How Leverage Trading in Crypto Actually Works...

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  • Опубликовано: 19 ноя 2024

Комментарии • 182

  • @filipmartinsson8766
    @filipmartinsson8766  5 лет назад +14

    Thanks for watching! Are you already trading with leverage or shorting bitcoin? Let me know below. If not, make sure to get your $60 trading bonus by signing up here: bybit.filipmartinsson.com

    • @Wideolink
      @Wideolink 3 года назад +1

      Awesome explanation!

    • @YamadaDesigns
      @YamadaDesigns 3 года назад

      Nah, I’ll just Hodl. It’s risky enough as is.

  • @admin5g7
    @admin5g7 4 года назад +143

    This is the best explanation of Leverage trading I have found so far and I just wanted to say thank you for such detailed clarification

  • @ER-vb3if
    @ER-vb3if 4 года назад +36

    Brilliant explanation and the Home Loan "analogy" was bang on !!

  • @sirsa000
    @sirsa000 3 года назад +2

    The difference between a house loan and a leverage on crypto is that on the house you get liquidated if you miss a payment but on crypto you get liquidated if the value of your asset goes in the wrong direction, which is a HUGE difference

  • @CryptoJitsu
    @CryptoJitsu 4 года назад +7

    Thank you!!! I now get it! Basically, dont leverage unless A) you are willing to lose it all and B) you are fairly confident it will go up!

    • @Jcolecolej
      @Jcolecolej 4 года назад +3

      You won't lose it all of you keep your stop loss at the right position , you will lose just a part of your capital

    • @CryptoJitsu
      @CryptoJitsu 4 года назад

      @@Jcolecolej Is this available in the US at all?

    • @Jcolecolej
      @Jcolecolej 4 года назад +1

      @@CryptoJitsu I'm not from the US but I'm sure it's available there

    • @CryptoJitsu
      @CryptoJitsu 4 года назад +1

      @@Jcolecolej Not on Binance, says its not available. I think Kraken is the only place I can do it here and only at 5x (which is probably good) .... just dont want to sign up on Kraken.

    • @williambeechler4877
      @williambeechler4877 4 года назад +2

      @@CryptoJitsu watch chico cryptos new video on leverage trading. Do not buy into these influencers mlm leverage scams and certainly do not leverage trade on centralized exchanges that can keep track of every short and long buy in you make. Start with low amounts and low leverage until you are better at judging the market swings and pumps and dumps from whales as well.

  • @mr.speyside5240
    @mr.speyside5240 4 года назад +9

    You explained it well enough to scare me into never trying to do leverage trading. Screw That!

  • @kmod73
    @kmod73 8 месяцев назад

    One of the best explanations on how leverage trading works from a beginner's point of view👍

  • @MarkyGoldstein
    @MarkyGoldstein 5 лет назад +14

    That was very well explained Filip, especially also the comparison to house buying was nice! Please add 2 more videos: a) the risk of lending to margin trading and in general on DeFi b) going short (on Crypto), how does it work?

  • @NicuCastravet
    @NicuCastravet 2 года назад

    Good explanation on everyone being familiar with margin trading by using buying a house as an example.

  • @danielkhong1980
    @danielkhong1980 3 года назад +1

    Wow the audio is so clean and clear 👍🏻👍🏻👍🏻 Great presentation, I’ve learnt much ✌🏻

  • @LoonEamp
    @LoonEamp 3 года назад

    Wow! You should be an actual teacher. You explained this so smooth and perfectly.

  • @cameronillingworth8092
    @cameronillingworth8092 3 года назад

    Best leveraged explanation on RUclips

  • @QuentinQuark
    @QuentinQuark 4 года назад +4

    Thanks for the explanation. Would be great to have some diagrams to illustrate the concept!
    Leaves me wondering, if there are platforms that allow peer-to-peer lending for leveraged trades, how would one become a lender?

  • @stephensenices2558
    @stephensenices2558 4 года назад +3

    OK, Now I understand what margin trading is. great job explaining.

