Quote from: lestat2k7 on February 17, 2018, 12:20:42 AM

Hi,

I understand some of the terms but in simple terms how does it work? Basically let's say 1 have 1 BTC and I use 3x leverage, will I be able to trade with 4 BTC?

If so, if I am not wrong, if the total balance goes below 1 BTC, everything will be sold automatically and I lose all. But if I am in profit how much do I get to keep? Are there large fees or percentages taken by the exchange?

I am using poloniex.

So let's say my coin doubled in value after I bought it, so now it's worth 8 BTC (6 BTC if my leverage calculation is wrong), when I sell it, ignoring the trading fee, how much would I keep in profit? Would it be 8 - 3 = 5 BTC?

If so, that would be an amazing gain. I know it's risky but sometimes you see a coin mooning, like BTC and in those cases if you were to buy a lot using margin trading, even after 10% increase wouldn't you end up with a lot of profit?

Thanks in advance.

Hi!
You have to remember, when you trade with leverage, the price can kick off your bid if you will not be right and the price will go against you.