bitcoin leverage calculator

is the #1 Place in the world to trade bitcoin derivatives.OKCoin has the most trade volume, liquidity, leverage, and settlement dates.You can trade bitcoin and litecoin futures with up to 20x leverage.OKCoin does not accept customers who signup or log in with a United States IP Address: NordVPNThe way OKCoin works is simple, just buy or sell bitcoin contracts.One bitcoin contract is worth $100 in Bitcoin so with 10x leverage you need $10 worth of bitcoin in your account as collateral for each contract you want to trade.If you think bitcoin price will rise, open a ‘Long’ position.If you think price will go down, open a ‘Short’ position.Use the bitcoin futures calculator to estimate your profit/loss for trades before you execute them.The bitcoin price is currently $400 USD and I think it will go up to $450.If I deposit 1 bitcoin as collateral, I can trade with up to $8000.With that $8000 I can ‘Long’ 80 Bitcoin Futures Contracts, the equivalent to 20 Bitcoins at $400.If price goes up to $450 my contracts are worth $9000.

My target is hit so I sell them.The $8000 that I borrowed is returned and I keep the $1000 difference, which is paid out in Bitcoin.By trading that move I risked 1 Bitcoin and made a profit of 2.22 Bitcoins.Alternatively, if the price goes down I have to be able to cover the losses and repay my loan.To ensure the safety of their lenders, OKCoin force liquidates your position once it reaches a P/L of -80%.If the price drops down to $384.62 my long would be liquidated and my 1 Bitcoin of collateral will be used to repay the lenders.You can use the OKCoin Futures Calculator to manage your risks and setup a stop loss trigger order.OKCoin Futures Settlement is when all trades are closed.You can close your trade at profit or loss anytime before the settlement date, if you don’t it will be automatically closed for you at market price.OKCoin has three different bitcoin futures markets, with weekly, biweekly, & quarterly settlement dates.OKCoin futures contracts settle every Friday @ 8am UTCYou can withdraw bitcoin trade profits once you close your trade and the next Friday morning settlement occurs.

easy Bitcoin Trading Calculator No fuss, no mess, calculate those Bitcoin trading profits!...or losses :( % $ $ Buying: @ $ Selling at: $ $ I want to calculate: I am: Android App easy Bitcoin Trading Calculator is now available as an Android App!Includes all the features of this site wrapped up in an easy to use app.Bitcoin Trading Calculator Profit Threshold calculates the point at which your trade will begin to make a profit after trading fees have been taken into consideration.If you have bought bitcoins (going long) the threshold will be the point that selling all your bitcoins will give you a profit in fiat (USD).If you have sold bitcoins (shorting) the threshold will be the point where buying bitcoins will give you more bitcoins then you started the trade with.Profits or Losses calculates the amount of profit or loss the pair of trades will make you.It gives you a fiat figure (USD) if you are going long and a bitcoin figure if you are shorting.

USD ($) is only used for illustration, obviously the calculator will work with any currency just be consistant with what you enter.Please note that the easy Bitcoin Trading Calculator is to be used for guidance only.It is only accurate to 8 significant figures.Remember folks - Buy low and Sell high.After earning the title of the worst investment of the year 2014, Bitcoin Trading may not need any further introduction when it comes to potential risks and losses.
uk litecoin miningHowever at the same time, the market has been a haven for disciplined day traders that normally end up earning a greater returns within a shorter period of time.
bitcoin tschechienOne of the most attractive things about Bitcoin trading is the ability to use leverage.
litecoin euro marketIt gives traders an option to trade larger amounts even with small capital.
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In this context, the Bitcoin trading sector functions much like its experienced counterpart, the forex trading sector that also offers similar options to its traders.For instance, a 50:1 forex leverage represents the ability of trader to place trades 50 times more than their actual capital.Similarly in, Bitcoin trading market, liquidity providers lets users open leveraged positions by providing their funds.
buy litecoin with interacThese leverage ratios however are much lesser than those of forex, because of Bitcoin’s sustained high volatility.
bitcoin bank vancouverThe maximum leverage we personally have came across is 50:1, provided by the Bitcoin exchange 796 and AvaTrade.While it is true that high leverage yields high returns, the same is applicable in the case of losses as well.For instance, if you hold the capital worth $1 and borrow $50 leverage to trade on the Bitcoin market, with 1 pip being 1/100 of a penny, then a move towards favorable upside price direction, say for 100 pips, would yield the profit of $1, or 0.1 percent.

So if you would trade, say a larger amount like $50,000 on your original capital $1,000, you would end up making a whopping $5,000 return.But in case the price action ditches your predictability, the loss would be as much as the profit.So a leveraged trade worth $50,000, decreased by 100 pips, would cost you $5,000 plus interests, therefore putting your account balance in negative.The same is applicable when you bet on downside price direction, by calling a short position.However in this case, what you borrow is Bitcoin rather than cash so as to sell them at a peak.Later you buy the same BTC from the downside position for cheap, and return lenders the Bitcoin your originally borrowed while taking away the profits.In case the prediction becomes invalid and the price starts to move north, you become obligatory to buy Bitcoins back at a high to pay your lender with interest.Day Traders are not serious investors, as they say.However, in terms of Bitcoin, investors are not serious day traders.

We have seen how the cryptocurrency’s value has fallen from the overvalued $1,100 to an undervalued point within only a year — more or less.There will be no controversy in saying that many long term investors have got burned due to Bitcoin’s prolonged bearish phase, while many day traders meanwhile have made huge bucks by calling short positions.At the same time, it is important to notice that only those professional traders managed to go home with profits who were limitedly dependent on leveraged trades.Indeed, they were focused more on managing near-term risks rather then fantasying massive returns.To cut a long story short, they understood how Bitcoin volatility could put a dent on their leverage if their prediction goes invalid; and therefore they borrowed less and played only for small gains by setting proper price limits.We will be using a case study to demonstrate the impact of Bitcoin’s high volatility on leveraged trades.Last year, between 14th August to 18th August 2014, the Bitcoin price fell nearly $100 on all the major exchanges — an event that was famously referred as flash crash.

Many experts interpreted the crash to have been caused by margin trading — a kind of leverage system that requires traders to deposit collateral to cover credit risk.Margin Trading critic Raffael Danielli blamed a certain exchange for causing such a drastic drop, saying that: “The fall below 400 was mainly due to a lack of bids in the order book and not because the market believed that the true value was below 400, as the rebound back to over 440 only minutes later basically proved.” This is one of the most accurate cases for explaining a stiff situation for high-leverage trades that could be taking place in a highly manipulative and volatile environment.There were still some who actually managed to avoid losses during such unannounced price movements.As the price crashed down to 400 from 500, many seasonal traders found this opportunity to call long positions on small leverage towards the upside risk 420.They eventually covered up their losses as the price literally bounced back above 420 to test the primary upside risk near 440.