  • @paulseacroft9145
    @paulseacroft9145 3 года назад

    Mostly described how the downside works ..... But thats super important too.
    Great video, cheers buddy

  • @andrearene9376
    @andrearene9376 3 года назад +17

    So while crisis come's up .Bitcoin climbs lol 😆 Now i say crypto is better than stock investing in crypto should be in every wise individual to do list .

    • @salomemark8267
      @salomemark8267 3 года назад

      Investments are the stepping stones to success, investing is what creates wealth.

    • @user-bw4wz6bj7k
      @user-bw4wz6bj7k 3 года назад

      The best thing to do in this period is to buy silver and crypto

    • @mikefromwatchthisrocket.6930
      @mikefromwatchthisrocket.6930 3 года назад

      The Rice become richer by spending like the poor and investing Non stop,While the poor stay poor by spending like the rich yet not making any investment.

    • @kelvinfred6664
      @kelvinfred6664 3 года назад

      @@mikefromwatchthisrocket.6930 Most intelligent words I've heard today

    • @matthewjohnson4888
      @matthewjohnson4888 3 года назад

      Wow!!! imagine trading and stocking up Bitcoin from now till then!!!

  • @brianbowlsby3899
    @brianbowlsby3899 4 года назад +6

    Thank you for this! I wish others could be so simple and explained with real life examples!

    • @walterjames5179
      @walterjames5179 3 года назад

      As a beginner you need an expert trader invest under my company it not about watching videos and wasting your time on strategy I was ignorant doing so...so I decided to try Mr Adam Bruce trading service and ever since then he's has made $14000 for on every $5000 I invest just for 1weeks it's 100% safe and secure more information
      WhatsApp +1(530)2065348

  • @wisesum357
    @wisesum357 3 года назад +1

    Does leverage also multiply your percentage?
    Would it be useful to up my leverage while in a trade without increasing my position?

  • @marketMsLYA
    @marketMsLYA 6 месяцев назад

    Perfectly clear explanation, thank you.

  • @meredithrose2889
    @meredithrose2889 5 лет назад +9

    Best explanation. I finally understand!

    • @walterjames5179
      @walterjames5179 3 года назад

      invest under my company it not about watching videos and wasting your time on strategy I was ignorant doing so...so I decided to try Mr Adam Bruce trading service and ever since then he's has made $14000 for on every $5000 I invest just for 1weeks it's 100% safe and secure more information
      WhatsApp +1(530)2065348

  • @Tupsx57
    @Tupsx57 3 года назад +1

    If I have a set max amount to lose per trade (say 2% of capital), what would be the point of leverage? Wouldnt increasing leverage reduce my position size accordingly? Aside from reducing counterparty risk and being able to open more simultaneous positions to maximize my capital, are there any other reasons to use leverage?

  • @InvestGlobal
    @InvestGlobal 4 года назад +5

    Great video Philip! Was introduced to you through Ivan on tech academy!

  • @dellanomike
    @dellanomike 3 года назад +2

    There's something I dont understand... For example if I have 10 USD in my margin account, and 1000 USD in my spot trading account, I make an unsuccessful short at 100x, can the exchange take money from my spot trading account? (In isolated margin)

    • @inactive5895
      @inactive5895 3 года назад

      No the $10 is the only collateral. However using 100x the liquidation price will be very high.

  • @PrayRosaryDaily
    @PrayRosaryDaily 2 года назад

    I dont understand. If I risk $100 and I have 1k in my account will that 1k be touched if the 100 is liquidated?

  • @Demoaccount-i2k
    @Demoaccount-i2k 4 года назад +1

    1:2 leverage or 50%margin is the same thing right? Can you briefly explain how it works, can you use 1000$ example? For example crypto cost $50 and i have 1000$ to invest, straight away i am at 50%margin, and once it drops to 48% i am asked to top up
    How it works please explain

  • @carmenwatson2739
    @carmenwatson2739 3 года назад

    I decided to help and discuss the video in the social network. I am hoping that the popularity will grow

  • @gerardddd
    @gerardddd 3 года назад

    Wow, thank you! The only clear explanation on RUclips.

