 Welcome back ladies and gentlemen. I want to thank you because you could be anywhere in the world And you decided to be here with me right now. Let's jump right into it today We're are talking about leverage trading how to trade with leverage and Basically how to use bitmex to trade with the leverage what we use to trade with leverage is bitmex So we're gonna go over it And and we've been getting this question a lot so we definitely want to dive into it and And get you guys on the on this on the same page and on the right path to being able to trade with leverage Because trading with leverage you can definitely make a lot more profits But you got to be able to trade right you got to know what you're doing. If not, it is not recommended for you All right So let's jump right into it guys Let me switch the cam over boom put me on that top corner. There we go. Perfect All right guys, so how to trade with leverage on bitmex All right, so first of all what is leverage trading Sometimes it is referred to as a margin trading Leverage trading involves borrowing funds to amplify potential returns when buying and selling cryptocurrency When you leverage trade, you can access increased buying power and may open positions that are much larger than your actual Then your actual account balance. All right, so basically You get you get you get to borrow money from the exchange from the broker to have more buying power and you don't have to risk put up all that money up front in Order to buy more than you have, you know what I mean And I'll give you guys some examples For example, if you have an account balance of five bitcoins and you want to place a trade leverage With the leverage of 10 to 1 You can open up a position worth 50 Bitcoin This means that if the market moves in your favor, you'll be able to access 10 times the profits However, it also affects it also has the effect of magnifying Losses when the market moves against you. So it's gonna affect you in in both Ways, you know whether if it if it goes with you, it's favorable for you Then it's you're gonna gain, you know If you have if you're using 10 leverage and the market moves with 1% then you're gonna gain 10% So you're getting 10 times every percentage that it moves, right? So if you're using 10 next leverage, it's 10 times whatever the market moves So if it moves 1% you make 10% profit if it moves 2% you make 20% profit But it works the same exact way on you know If you're losing and the market moves against you when it goes down 1% you lose 10% profit if it goes down 2% You lose 20% profit. So everything is scaled up to 10 times Whatever the market's doing, all right Let me there we go Let me see margin trading is risky Speculate speculative and complicated so it's not suited to beginners and it's best left to experience traders So that's that's you know what we talked about You you definitely if you're a beginner you're just starting you don't want to do this especially on your own If even if you're following someone like I have people that are new and they're beginners and they try to follow me It's hard if you're a beginner you really got to put your time in Before you begin margin trading, so I definitely if you do do it I definitely recommend using very very little margin like 2x no more than that All right, so Let's jump into the next Slide here. How does it work? So when you open a position a portion of your account balance is held as Collateral for the funds you borrow from the exchange if your trade is successful and you close the position at a profit Your collateral is returned to you along with those profits minus any fees So that's another thing when you're when you're trading on margin. You do get charged fees per trade You have to check, you know on your exchange all the fees are always different however if the market moves against you and you're in You're in the loss your trade will automatically be closed and your collateral Liquidated when the mark when the market reaches a certain price. This is known as the liquidation price So you always need to know your liquidation price the more leverage you use in a trade the Smaller the quicker you can hit that liquidation price because the smaller room you have to wiggle So that's why we never recommend more than 10x Leverage at a time. That's you. That's usually where we're at. I think once you can you can make a case for 25x, but You get once you get to 25x You're on the right on the line of gambling and anything beyond 25x. You're just gambling. There's there's nothing cool about trading with a hundred X margin A hundred X leverage that's just stupid. It's it's You can't sustain that it's just not possible The exchange is against you and All odds are against you Just a very very small move against you you get liquidated and you don't want to you don't want to be in that position Trust me. Trust me. It's happened to me So I've learned it hard way. I recommend you guys to listen to me This is from experience Do not go beyond 10x if you're a beginner you shouldn't even go beyond 5x. You should just be around 2x honestly Yeah, you don't want to get liquidated either way you always want to have and I'll show you guys You're it always shows you your liquidation price Before you even enter your trade so you'll know where it's at and then oh you should always be using a stop loss regardless So your liquidation price should never be hit if you're trading properly All right, let's jump to the next one How to leverage trade on bit max so while bit max offers several crypto currencies to trade all Profits and losses are settled in Bitcoin, which bit max refers to as X BT Instead of the more often seen BTC so bit max uses the words instead of you know BTC Meaning Bitcoin bit max uses X BT, but it's the same thing. It's Bitcoin They just use their own things called X BT. So don't get confused by that As a result users must deposit and withdraw funds in Bitcoin rather than dollars Even though dollars are what the platform's crypto currencies are traded against so when you're trading in bit max All are your trades are traded against US dollars But you can only enter trades through Bitcoin so that you could only withdraw as Bitcoin You could fund your deposit and make fund your account through Bitcoin. That's it So you can't you have anything else and you can't use US dollars All right And it does offer several Cryptocurrencies as well other than Bitcoin to trade And we'll jump we'll get into that so you guys can see what those are as well All right, so how to leverage trade on bit max step one register for a bit max account simple enough, right? You just go to bit max comm Gotta register