How to Leverage for 5x profits

I lost so much money from leveraging. That being said, i still do it. Sell my kidneys for gains.

>>2159719
where do you do it?

File: file.png (21KB, 372x291px) Image search: [Google]

21KB, 372x291px

>>2159450
>How
Kraken has some guides, you should consult them.

>why
Pic related, I started with ~800€ and opened up new positions as my equity rose (only closed a volume of 5 thus far). I'm at maximum allowance, opening cost around ~10k total. Nice gains so far.


If I'd just bought and held ETH I'd make less than half as much.

>>2159823
Nicely done on the 1500

What was that?

>>2159450
Dont use leverage with cryptocurrencies you fucking cuck.

>>2159838
That one in particular is volume of 30ETH bought in at ~85€. The one under it is a volume of 9 at 84€. I actually mistimed my buys, expecting the moon a couple of days earlier than it happened which almost led to disaster when it dipped down to ~70€ range but luckily I did not go overboard with the leverage and managed to skim bankruptcy by a couple hundred € so I could watch it go green.

I was never in any doubt that it was going to go up, but I was dreading one of those dips that could knock me out otherwise ETH is tends to be stable as fuck and you can't really lose money if you're patient and have enough backing to take a dip because it's only moving up.

>>2159450
Crypto is volatile enough that leverage is a terrible, terrible idea.

Use that shit for Forex or something, not here.

>>2159931
That being said if you got in early on ETH with high margin and just let it sit all these times, you would have made a fortune.

>>2159823

Whats the difference between closing and settling? Please explain.

Also what about leveraging XBT to buy ETH instead of USD/EUR, considering both XBT and ETH price went up.

>>2159823
Kraken's guides are shit. In the video he buys at 3:1, then sells at 1.25:1. What does the even do?

>>2159823
Please respond.

File: 1384718883362.jpg (119KB, 1072x906px) Image search: [Google]

119KB, 1072x906px

>>2159950
>Whats the difference between closing and settling? Please explain.
Never used it but from what I know it's essentially the same thing except that when closing you cash out and when settling you buy at the price you opened your position.

So if you have a volume of 5 ETH opened when it was 10€ and settle when it's at 100€ you end up with 5 ETH and 50€ less in your account as opposed with to closing and cashing out 450€.

Someone correct me if I'm wrong.

>>2159999
Nice digits


Because it doesn't matter, he's just closing his position the actual "leverage" chosen has no meaning, its only so that kraken knows you're closing a leveraged position and not actually selling any coins from your own wallet.

Its because kraken has a shit UI.

>>2160166
>Because it doesn't matter, he's just closing his position the actual "leverage" chosen has no meaning, its only so that kraken knows you're closing a leveraged position and not actually selling any coins from your own wallet.
So how does it affect profits?
if you buy at 3:1, and sell at 3:1, do you make a different profit from selling at 1:25?

If you buy at a lower ratio and sell at a higher ratio, what even happens?

>>2159950
Settle means your position closes when the price drops to its opening cost.
You break even essentially.

>>2160166
Still dont understand lol.

How can I end up less (50EUR) if I already spent it on other trades?

This is the devs explanation btw:
"Suppose you used a leveraged buy order to go long 1 BTC @$1000. Now you exit the position @$1200. If you use the "close" option, you will end up with a $200 increase in your USD balance and no increase in your BTC balance compared to your balance before you opened the position. If you instead use the "settle" option, you will end up with a $1000 USD decrease and a 1 BTC increase in your balances. With the settle option you still effectively have a $200 USD profit, because you have effectively purchased 1 BTC at a price of $1000 USD but that coin is currently worth $1200. If BTC price continues to rise after you exit the position, then you are better off holding the BTC. But if BTC price declines after you exit the position, then you are better off locking in the profit in USD. So the choice depends on how you think the market will go or whether you want continued exposure in BTC or in USD after exiting the position. I hope this helps clear things up.

As for the volume percentages, if I'm correct in assuming what you are talking about, that governs how much of your net positions you want to close. So if you are net long 10 BTC, 50% will close 5 BTC of the positions, 100% will close all of the positions, and 200% will close all of the long positions AND open a 10 BTC short (so you are closing the long and flipping to the short side in one trade). Be careful about using this tool though. Double-check that it is doing what you want, because I don't think it handles all situations correctly, especially if you have margin positions going in more than one currency pair. "

>>2160227

They price is not dropping, what the hell are you talking about. Both XBT and ETH went up.

Bump for answers

>>2160205
No, there is no difference.

There's a FIFO rule (First in First out) meaning that when you close your positions you have to close your oldest ones first, the one which you first opened and since you can't have a long and short positions opened at the same time it doesn't matter, he's just clicking the leverage button so that the program, code, webpage, whatever, knows that you are closing a leverage position and NOT actually buying and selling coins you may own in your wallet.


>>2160231
>How can I end up less (50EUR) if I already spent it on other trades?
You really can't, when you did, your position was liquified automatically as you no longer had anything to leverage and cover your position


You're not getting free money to play with, you're getting an advance from the exchange which is covered by funds on your account and once you can no longer cover the loss your position (may or may not end up in) or you otherwise tied your funds it is automatically closed (with a loss or profit)

I'll try to put it more simply
You open a long position on ETH when it was 10€, you only had 10€, you used leverage and bought 5ETH (50€ opening cost)
Now you have an open position and notice there's still 10€ on your account. You didn't actually spend any money yet (aside the fees).
Now let's say that instead of ETH being the second coming of Jesus it dips to 8€.
You had 5 ETH worth 50€ that are now worth only 40€
Your position is automatically closed, the exchange takes your 10€ to cover the loss and you end up with nothing.

When the opposite happens and it moons to 1000€ your 5ETH are now worth 5000€. When you close your position you get 5000€ minus the opening cost of 50€ bringing you to a total of 4950€ profit.

If, instead of closing, I settle, it means I get the 5ETH at the price I first opened my position, instead of getting 4950€, I get 5ETH at 50€ that are taken from my account (assuming I have more than 10€ now) even though that 5ETH are wroth 5000€ now.

>>2160560
also bumping. Important info in this thread