  • @peacepantherproductions
    @peacepantherproductions 3 года назад

    But what I don’t understand is the time frame involved,.. if you put in 1000 and borrow 9000, that means you have temporarily acquired 10,000, but for what duration? Can you sit there watching graphs and sell when you feel things are going to go down? Or..? I need to research more.

  • @mannycweiss3053
    @mannycweiss3053 6 месяцев назад

    great cadence, amicable voice. pleasant and most important smart info.

  • @kemillionaire2
    @kemillionaire2 3 года назад +2

    Thank you for your explanation

  • @thirdeyecat3593
    @thirdeyecat3593 3 года назад +1

    aaaah finally a nice clear explanation with examples, love it

  • @henryrodriguez1821
    @henryrodriguez1821 3 года назад

    Awesome video! What a great simple explanation of leverage and margin trading as a whole. The analogies where plus plus. Nice! Muy Bueno.

  • @sparkyd123
    @sparkyd123 3 года назад

    Great video. I'd like to know more about how one could become an investor/broker? What kinds of interest rates could you expect and what are the risks?

  • @evtimstefanov5441
    @evtimstefanov5441 3 года назад

    How is the profit calculated when you let's say buy some coin for a total of 20k usd but you add 5x leverage so 100k in total.The coin's price doubles so your coins are worth 200k usd - you sell them -> you return the 80k to the exchange and your final profit is 100k ?

  • @gary5799
    @gary5799 3 года назад +2

    what happens when you lower leverage mid trade, like if it's going down so you lower leverage and say double the capital

    • @stevecheshire5046
      @stevecheshire5046 6 месяцев назад

      You can only lower leverage if you have enough margin to do so. Best way is to add margin when price goes in the other direction so you don't get liquidated.

  • @squeak287
    @squeak287 3 года назад +1

    Can you explain a bit more about what the user can do during an open leveraged position. If you have chosen a 2X leverage but the price increases to only half and you don't think you will reach the 2X price point, if you close the position will you still be making a profit. So basically, if you are reaching, say, 1.5X and you don't fulfill the leveraged position can you still sell and make a profit? What happens there?

    • @callumalan5974
      @callumalan5974 3 года назад

      I don think you understand leverage. The 2x position you are referring to actually means that they lend you 2x more than what you put in. 2x doesn’t mean you think it will go that high. You can close your position at anytime and take profits

    • @squeak287
      @squeak287 3 года назад +1

      @@callumalan5974 you're right, i didn't understand it back then. Also my question wasn't formulated very well. I understand it a lot more now having made a few leveraged trades. Thanks for your comment

  • @lucosaures3638
    @lucosaures3638 2 года назад

    Hey, first of all, great video! Helped a lot. Second, I cant lose more money that what I have in my account right? As I get liquidated I only lose my own money, but is it possible for me to own money to the exchange?

    • @lucosaures3638
      @lucosaures3638 2 года назад

      @Adamu M Aji I have been trading for a long time and am a profitable trader. But only now I’m getting introduced to trading with leverage. And was just wondering if I could lose more money than what I put in?

  • @Alphiepk
    @Alphiepk 3 года назад

    so just to clarify you cant go negative balance into debt while leverage trading on say bybit? trying to get a full grasp before i do anything, the last thing i want to do is lose more money than my capital

  • @ronallan8680
    @ronallan8680 5 лет назад +3

    Hey Filip. Regarding the email you sent me. I had a thesis to be completed when I first enrolled to the course and therefore watched literally zero at the time. I now have the time given I am finished with my university. Is there a possibility I can enroll for the course with the current price?

    • @filipmartinsson8766
      @filipmartinsson8766  5 лет назад +1

      We'll make sure to get you in. Await our response :)

    • @ronallan8680
      @ronallan8680 5 лет назад

      @@filipmartinsson8766 Thanks Filip! Would really appreciate it 🙏

    • @ronallan8680
      @ronallan8680 5 лет назад

      Thank you Filip! I got your email! 😊 🙏

  • @marcoweiss4525
    @marcoweiss4525 3 года назад

    i have one question. if i use 10x leverage and the price sinks for example 10% means i lost 100% BUT did i lost it directly or only if i get out of the contract. like it drops 10% but i qill wait and it rises 25% couple days later.