enter information and boom. That's it. You're done now to know bit max's terms and conditions state that US residents and Citizens aren't allowed to access its services or platform Now there is there are ways around this But just know that if you're in the US if you're US resident or citizen, you're not allowed To access it and if you're caught accessing it from a US You know IP address or whatever Um, basically they give you about seven days, I believe To move your funds out of your account. So if you're caught accessing it They don't just close your account and you know, take your money They give you seven days to move the funds out of your account and then they close your account If you have questions that of that if you are US resident I would say send me a DM and we can talk in private But as far as bit max's terms and conditions state US residents and citizens aren't allowed to access its services or Platform all right guys also another thing when you're registering for bit max In if in the in the description we have a link for Bitmax, okay, it's a referral link What what happens if you use it you get a discount on your fees for six months, okay? So you use our link you get a discount or on referral fees for six months We do we do make money off of Trading fees, I guess I guess what they discount you from we make money off of that So if you guys want to help us to support us, you know, you can use our link We'd appreciate it. If not, you don't have to use our link. That's up to you It's not gonna make or break us. You know what I mean? step 2 deposit funds Into your account Simple enough, right? So click on the account tab at the top of the screen to be taken to your wallet Click the green deposit button and scan the QR code or copy your wallet address You can then use that address to deposit Bitcoin into your bitmax account So you hit it you hit your the account tab on the top You're gonna hit deposit right so you this right here, and then you're gonna copy the Wallet address or you know scan it and that's basically it. You just send it over simple enough Step 3 navigate to the trading screen Click the trade link at the top of the screen and you'll be taking you'll be taken You'll be taken to the trading screen where you can click the tab of the crypto You want to buy or sell Bitcoin Cardano Bitcoin cash ether like coin Ripple. There's also Tron and And some other I believe So these right here you just click which one you want to trade Boom, and that's it. You're done you and then you will not you're done But then you can see their charts you can see how the price is you can see all that and then that's how you trade it Real quick, we're gonna stop right here at step 3 to do the question of the day guys So let's jump which which where were we right here? All right here, so I don't forget question of the day guys Remember You can win a free month a free month membership to our trade room by answering the question of the day Okay, every video we will have a random question about something in the video The question will always be in a random area of the video find a question Then find the answer post your answer in the comments for a chance to win a free months membership to our trading room Winners are picked randomly once the video receives over 30 likes Good luck. So guys we need to hit 30 likes if we can't hit over 30 likes We don't do the giveaway Make sure everyone that's leaving comments to also like the video and also follow us you have to be following us All right The question of the day is if your entry price is 11,670 and you use 10x leverage Price goes up 5% What is your profit? So your entry price was 11,670 dollars You entered there using 10x leverage The price from then from 11,670 Went up 5% What's your profit? All right, so that is a question of the day. Let's jump right back into this All right, we already finished with this. Let's move on to step four Step four is enter the details of your position This is very very important guys a lot of people mess up with this especially when it comes to leverage So first let's let's talk about the position in the order box This is your order box right over here guys. The order box is to your left-hand side. This is it You have your limit your market your stock market and you can change this to stop limit as well You can also change it to a trail stop Here is the quantity is where you enter the price The buy market sell market, etc Select the type of order you want to place for this example, we'll be using a market order So market order is this right here that means that um Your the price is filled at whatever The best current price is in the market All right, so that's what that means Um enter the quantity of your trade that is the amount you want to buy or sell in us dollars So um here it's actually different Um, it's supposed to be number of contracts. So you decide how many contracts you want to you want to buy or sell um And you can see the value of it here in the cost Cost your order value so the cost and order value are the two things you're looking at The cost is what it's actually costing you From your balance, okay the order value is what you're getting with whatever leverage you use Step five set your leverage Um, use the slider below the order box to set the desired Level of leverage for your position in this example our leverage is set to five x. Okay This is So let's if we go back. Let me see. Can I go back? Yep So this is your order box, right after you set up your order box and you're you're ready to go with your order Then you're going to come down here You're going to want to make sure this is open hit that come down here And you're going to use your leverages is your leverage right here. So you have to pick how much leverage you want to use Like I said, I recommend never more than 10 Um, if you're a beginner you shouldn't be doing more than two So you can work your way up as you you learn how to do this Um, and once you're very comfortable is when you should be at 10 before that you should never even be before more than five x All right, um So this is it right here be careful when adjusting Leverage you do not want to click a wrong one by mistake and get liquidated instantly Trust me tapping to me tapping a lot of people Be very very careful guys Step six review the details of your transaction Take a moment to review the full details of your transaction The quantity field shows the value of your position But because you're trading with leverage the money you're putting at risk is less than this The cost field details the maximum amount you can lose on the position if the market moves against you Order