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3 Things You Must Know About 100x Leverage

1. Increase your trading position with 100x leverage

One of the main benefits of trading on BitMart Futures is that it is extremely capital-efficient. With the spot market, if you want to trade 1 BTC, you need to have thousands of USDT. But with BitMart Futures, you can open a position with a fraction of the cost. And the higher the leverage is, the lower you need to spend on that position.

Let’s say that the current price of Bitcoin is 8,000 USDT (for ease of calculation/willing it into existence). You have 80 USDT, which by itself can only buy you just 0.01 BTC. But if you transfer your 80 USDT onto BitMart Futures, you would be able to trade with up to 100x leverage and open a buy/long or sell/short position of as much as 1 BTC.

This way, you have a chance to get higher gains that come with having a 1 BTC position than if you only bought 0.01 BTC, while using up a smaller amount of crypto for the position you opened.


 2. Here’s why 100x can be better than 10x

Let’s say you had the 100 USDT last week, when leverage was just 10x, instead of this week. (1 BTC was still at 8,000 USDT.) In this scenario, the largest position you would have been able to open would be 0.1BTC.

Now, let’s say that in both scenarios, you entered a buy/long position. Within an hour, BTC rose from 8,000 USDT to 10,000 USDT. Under the 20x leverage scenario, your 0.1 BTC long position would have netted you a 200 USDT gain. But under the 100x leverage scenario, with a 1 BTC position, your profits would go up to 2000 USDT


 3. Friendly reminder: Be cautious when trading with leverage

Remember: high reward comes with high risk. Bitcoin’s price can go up and down in a rapid manner, being a highly volatile asset. In the same way that leverage can multiply your gains, it can also compound your risks and potential losses when you open a buy/long position and the market goes down, or when you open a sell/short position and the market goes up. 

How much risk are we talking about? There will be a certain price point where your position will be liquidated, and you lose the money you put into that position.

Now, let’s say that in both scenarios, you entered a buy/long position. Under the 10x leverage scenario, your Liquidation Price is 7239 USDT. But under the 100x leverage scenario, your Liquidation Price is 7960 USDT. As such, traders must ensure sufficient balance in their wallets to add margin in time to avoid liquidation.


*you can get aid for the calculation by clicking the CALCULATOR sign


As futures trading comes with risk, BitMart Futures' main priority is to protect our users and mitigate potential losses. BitMart Futures offers stop-loss orders, take-profit-limit orders and other options to close out of your position before reaching the point of liquidation, even when you’re not watching the markets. 


ATTENTION: Cryptocurrency investment is subject to high market risk. Please make your investments cautiously. This is not investment advice, or an endorsement by BitMart as to the intrinsic value of a digital asset, or a commitment by BitMart team to support any specific asset/token that the announcement pertains to.

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