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
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
I know traders that have a core long position on which they keep adding or subtracting. It's all a matter of strategy. You can view it as an apple tree. You plant the seeds at certain price levels and then let them grow. As you advance you can cut some fruits or plant more seeds.
Personally I like this analogy. Hopefully you do too!The option "post only" is mainly used to avoid slippage and higher fees. Some exchanges even offer rebates when you get your limit orders filled. All professional traders I know use cross margin and stop-losses (be it mental or static/fixed). When you use 2x,3x,4x leverage you are essentially saying "I can't place my own stop-losses so I want your system to do it for me.". Keep in mind that exchanges charge you extra fees when you get liquidated.