value shows the value of your position in xbt So this is like I was telling you Your cost here. This is what you're actually risking Out of your own pocket, right? So this is um, if you get liquidated completely This is what you lose, right? That's why we don't want to get liquidated Whatever you're liquidated for this is the cost here. Okay. This is what's your collateral basically This is what you have to focus on Um, then depending on the leverage you use is what the order value is going to be so the order value Will change depending on that All right Step seven open your position If you think the price will rise and you're going long click on buy market If you're shorting because you think the market will fall click on sell market An order confirmation screen will appear and contains information such as the level of leverage Order value cost and the estimated liquidation price Review all details carefully before clicking on buy or sell to confirm your order All right, so I'll I'll do an example of of an order so you guys can see exactly what I'm talking about here. All right Um going along with 10x leverage No, while your profit can exceed 100% losses are limited to 100% of the margin requirement All right, so you can make more profit than 100% but obviously you're not going to lose more than 100% over whatever your cost was Um, so here's just a different profit scenarios. Um, entry if your entry price is 11670 You're using 10x leverage your margin is 1167 Um liquidation price is 10503 and then Here's what can happen, you know with a price change. So a 5% gain for this price Would end up at 12254 which would profit you 584 dollars Or 50 profit. So 5% remember because we're using 10x leverage 5% Equals 50 profit 10% equals 100 profit and so forth And then the same thing On if you're losing if you're losing you lose 5% you actually lose 50% of your cost. So whatever it is, you're risking All right, so let's jump into the bit max real quick and as you can see here like I was telling you guys um, if we go here to um To quantities so we're putting here whatever amount, you know, um, we want in In Usd, but you're not actually paying that full amount. So depending on How much leverage you're using Is what the cost is going to be. So here we have it set at 10x So for $2,000 if we put at 2000 we're actually only using 0.0180 Which is the equivalent of about 200 dollars And so forth So you'll see your order value is this right here, but your cost is this right here and you'll see if I change this So I change it to 5x you see that your cost Is a little bit more expensive because now you're only using 5x, you know what I mean? So you have to put a little bit more money in So if you're using 2x you do have to put more money in Um, that's because you're using less leverage. So if you're using less leverage you're borrowing less money So you have to put more of your own money in All right, I hope that makes sense So even though 10x you you have to risk less of your own money You can get liquidated a lot easier versus 5x You have to put more of your own money in but you're liquidated. It's it's more rare for you to get liquidated all right So let's let's go through the process of buying So let's say we're doing a market order for 2000, right? We want to buy 2000 usd worth of bitcoin worth of our position. So we're going to pay 200 for that So 200 times 10 Equals 2000 right 200 dollars times 10x, which is the leverage we're using equals $2,000 So we're only risking $200, but we have control of $2,000 Once we hit buy You know, we've reviewed our trade We know what our cost is We know what our leverage is now we hit buy boom and brings the confirm your order screen So it says buy 2000 contracts of xbt xbt usd at market. So remember market. It's a market order um The position will be opened in isolated margin mode isolated margin will use your selected margin preference Which is 10x. That's what we chose. This will limit your loss. Watch your liquidation price carefully So the order value remember we spoke about this is the total which is $2,000 usd Um, the cost at 10x leverage is only $200 usd The available balance, this is what you have available. So obviously we don't have enough To cover this so we wouldn't be able to to enter this trade Position size after execution. So 2000 is what we're buying Uh mark price. So mark price is the price that, um You know, it's currently at Um estimated liquidation price So your estimated liquidation price, this is where your entire position, which is this your entire cost would be liquidated Bitcoin we need to fall from the mark price of 11,305 Down to 10,261 for you to get completely liquidated of your $200 Now we're using stop losses, of course. So we don't have to worry about That drop like that. But if you don't use a stop loss, that's where you will be liquidated Um, so in order for the price to fall to for us to get liquidated The price will have to fall 9.25 or a thousand and 46 dollars All right Once you're ready you hit buy obviously we can't because we don't have that Amount available in this in this account and but that's that's it. That's the whole process to trading with leverage. So I hope you guys, um I know that was a lot I hope you guys were able to keep up and understood exactly, you know, what we're saying what, um Every other information we gave you guys I I definitely recommend you guys to Go over the video again and write it down and and make a trade yourself While you watch the video and watch us do it If you have any other questions, just drop it in our comments And we're always happy to answer them if there's anything you're confused about Or anything like that And that's basically it guys make sure to subscribe to the channel and follow us, please It really helps us. Um, we're trying to build this channel up. We're doing we're giving all this information for free to you guys We're just going to continue to provide you guys value We've dropped five videos a week for the past three weeks And I'm sure you guys want us to keep doing this. So, um, so that's how you show us Your support and that'll keep us going to continue making videos You know every single week Giving you guys knowledge giving you guys breakdowns giving you guys an insight to our how we analyze markets and how we're trading Um, make sure to leave until if you want to enter the contest Just leave a comment below With the question with the answers to the question a day Follow us and like the video and as a bonus if you share it that'll help us a ton So we really appreciate it guys. Thank you for being with us today I am bitcoin j. We are bitcoin daily and we are out. Peace