  • @c0untry
    @c0untry 2 года назад

    So In there example of Bybit. If you have $300 and you 3 x it on leverage.
    Let's say the market goes down and you didn't have a stop loss. So you are liquidated, is there a chance you will owe Bybit money back. Binance has a repayment option, so what's the difference here.

  • @az6877
    @az6877 3 года назад

    could you please tell me is there interest involved in bybit leverage trading? how would I know for sure?

  • @leonardmcglynn4493
    @leonardmcglynn4493 3 года назад

    Great video, Excellent straight forward examples. Glad I finally found out how it actually works!

  • @willyblanco22
    @willyblanco22 3 года назад

    The best and clearest explanation i have found. Thanks so much.

  • @macanthonyeminent-zs1xk
    @macanthonyeminent-zs1xk Год назад

    I really don't understand where I can choose the leverage while trading in bybit

  • @clijeron1973
    @clijeron1973 3 года назад

    What a great analogy with a home purchase ... it just clicked right away ! Thank you.

  • @mjgetsweird3560
    @mjgetsweird3560 3 года назад

    Wait, so the exchange might make more money by liquidating your trade? So they actually have a huge conflict of interest, if I understand this correctly? I'm sure they wouldn't conspire with miners that hold large amounts of Crypto, right? Like F2 or something?

  • @hbfit3854
    @hbfit3854 3 года назад

    Can you do a 50x leverage with 100 dollars and then when the price goes up by 1% you have made 5000*1.01= 50 right?

  • @mercieella1221
    @mercieella1221 3 года назад

    Best video on leverage

  • @matiasss550
    @matiasss550 3 года назад

    If I ask for a loan I put x amount, borrowed the rest and have to pay monthly to the bank. How this compare with this??.... If I have 5000 us, borrowed x10 50000, then how I make the payment back to the exchange?.... SOrry I´m as rookie as hell but I don´t get it, nosense to me

  • @pfcgrob
    @pfcgrob 3 года назад

    Hi can u explain when i use 100usd on 10x leverage, why isnt my profit for expl if im up 10 procent 100 usd?? it says im 10 doll up like im not using any leverage… anyone help

  • @richardskead1
    @richardskead1 3 года назад

    nice simple explanation hope you have another video for the next question

  • @Arche2011
    @Arche2011 4 года назад +1

    Nicely explained the risk!

  • @muinagh
    @muinagh 4 года назад

    Which crypto exchange has the best daily interest rate?

  • @timmadden7918
    @timmadden7918 3 года назад

    Awesome, best video I’ve listened to about leverage trading.. thankyou!

  • @xbriskx
    @xbriskx 3 года назад

    Very well explained, finally. Thank you.

  • @salazar301
    @salazar301 3 года назад

    Thank you so much ! Best video ! I understand now!!

  • @kofio7581
    @kofio7581 4 года назад +1

    Really good explanation. Thanks

  • @GOASTWRITTER
    @GOASTWRITTER 3 года назад +1

    Thank you for this video! Lesson learned!

  • @matrevel9938
    @matrevel9938 3 года назад

    Hummm. Ok so let s say tomorow Google says we invest 10% of our reserve in BTC, opening a 100x leverage is probably a guaranteed way to make a lot of money !?

  • @desudesu8695
    @desudesu8695 3 года назад

    Thanks for the video.

  • @blackspiders741
    @blackspiders741 3 года назад

    Thank you, good explanation. I'll just stick at normal investing.

  • @kateroyston9416
    @kateroyston9416 3 года назад

    Perfect explanation,cheers.

  • @elssi_s
    @elssi_s 4 года назад

    Could you explain to me when to use a market or a limit order or a conditional order? I can't find any tuber that makes this really clear to me. Thank you so much, I will subscribe to your channel.

    • @stevecheshire5046
      @stevecheshire5046 6 месяцев назад

      Market order is a taker, limit order is a maker. As limit order your filling the limit order book. Market order takes it away from the book. Hence y fees can be different from Market to limit.

