Leverage Trading Crypto Explained. Leverage = 100,000 / 5,000. Leverage is presented in the form of a multiplier that shows how much more than the invested amount a position is.
Leverage = 100,000 / 5,000. Bybit offers users up to 100x in leverage. Kraken currently offers up to 5x leverage.
Lastly, trading on leverage has an associated funding cost in the form of a daily interest rate, which can add up very quickly.
This certainly isn’t for everyone. In leverage trading, you are taking extra risk for the chance of extra reward. Similarly in, bitcoin trading market, liquidity providers lets users open leveraged positions by providing their funds. This strategy is sometimes called ‘ hodl ’ (or hold on for dear fife) in cryptocurrency.
