#CFX Spot Trading is for poor people and Future Trading is for rich people đđ, the best joke I heard till now đ.
People saying the opposite đ. Leverage (a.k.a Loan-Contract-By-Broker) for rich people to multiply their gain with very less money đ°.
For example, suppose I have 500 million to invest. But I invested 5 million in the market and remaining I kept somewhere safe đĄïž. Suppose I placed a long (buy) order on BTC when market was at 70k USD. So I should have 14.29 BTC approximately. But I used 100x leverage, so I have 1429 BTC. Then it went to 71k and technically I suppose to make 1k for each BTC. So, I made more than 1 429 000 in profit with only 5 million. If you get almost 1.5 million with 5 million in a short period,,, itâs not bad right? đ°đ°
Now letâs say, BTC went down to 69.5k, I lost 500$ for each BTC. So I lost 1429*500, that means more than 0.715 million. So I still have something like 4.285 million left. Nothing to worry, right? đ
What if it goes to 63k? Iâm losing 7k for each BTC, which is total 103 million. Now, for most retail traders, you will get margin call a lot earlier and broker / platform will keep closing out all your orders and you may lose all your deposited money or at least 50% (if they close on -50% P/L). đšđž
For institutional traders or professional classified traders like me, broker will call me, âSir, you have negative balance in your account, please deposit 98 million or more.â Then Iâll say, â No worries, Iâm putting 495 million more to increase margin.â Either I can deposit or wait 1 month to get negative balance positive (as BTC price increases), as most brokers gives 1 month time. đŒđŒ
Now, say, is Future / Leveraged Trading for poor people or rich people? đ€
Poor people, letâs say he has only 14k and he will make a order with 100x leverage and eventually lose all his money on Margin Call. (For poor people, itâs not actual call or warning, so I would say Margin Trigger) đžđ
Man! Trade with your money on spot
$WBTC #writw2earnn #USDTCryptoGiftBoxGiveAway #POLYX