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.