How to increase leverage on BitFlyer

How to Increase Leverage on BitFlyer

BitFlyer is a popular cryptocurrency exchange that offers a variety of features, including margin trading. Margin trading allows you to borrow funds from the exchange to increase your potential profits. However, it is important to use leverage wisely, as it can also increase your potential losses.

Here is a step-by-step guide on how to increase leverage on BitFlyer:

1. Verify Your Account

Before you can use margin trading on BitFlyer, you need to verify your account. This involves providing the exchange with your personal information and documentation, such as a government-issued ID. You can verify your account by clicking on the "Account" tab and then selecting "Verification."

2. Enable Margin Trading

Once your account is verified, you can enable margin trading. To do this, click on the "Margin" tab and then select "Enable Margin Trading." You will need to agree to the terms and conditions before you can proceed.

3. Select a Trading Pair

After you have enabled margin trading, you need to select a trading pair. A trading pair is a pair of cryptocurrencies that you can trade against each other. For example, you could trade BTC/JPY or ETH/USD.

4. Set Your Leverage

Once you have selected a trading pair, you can set your leverage. Leverage is a multiplier that determines how much money you can borrow from the exchange. For example, if you set your leverage to 2x, you can borrow up to twice your account balance.

5. Place Your Order

Once you have set your leverage, you can place your order. To do this, click on the "Buy" or "Sell" button and then enter the amount of cryptocurrency you want to trade. You can also use the "Advanced" tab to set additional order options, such as stop-loss orders.

6. Manage Your Risk

It is important to manage your risk when trading with leverage. This means setting stop-loss orders to limit your potential losses and monitoring your account balance closely to ensure that you do not exceed your margin call threshold.

7. Close Your Position

Once you have achieved your profit target or you want to close your position, you can do so by clicking on the "Close" button. You will need to repay any borrowed funds plus interest before you can close your position.

Benefits of Increasing Leverage

• Increased profits: Leverage can help you to increase your potential profits. For example, if you trade with 2x leverage and the price of the cryptocurrency you are trading increases by 10%, you will make a 20% profit.
• Greater flexibility: Leverage gives you greater flexibility in your trading. For example, you can use leverage to hedge your positions or to take advantage of arbitrage opportunities.

Risks of Increasing Leverage

• Increased losses: Leverage can also increase your potential losses. For example, if you trade with 2x leverage and the price of the cryptocurrency you are trading decreases by 10%, you will lose 20% of your account balance.
• Margin calls: If the price of the cryptocurrency you are trading moves against you, you may receive a margin call. A margin call is a demand from the exchange to repay some of your borrowed funds. If you cannot repay the borrowed funds, the exchange will liquidate your position.