Post
Topic
Board Trading Discussion
Re: Futures leverage trading advice requested
by
cryptocointrade.com
on 06/05/2021, 06:17:03 UTC
Hi there,

I hope I am posting into the right section. I did a few futures leverage trades on Binance never above 4x. I wanted to ask if traders keep a long position open for over weeks and months? If yes are they paying many fees? With which option it is the best to open a position which you may want to keep open for a very long time?

I heard to use the option "post only". But I am not an advanced leverage trader so i would be very thankful for some insights and tips.

If i go with the option isolated then in the case of liquidation only my initial margin will be lost right?

thanks for any help or tips

tred

The simple answer is NO. Leverage trading is for short period of times like hours and days. Maximum weeks.

Why?

You need to understand these concepts to know why

1. The difference between isolated margin and cross margin
2. The volatility decay
3. The fees charged to keep the leveraged position (Margin interest fees)
4. Settlement interval