I'd say im a pretty active trader. or atleast I like to think I larp as one.
but 20x leverage is dangerous grounds, famzy. even the best traders in the space won't go anywhere over 5-6x so they're able to effectively manage their risk
For example at 5% margin ratio, depending on where you're trading and what maintenance margin you need, you can get liquidated on 1% moves
as many of the insolvent funds (both crypto and trad) demonstrated with leverage over the past 2 yrs -
the higher you go, the harder you fall
some may say if youre trading <2% of port including dca its not that risky
but the higher leverage you use, the less room you get with your s/l
idk, so long as you keep your risk appetite modest and aren't going overboard then leverage can be a good tool
You're liquidated based on your margin ratio
If margin ratio < maintenance margin = liq
You want to always avoid getting liquidated, because you a) pay penalty + fees and b) you lose your collateral
if I put in 1% of my port into my trade acc and leverage it 50x, I'm essentially throwing away 1% of my port for no reason
It's far less riskier to take 10% of your port and leverage it 5x
not saying to do the latter (but from a risk perspective)
