Question about margin trading and liquidation


Cryptocoins Exchanges / Binance 19 Views

Let's say you've got 100okay margin and use 3x leverage for a complete position of 300okay. You buy coin A at $100 a coin. Coin A drops 25%, going to $75/coin earlier than hitting your stop-loss, so you're down 75% (or 75Okay) in your preliminary margin. After hitting all-time low at $50/coin, coin A starts to maneuver to the upside, and also you determine to buy back in at $75/coin before the investment goes back to its unique $100/coin purchase worth.

In this state of affairs, since you utilized the stop-loss, you retain control of 225Okay (25okay preliminary margin plus 200okay leverage). Because you purchased back in at $75/coin and coin A returned to $100/share, you're on the breakeven level - no achieve or loss.

Is that this right? Or am I missing one thing right here?

submitted by /u/Ok-Limes-5094
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