"Just hold long enough and your leveraged positions will eventually recover."
I wish this was true, I really do. But it's not. This isn't your spot bag of ADA or DOGE you can forget about for a year. With leveraged futures, there's a point of no return: your liquidation price. If you open a 20x long on SOL and SOL drops just 5%, your entire initial margin is wiped out. Gone. The exchange closes your position automatically. There's nothing left to "hold."
What recovers is your *spot* holdings if the asset bounces. Leveraged positions often get liquidated way before any "recovery" can even start eating into your initial capital.
So, are you truly "holding" or are you just playing a game of chicken with the market and your liquidation price?
#LeverageTrading #CryptoMistakes #FuturesTrading #Liquidation #BinanceSquare
I wish this was true, I really do. But it's not. This isn't your spot bag of ADA or DOGE you can forget about for a year. With leveraged futures, there's a point of no return: your liquidation price. If you open a 20x long on SOL and SOL drops just 5%, your entire initial margin is wiped out. Gone. The exchange closes your position automatically. There's nothing left to "hold."
What recovers is your *spot* holdings if the asset bounces. Leveraged positions often get liquidated way before any "recovery" can even start eating into your initial capital.
So, are you truly "holding" or are you just playing a game of chicken with the market and your liquidation price?
#LeverageTrading #CryptoMistakes #FuturesTrading #Liquidation #BinanceSquare