RE: RE: Using Leverage Correctly
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RE: Using Leverage Correctly

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3y

I read it, I always read. I just gave my opinion and don't necessarily agree with you on that because with leverage you are adding in counter party risk, where when I am trading spot, it's me and the market that I am trading, only counter party risk is the DEX itself. When you are using leverage on a centralized exchange, you are using the exchanges money. When using leverage I only use a very small amount of my account in a trade. I use a bigger amount on a spot trade, but I am cool holding the assets I am trading for a bit if I need to. When I was leverage trading, it was mostly on crap coins that I wouldn't want to hold for any length of time so it was a small position with a short stop loss because those were the ones I would catch bigger scalps on. If you don't have much money to trade with, you will get eaten up in exchange fees when playing high leverage and need to take that into account when figuring out your P/L on the trade.

EDIT: I missed the part on my first read where you were talking about trading from cold storage... Here's the thing, if you are trading on a DEX, you don't have the issues you are talking about being at the mercy of the exchange. You have the funds in your wallet. Now you have to use a wrapped version of BTC for this, and that is where you can put part of your stack into a protocol like AAVE using WBTC and trading there using collateralized leverage.

@thelogicaldude: I read it, I | Ecency