Long leverage means you can open a 2*x Long position on the top crypto, the performance of which is double* the underlying crypto asset. While short leverage means the performance of your position is the inverse of the underlying crypto asset.
What are leveraged long positions?
Leveraged Position Investors can borrow cash in many markets to buy securities to maintain long (leveraged) positions. The borrowed (margin loan) amount allows you to trade large positions without having the total amount of funds required.
What does 20x leverage mean?
With 20x leverage in crypto, you can get up to 20 times your initial margin deposit. For example, if you deposit $1,000 in a crypto account, you could access a leveraged position of up to $20,000.
Is leverage trading crypto legal in the US?
Margin trading allows you to trade more funds than you own by borrowing a traditional or a crypto asset from your broker. Crypto leverage trading is legal in the US, but regulation varies from state to state.
What happens if you lose a trade with leverage?
Leveraged Forex trading involves borrowing money to increase the potential return on investment. If you lose a trade in a leveraged Forex trading account, you could potentially lose more money than you initially invested. This is because leverage magnifies both gains and losses.
What does going short in crypto mean?
Bitcoin shorting is the act of selling the cryptocurrency in the hope that it falls in value and you can buy it back at a lower price. Traders can then profit from the difference in market price.