  • @beetleburper9440
    @beetleburper9440 3 года назад

    explained perfectly thank you

  • @scanntraxx
    @scanntraxx 4 года назад +1

    Good explanation mate! Thanks a lot!

  • @danielkay8288
    @danielkay8288 3 года назад

    nice comparison to the house crisis

  • @rinaldochristy
    @rinaldochristy 3 года назад

    Amazingly explained. Thank you very much, appreciate it!

  • @Sage16226
    @Sage16226 5 лет назад +1

    Like the new setup

  • @yoericktv9610
    @yoericktv9610 3 года назад

    I like your new set up.

  • @t3chnica11y5
    @t3chnica11y5 3 года назад

    Beautiful Explanation

  • @tysonstechtime5487
    @tysonstechtime5487 3 года назад

    Need more specific examples. If you start with $1000 at 10x and the price goes up 10%, how much do you earn? Also, If the price drops and you get liquidated. How much do you lose? $1000 or $10,000?

    • @jakeman1194
      @jakeman1194 3 года назад

      So if you have $1,000 at a 10X and the price goes up 10% you will double your money, earning 1,000. But if the crypto you have the leveraged trade on goes down 10%, you lose 1,000 not 10,000. The broker will liquidate the money before it drops more.

  • @evoii323
    @evoii323 3 года назад

    Very helpful, thanks!

  • @levanc.5763
    @levanc.5763 3 года назад

    From all the videos I watched, this one is the best. very easy and clear explanation. Great job Filip

  • @agsilverdojobullioncryptoa3907
    @agsilverdojobullioncryptoa3907 4 года назад +1

    Great explanations

  • @thailandtimelapse420
    @thailandtimelapse420 4 года назад

    are you into smart contracts?

  • @surajTheDoctor
    @surajTheDoctor 5 лет назад +1

    Fabulously explained with help of house example 👌👌

    • @ziomanzo
      @ziomanzo 5 лет назад

      heeey dentist ⚡🤘

  • @az6877
    @az6877 3 года назад

    best explanation about leverage, thank you.

  • @bigbrotherwatchesdannyboy306
    @bigbrotherwatchesdannyboy306 3 года назад

    There are youtube influencers promoting trading on leverage to noobs. 🤦🏻‍♂️🤦🏻‍♂️🤦🏻‍♂️🤦🏻‍♂️ This is the best way to get rekt.

  • @ProDMiner
    @ProDMiner 3 года назад

    hey brotha, 4 minutes in already better then anywhere else I been learning! I am new to this absorbing it all in :) So if I have bought x1 share for $1000 on a x5 leverage this means I have $5,000 in shares ? So I would be owning 5 shares in reality? Then if that price goes from $1,000 to lets say $1,100 that means on a x5 leverage I would have made $500 right? So same goes for loss, if I was on a 1x$1,000 share on a x5 leverage, and lets say it goes down to $900 that means on that x5 leverage I just lost $500, which in turn means I need to have that money in the account to let it Fluctuate correct>? Sorry for the long message:)

    • @stevecheshire5046
      @stevecheshire5046 6 месяцев назад

      Correct, except on leverage trading you don't actually "own" any of the shares. That's only in spot trading.

  • @frannyfierceful
    @frannyfierceful 4 года назад +1

    Thank you, great help!

    • @walterjames5179
      @walterjames5179 3 года назад

      invest under my company it not about watching videos and wasting your time on strategy I was ignorant doing so...so I decided to try Mr Adam Bruce trading service and ever since then he's has made $14000 for on every $5000 I invest just for 1weeks it's 100% safe and secure more information
      WhatsApp +1(530)2065348

  • @I-WIN-LOTTERY-JACKPOTS
    @I-WIN-LOTTERY-JACKPOTS 3 года назад +1

    Set a stop loss

  • @agsilverdojobullioncryptoa3907
    @agsilverdojobullioncryptoa3907 4 года назад +1

    Thank u , so many new people get rekt .. liquidated by using leverage so be careful, it’s easy to be greedy and try and make higher gains but with leverage means higher losses Aswell

  • @ziomanzo
    @ziomanzo 5 лет назад +1

    yeahhh,
    like you said ''cosier than the black hole'' ⚡
    And I liked the school board for complex stuff 👍

  • @KingPriyom
    @KingPriyom 4 года назад

    bybit works now in usa or now? i see so many american youtubers using bybit, they using vpn or what? also what is your opinion on coinbase pro?

