BingX Leverage Tutorial

Leveraging on BingX allows traders to magnify their potential earnings but should be used cautiously, as it can also amplify losses.

Nov 23, 2024 at 09:40 pm

Step 1: Understanding Leverage

• Leverage is an advanced trading technique that allows traders to multiply their market exposure and potential profits.
• On BingX, leverage can be used to amplify trading positions by a factor of 1:1 to 125:1.
• It is important to note that leverage is a double-edged sword: while it can magnify profits, it can also lead to significant losses if not used wisely.

Step 2: Choosing Leverage Level

• The appropriate leverage level depends on the trader's risk tolerance and trading strategy.
• Conservative traders may prefer lower leverage levels (e.g., 1:10 or 1:20), while more aggressive traders may find higher leverage levels (e.g., 1:50 or 1:100) more suitable.
• It is recommended to start with a low leverage level and gradually increase it as experience and knowledge grow.

Step 3: Opening a Leveraged Position

• To open a leveraged position on BingX, select the desired trading pair and enter the order details.
• Under the "Leverage" section, specify the desired leverage level.
• Enter the trade size and click Buy or Sell to execute the trade.

Step 4: Managing Risk

• Risk management is crucial when trading with leverage.
• Use stop-loss orders to limit potential losses in case of unfavorable market movements.
• Monitor position size and leverage level to ensure they align with risk tolerance.
• Avoid overleveraging, which can significantly increase the chances of liquidations.

Step 5: Calculating Potential Profits and Losses

• Potential profits are calculated as the difference between the entry price and the exit price multiplied by the contract size and leverage level.
• Potential losses are calculated similarly, but the difference between the exit price and the entry price is used.
• It is important to understand that potential losses can exceed initial capital in case of adverse market conditions.

Step 6: Closing a Leveraged Position

• To close a leveraged position, navigate to the "Positions" tab.
• Select the desired position and click "Close Position."
• Confirm the details and click "Close" to execute the order.