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  • Volume(24h): $229.4138B -23.09%
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  • Market Cap: $2.3817T 8.45%
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how to leverage trade on bybit

Bybit's leverage trading functionality allows traders to increase their position size and potential returns, but also amplifies risks, necessitating careful considerations and risk management strategies.

Nov 01, 2024 at 09:51 pm

How to Leverage Trading on Bybit1. Understand Leverage
  • Leverage is a tool that allows traders to borrow capital from the exchange to increase their trading position.
  • It can magnify both profits and losses, so it's important to use it wisely.
2. Choose a Leverage Level
  • Bybit offers leverage levels from 1x to 100x.
  • For beginners, it's recommended to start with a low leverage level (e.g., 2-5x).
  • Higher leverage levels increase the risk but also the potential for higher profits.
3. Select a Trading Pair
  • Leverage trading is only available for certain trading pairs on Bybit.
  • Choose a pair that you're familiar with and that has significant trading volume.
4. Open a leveraged position
  • Once you've selected a trading pair and leverage level, you can create a leveraged position.
  • Enter the amount you want to trade and the leverage you want to apply.
  • The exchange will then calculate the margin required to cover potential losses.
5. Monitor Your Position
  • Regularly check your leveraged positions to manage your risk.
  • Set stop-loss and take-profit orders to protect your capital.
6. Close your position
  • When you're ready to close your position, simply enter the amount you want to sell at the current market price.
  • The exchange will calculate and return your profit (or loss), minus any interest or fees.
Example:
  • If you have a balance of 100 USDT and apply a leverage of 5x, you can trade with a position size of 500 USDT.
  • If the price of BTC increases by 10%, your profit would be 50 USDT (500 USDT x 0.1).
  • However, if the price decreases by 10%, your loss would also be 50 USDT.
Tips:
  • Always do thorough research before trading with leverage.
  • Use leverage only within your risk tolerance and financial capabilities.
  • Never risk more than you can afford to lose.
  • Monitor your positions closely and adjust them as needed.
  • Consider using a trailing stop-loss order to limit losses and protect your profits.

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