    • @jahmansb
      @jahmansb 4 года назад

      Priyom Haider they use vpn, and if you get caught they can seize anything on there ... From my experience bit7 is ok in USA, but they don't have as many features. Be careful..

    • @jahmansb
      @jahmansb 4 года назад

      Coinbase pro is ok, but no leverage.. But no time limits either ... Remember the fees on both sites...

  • @derekaugust5027
    @derekaugust5027 3 года назад

    I love it when the leverage dudes get “REKT”

  • @jeromtablet
    @jeromtablet 4 года назад +2

    Great explanation, thanks a lot :)

  • @MrRhoidRage
    @MrRhoidRage 3 года назад +1

    You need more subs

  • @ruhelmiah2133
    @ruhelmiah2133 Год назад

    Great vid

  • @lars3960
    @lars3960 5 лет назад +3

    there is not much blood left in your foot after that video

  • @halbinminaya
    @halbinminaya 3 года назад

    Perfect video!

  • @muffemod
    @muffemod 3 года назад +1

    LOL if the broker liquidates your account it effectively guarantees that they won't be getting their money back!

    • @callumalan5974
      @callumalan5974 3 года назад

      Of course they get their money back because they don’t allow it to go lower than what they leant you. He explained this very well at the beginning

  • @bloxrtrading
    @bloxrtrading 4 года назад

    Thank you sir!

  • @clinton2446
    @clinton2446 3 года назад

    Yeah 0.2 of bitcoin as of April 2021 is currently $10,000

  • @biplav2447
    @biplav2447 4 года назад

    Awesome video

  • @dariozadro
    @dariozadro 4 года назад

    What if BTC goes to $19k in your example? Can you pay back the loan and keep all the upside from there?

    • @samopap3000
      @samopap3000 4 года назад

      yep, you keep it all and you cancel it at anytime but remember the daily loan interest and the sell fee is much higher

    • @walterjames5179
      @walterjames5179 3 года назад

      invest under my company it not about watching videos and wasting your time on strategy I was ignorant doing so...so I decided to try Mr Adam Bruce trading service and ever since then he's has made $14000 for on every $5000 I invest just for 1weeks it's 100% safe and secure more information
      WhatsApp +1(530)2065348

  • @wizz7622
    @wizz7622 3 года назад

    good video

  • @hadse1234
    @hadse1234 3 года назад

    Good shit

  • @deivysmarrero305
    @deivysmarrero305 4 года назад

    good explanation

    • @walterjames5179
      @walterjames5179 3 года назад

      invest under my company it not about watching videos and wasting your time on strategy I was ignorant doing so...so I decided to try Mr Adam Bruce trading service and ever since then he's has made $14000 for on every $5000 I invest just for 1weeks it's 100% safe and secure more information
      WhatsApp +1(530)2065348

  • @leifktaylor
    @leifktaylor 3 года назад

    So, let's say I can easily afford to lose $100, it's chump change to me. I invest $100 on a day trade with 100x leverage. This doesn't sound very scary and has a huge amount of upside with the downside only being losing $100? That sounds too good to be true.

    • @mrfab4383
      @mrfab4383 3 года назад

      Exactly who cares about losing $100, i would consider 100x on $100 with my 100 as collateral, whats the worst case scenario you lose $100 and your account closes down, who cares lol
      I thought it would be like they chase after me and i’m debt that would be worst case scenario.
      Upside is massive, downside is nothing

    • @irishjay9485
      @irishjay9485 3 года назад

      @@mrfab4383 i thought thats what he was sayinh in the video but surely that cant be right... Once you lose your own cash they dont chase u for the leveraged money wtf