50,000). The problem is you had to pay the full R50,000 to be exposed to those 1,000 shares. When you trade a geared instrument like CFDs, you won’t ever have to worry about paying the full value of a share again. A CFD is an unlisted over-the-counter financial derivative contract between two parties to exchange the price difference of the opening and closing price of the underlying asset. Let’s break that down into an easy-to-understand definition. A CFD (Contract For Difference) is an Unlisted (You don’t trade through an exchange) Over The Counter (Via a private dealer or market maker) Financial derivative contract (Value from the underlying market) Between two parties (The buyer and seller) to Exchange the Price difference of the opening and closing price of the Underlying asset (Instrument the CFD price is based on) Let’s use an example of a company called Jimbo’s Group Ltd, who offers the function to trade CFDs. The initial margin (deposit) requirement is 10% of the share’s value. This means, you’ll pay R5.00 per CFD instead of R50, and you’ll be exposed to the full value of the share. To calculate the gearing (or leverage ratio) you’ll simply divide what you’ll be exposed to over the initial margin deposit. Here’s the gearing calculation on a per CFD basis: Gearing = (Exposure per share ÷ Initial deposit per CFD) = (R50 per share ÷ R5.00 per CFD) = 10 times gearing This means two things… #1. For every one Jimbo’s Group Ltd CFD you buy for R5.00 per CFD, you’ll be exposed to 10 times more (the full value of the share). #2. For every one cent the share rises or falls, you’ll gain or lose 10 cents. To have the exposure of the full 1,000 shares of Jimbo’s Group Ltd, you’ll simply need to buy 1,000 CFDs. This will require a deposit of R5,000 (1,000 CFDs X R5.00 per CFD). With a 10% margin deposit (R5,000), you’d have the exact same exposure as you’d have with a conventional R50,000 shares’ investment. Here is the calculation you can use to work out the exposure of the trade. Overall trade exposure = (Total initial margin X Gearing) = (R5,000 X 10 times) = R50,000 With an initial deposit of R5,000 and with a gearing of 10 times, you’ll be exposed to the full R50,000 worth of shares. In three months’ if the share price reaches R60, your new overall trade exposure will be R60,000 worth of shares (1,000 shares X R60 per share). If you sold all of your positions, you’d bank a R10,000 gain (R60,000 – R50,000). But remember, you only deposited R5,000 into your trade and not the full R50,000. This is the beauty of trading geared derivative instruments. If you want any other technical trading or fundamental term explained, please comment below. I'm happy to help. Trade well, live free Timon MATI Trader Feel free to follow my socials below.
JSE:J200Education
by Timonrosso
XRP Trade Signal (8X Lev. 500%+ Potential)We haven't given up on XRP and below I share with you our full trade signal from 24-Nov. As usual, let me warn you that leveraged trading is for experts only and carry high risk. You can liquidated and lose all funds. Make sure you know what you are doing if you engage in this type of trading. We recommend spot trading for beginners and intermediate traders only. Leveraged for experts/advanced. ----- LONG XRPUSDT Leverage: 8X Buy-in: $0.3825 - $0.4000 Targets: 1) $0.4290 2) $0.4520 3) $0.4890 4) $0.5310 Stop-loss: Close daily below $0.3750 Liq. price: $0.3552 Capital allocation: 2% --- Thank you for reading and for your continued support. Namaste.
Long
by AlanSantana
7
ADA Trade Signal (8X Lev. 400%+ Potential)I would like to share with you our trade signal for Cardano (ADAUSDT). This one we are going with 8X lev. which is high risk. For experts only. Beginners stay away. There is high risk involved with margin, leverage, futures and all that type of trading. Spot trading for beginners. Only move to the other tools once you dominate the easier ones. If you do decide to jump in without doing your research first, please keep in mind that there is a price to pay to learn. Well, there is always so much to learn... But we can do it easily from our mistakes. Here is the full trade signal from 23-Nov. It is already beyond the buy-in and some targets missing but the numbers are good and can be used. ------ LONG ADAUSDT Leverage: 8X Buy-in: $0.3025 - $0.3180 Targets: 1) $0.3455 2) $0.3800 3) $0.4040 Stop-loss: Close daily below $0.2950 Liq. price: $0.2827 Capital allocation: 2% ----- Thank you for reading. Feel free to support us with your comments. Namaste.
