How to operate ProBit Global leverage

ProBit Global's leverage trading enables traders to amplify potential profits but also magnifies risks, requiring a thorough understanding of leverage levels and risk management strategies.

Nov 30, 2024 at 06:33 am

How to Operate ProBit Global Leverage

Introduction

ProBit Global, a renowned cryptocurrency exchange, offers users the ability to trade with leverage. Leverage enables traders to amplify their potential profits, but it simultaneously magnifies the risks involved. To navigate the complexities of leveraged trading on ProBit Global effectively, a thorough understanding of the process is crucial.

Understanding Leverage

• Leverage refers to the practice of borrowing funds from a broker to increase the size of a trade.
• It allows traders to control a larger position with limited capital, potentially amplifying profits.
• However, leverage also magnifies potential losses, as the borrowed funds can swiftly erode capital if the trade moves against the trader.

Leverage Levels on ProBit Global

• ProBit Global offers leverage levels ranging from 1x (no leverage) to 100x.
• The available leverage levels vary depending on the trading pair and the user's risk appetite.
• Higher leverage levels provide greater potential for profits, but they also amplify the risks involved.

Trading with Leverage on ProBit Global

Step 1: Enable Leverage Trading

• Log in to your ProBit Global account and navigate to the "Futures" tab.
• Select the "Leverage" option and adjust the desired leverage level.
• Confirm your selection by clicking the "Enable Leverage" button.

Step 2: Place a Trade

• Choose the trading pair you wish to trade and enter your desired position size.
• The platform will automatically calculate the total margin required based on the leverage level and the trade size.
• Enter the price at which you want to enter the trade and click the "Buy" or "Sell" button.

Step 3: Monitor Your Position

• Once the trade is executed, you can monitor its performance in the "Open Positions" tab.

• Pay attention to the following key metrics:

  • Unrealized PnL: The estimated profit or loss on the open position.
  • Margin Balance: The amount of collateral available to support the leveraged position.
  • Liquidation Price: The price at which your position will be automatically closed to prevent further losses.

Step 4: Manage Your Risk

• Leverage trading involves significant risk, and it is crucial to manage your risk effectively.

• Consider the following risk management strategies:

  • Stop-loss orders: Protect your profits or minimize losses by setting stop-loss levels.
  • Position sizing: Trade with a position size that you can afford to lose.
  • Risk-reward ratio: Only enter trades with a favorable risk-reward ratio.

Step 5: Close Your Position

• Once you have reached your profit target or if the trade is moving against you, it is important to close your position promptly.
• To do so, simply click the "Close" button in the "Open Positions" tab.
• The platform will automatically calculate the realized profit or loss and update your account balance.

Remember:

• Leverage trading is a powerful tool that can amplify profits, but it also magnifies risks.
• Only trade with leverage if you fully understand the risks involved.
• Always manage your risk effectively and never trade with more than you can afford to lose.