Bitmex.com is the largest crypto exchange that lets you trade with leverage. It became very popular lately and I decided to actually try it and make a quick review:
As you can see on Coinmarketcap its the second place volume wise. Well, thats because of the leverage:)
So what does it means?
Its not a regular exchange were you exchange pairs like btc-eth or usdt-btc.
You deposit your bitcoin or any one of this:
and then you need to do a intelligent bet which way it will go. If you make a "long" you are betting the price will go up. If you make a "short" you are betting that the price will go down. This is like any regular exchange but the different here is that they let you trade with leverage, which means they will actually lend you money 'till 100X ! to your intial position.
If for example you decide to take a long position on 100$ worth of btc with a 100X leverage , your position will actually be worth 10,000$ ! more then a bitcoin! amazing right? well , here's the catch..
There's a liquidation price. This is the price that if the currency that you've decides to take a position in will reach, you will lose all the money on that position. The more leverage you take the closest the liquidation price will be to the price you entered to that position.
for example:
This is a "long" position I took with 0.0084 btc with a 50% leverage so its actually worth 0.3931 btc .
My entry price was 7002$ and my liquidation price is only 6899.5$ which means if btc will go down below this price I will lose that 0.0084 btc.
The thing is , is that you can actually decide to get out of a loosing position before you've reached the liquidation price and take the loss which is shown in the "unrealized pnl" tab.
on the contrary, if the price will get higher you will benefit from the increased leverage ROI so for example : A 5% rise in btc price from your entry price with a 100$ worth btc and 50X leverage (5000$) will give you a ROI of 250$ .
not bad for a 100$ investment :)
You need to remember that this site is very much like a gambling site so you need to treat it as such and only gamble what you can allow yourself to lose. The difference here is that you can make an intelligent risk if you think you know which way a certain market will go and you really dont have to use those risky 100X or 50X leverages . you can do a 2X, 5X 10 X as well which are much more safe and reccomended (Then the liquidation price will be much further from your entry price of course)
This is not a financial advice only my opinion, do your own due diligences if you decide to invest
Cryptodad
Are you trust them?
this first thing to check in those sites is if they give you the money when you try to withdraw it
yeah, believe me, its not the problem here. more poeple get liquidated then poeple who take profit. you have alot more to lose then to win like in gambling but like i said its more of a calculated risk.
Cool now i just need to get some good upvote in Steemit so i will be able to trade there
i checked it out and it's look like real cool site
Basically your original $100 is what your betting with.
If your position loses $100 in value you lose everything.
A very powerful way to trade tho if you get it right!