How to make money with BigONE leverage

Leverage trading on BigONE involves borrowing funds to increase trading capital, amplifying both potential profits and losses, emphasizing the importance of understanding risk tolerance and trading conservatively.

Nov 27, 2024 at 10:00 pm

Step 1: Understand the Fundamentals of Leverage Trading on BigONE

• Understanding Leverage: Leverage refers to borrowing funds from a broker or exchange to increase your trading capital. This amplifies your potential profits but also magnifies your losses.
• Types of Leverage Trading: BigONE offers various types of leverage trading, including cross-margin leverage and isolated-margin leverage. Cross-margin leverage uses your entire account balance as collateral, while isolated-margin leverage limits collateral to a specific position.
• Risks of Leverage Trading: Leverage trading involves significant risks, including liquidation (losing the initial investment and borrowed funds) if the market moves against your position. Therefore, it's crucial to understand your risk tolerance and trade conservatively.

Step 2: Create a Trading Account on BigONE

• Register on BigONE: Visit the BigONE website and follow the registration process. Provide required personal and contact information.
• Complete KYC Verification: To enhance security and comply with regulations, BigONE requires users to undergo KYC verification. This involves providing identification documents and confirming your residency.
• Enable Leverage Trading: Once your account is verified, navigate to the "Settings" section and enable leverage trading. You may need to agree to additional terms and conditions.

Step 3: Selecting Trading Pairs and Leverage

• Eligible Trading Pairs: BigONE supports leverage trading on a variety of crypto assets. Visit the "Markets" section to explore available trading pairs.
• Choosing Leverage Level: Leverage is expressed as a multiple of your initial investment. For example, 5x leverage means your trading capital is five times your initial deposit. Carefully consider your risk tolerance and select an appropriate leverage level.
• Applying Leverage: Once you have selected a trading pair and leverage level, navigate to the "Leverage Trading" tab within the trading interface. Enter the desired leverage amount and confirm your selection.

Step 4: Placing and Managing Orders with Leverage

• Types of Orders: BigONE allows you to place various order types, including market orders (executed immediately at market price) and limit orders (executed at a specific price).
• Calculating Profit and Loss: Your profit or loss is determined by the change in the underlying asset's price multiplied by the leverage ratio. It's crucial to monitor your positions closely and adjust the leverage accordingly.
• Adjusting Leverage: BigONE allows you to adjust the leverage ratio of open positions as market conditions change. However, increasing leverage mid-trade can amplify losses substantially.

Step 5: Monitoring and Closing Positions

• Position Monitoring: Regularly monitor the performance of your leverage positions. Pay attention to market fluctuations, risk indicators, and liquidation levels.
• Profit-Taking and Loss Mitigation: Determine clear profit-taking and loss-mitigation strategies to minimize downside risk. Close positions when desired target profits are reached or when losses exceed pre-determined limits.
• Closing Positions: To close a leverage position, simply place a counter-order of the same size and direction as the original order. The position will be closed and the funds settled.