Hey folks,
Did you know that the more you invest, the more returns you can make? Yes, that’s right. And that is enough of a reason for us to bring you:
4X Margin Leverage
What changes
Earlier, you could only borrow the same amount that you hold in your net worth and trade with 2X leverage. For example — if you held 1 BTC of net worth, you could borrow only 1 BTC more, and have a total of 2 BTC to trade i.e 2X leverage.
Now, you can borrow up to three times of your net worth on Bitbns and make more profit than ever by trading with 4X leverage. For instance — if you hold 1 BTC of net worth, you can borrow 3 BTC more and trade with a total of 4 BTC i.e 4X leverage
So, 200% more from earlier margin borrow allowed. So effectively you can borrow 300% of your current worth.
Let’s Understand with Example
Suppose you hold INR 100,000 worth of cryptocurrency and INR on Bitbns then with 4X leverage you can borrow upto INR 300,000 worth of cryptocurrency on margin. Which will make total INR 400,000 worth of leverage to trade and book more profit.
It’s that simple!
Avail 4X leverage and amplify your gains, today!
Let’s try to understand the 4X leverage with current market condition
Good times are back! BTC is on an upward run and has gained more than 35% in the last 7 days. Yesterday, it finally crossed the $8,000 mark. You know what this means!
Most altcoins are also on the rise, which translates to huge opportunities in the market. A classic live example is Ripple that has gained more than 20% in the last 24 hours.
The market is on fire and this is your moment. Use the New “3X Leverage” in our Margin Trading feature to boost your profits more than ever, no matter which direction the market moves.
Here are a few examples on how you can trade in this type of market.
Long Position — when the market is moving up
- Let us say your net worth on Bitbns is 5,00,000 INR, which consists of INR and cryptocurrency.
- Assume the price of USDT is 70 INR. Then your net worth in terms of USDT is 7142 USDT approx.
- Borrow 21,426 USDT (3 x 7,142 USDT) on margin with 3X Leverage.
- Buy 3 BTC with 21,426 USDT using the BTC/USDT trade pair. ( at 7142 / BTC)
- Now when the market price of BTC rises to 8571.33333, you sell 3 BTC to get 25,714 USDT.
- Settle the margin by returning 21,426 USDT.
- USDT left = (25,714 USDT — 21,426 USDT) = 4288 USDT.
- 4288 USDT is your profit. Sell 4288@ 70 INR to get 3,00,160 INR of profit.
Always remember, when you take a long position, what you are borrowing is in the denominator of the trade pair. Long position effectively means that you are assuming the price of a particular coin would rise and you are buying it. Margin leverage enables you to do it at multiple times of your current worth so you can profit that many more times.
For example — in “BTC / USDT”, USDT is the denominator.
So, you would borrow USDT and then trade in BTC / USDT markets with leverage or sell the USDT that was borrowed. The additional INR that you received can be used to buy more BTC.
Short Position — when the market is falling
- Let us say your net worth on Bitbns is 5,00,000 INR, which consists of INR and cryptocurrency.
- Assume the price of USDT is 70 INR. 1BTC = 7142 USDT
- Borrow 3 BTC (1 x 3 BTC) using 3X Leverage.
- Sell 3 BTC at the market price of 7142 USDT to get 21,426 USDT.
- Now the BTC price falls to 5714 USDT. Buy back 3.75 BTC with 21,426 USDT.
- Return the margin of 3 BTC.
- BTC left with you is (~3.75 BTC — 3 BTC) = 0.75 BTC.
- Your profit is 0.75 BTC.
Always remember, when you take a short position, what you are borrowing is in the numerator of the trade pair.
For example — in “BTC / USDT”, BTC is the numerator.
So, you would borrow BTC or any crypto and then trade in BTC / USDT markets with leverage or sell the BTC that was borrowed. And when the market falls, you buy it back.
*Calculations are in approximation with negligible deviation from accurate values.
Now that you know the secret, start trading before the market goes cold.
Wish you the best of trading!
Warm Regards
Team Bitbns
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