Long
by AlanSantana
11
Bitcoin Cash Lags Behind But Not For 10X Long (85% Possible)We are seeing how Bitcoin Cash (BCHUSDT) is lagging behind some other altcoins but we believe this won't continue to be true for long. The early/mid November shake-out has been completed and what follows is a bullish jump. Today BCH moves above EMA10 after multiple days of consolidation. The RSI is still weak but the short-term bias is pointing up. The easy target is set at 20% or $133. The next target on a higher high is $208. We are active with 10X on this one. You can find more high-risk lev. trades in the "Related Ideas" below. Thank you for reading. Namaste.
Long
by AlanSantana
3
Cardano | Bottomed Out (Very High Growth Potential)My favorite charts of all are the bottomed out ones... Cardano (ADAUSDT) is trading pretty low here, its lowest price since January 2021. We can look at this from a TA perspective as well as a trading perpective. Trading is best right now because of the low risk of this setup. A stop-loss can bet set around $0.2950, manual, which is less than 6%. While the potential targets... 44.4% is an easy one but it can go even to 68%. We are actually active on this one with lev., 8X. Let's see how it goes. Namaste.
Long
by AlanSantana
5
What Every Trader Should Know About Margin Margin can be a powerful tool to leverage your investment returns or to finance purchases apart from your portfolio. Margin is an extension of credit from a brokerage firm using your own eligible securities as collateral. Most traders typically use margin as a means to purchase additional securities, but there are other uses too. Interest is charged on the borrowed funds for the period of time that the loan is outstanding. Benefits of a Margin Trading Account: Use the cash or securities in your account as leverage to increase your buying power. Get the lowest market margin loan interest rates of any broker. Diversify trading strategies with short selling, options and futures contracts, or currency trading. Borrow against a margin account at any time and repay the loan on your own schedule. Margin borrowing is only for experienced investors with high risk tolerance. You may lose more than your initial investment. Before trading on margin, understand the following risks: Trading losses may be greater than the value of the initial investment Leveraged investments create a greater potential risk of loss Additional costs from margin interest charges Potential margin calls or liquidation of securities Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
14
What is margin trading & How does it work? Margin trading is when you pay only a certain percentage, or margin, of your investment cost, while borrowing the rest of the money you need from your broker. Margin trading allows you to profit from the price fluctuations of assets that otherwise you wouldn’t be able to afford. Note that trading on margin can improve gains, but increases the risk and size of any potential losses. But what is the margin in trading? There are two types of margins traders should be aware of. The money you need to open a position is your required margin. It’s defined by the amount of leverage you are using, which is represented in a leverage ratio. There are also limits on keeping a margin trade running, which is based on your overall maintenance margin – the amount that needs to be covered by equity (overall account value). Brokers require you to cover your margin by equity to mitigate risk. If you don’t have enough money to cover potential losses, you may be put on a margin call, where brokers would ask you to top up your account or close your loss-making trades. If your trading position continues to worsen you will face a margin closeout. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
6
Bitcoin $20,000 Resistance The Downtrend ContinuesIt seems like Bitcoin wants to get back above $20,000 but it is starting to face resistance getting back above $20,000. We've been ranging from $18,200 - $20,300 for over a month now. Due to the stochastic RSI wave peaking and being at overbought levels on the daily I believe short term Bitcoin will be going back down to the low $19,000 levels within the next week or two. We've formed our daily wave and now it's starting to crest out. I put in a short above $20k looking for Bitcoin to hit around $19,500 level to close the trade. Much peace, love, health, and wealth!
COINBASE:BTCUSDShort
by peacefuljustin