LEVERAGE DOES NOT CREATE AN EDGE
Leverage changes your exposure. It does not improve your prediction.
A small adverse move can have a large effect on the margin behind a leveraged position. Higher leverage usually means a smaller buffer before liquidation.
On Binance Futures, liquidation calculations use mark price, not simply the last traded price. Maintenance margin requirements and position size also matter.
Know whether your collateral is isolated or shared through cross margin. Check the estimated liquidation level, margin requirements and contract terms before opening a position.
Which part of leverage did you wish you understood earlier?
#CryptoEducation #Leverage #RiskManagement #Futures
Leverage changes your exposure. It does not improve your prediction.
A small adverse move can have a large effect on the margin behind a leveraged position. Higher leverage usually means a smaller buffer before liquidation.
On Binance Futures, liquidation calculations use mark price, not simply the last traded price. Maintenance margin requirements and position size also matter.
Know whether your collateral is isolated or shared through cross margin. Check the estimated liquidation level, margin requirements and contract terms before opening a position.
Which part of leverage did you wish you understood earlier?
#CryptoEducation #Leverage #RiskManagement #Futures