What is the Difference Between Maximum Bitcoin Trading Leverage & Used Bitcoin Leverage?

You should not that there is a difference between maximum bitcoin cryptocurrency trading leverage ( bitcoin trading leverage given by your broker which is the highest cryptocurrency leverage you as a trader can trade with if you select to) & used bitcoin trading leverage ( bitcoin trading leverage depending on the lots you have opened/open trade positions). One is the broker's (Max) and the other is trader's (Used). To explain this particular concept we will use the example above:

If your crypto broker has given you 100:1 Max cryptocurrency leverage, but you only open lots of $100,000 then Used bitcoin trading leverage is:

100,000 : $10,000 (your money)

10:1 Used Bitcoin Trading Leverage

You've used 10:1 cryptocurrency leverage, but your maximum cryptocurrency leverage is still 100:1. This means that even if you're given 100:1 Maximum btcusd leverage or 200:1 Max leverage, you don't have to use all of it. It's best to keep your used btcusd leverage to a maximum of 10:1 but you'll still select 100:1 maximum leverage ratio for your bitcoin trading account. The extra leverage will give you what we call Free BTCUSD Margin, As long as you have Free margin on your trading account then your trades will not get closed out by your crypto broker because the margin requirement will remain above the required level.

When it comes to trading bitcoin trading one of your bitcoin trading rules: bitcoin equity management rules on your btcusd trade plan should be to use leverage ratio below 5:1.

Bitcoin Leverage Example

The example illustrated below, the set leverage is 100:1, the margin which is 1 % is $2683.07, therefore the overall total amount controlled by the trader is: $268,307 - this is because with this leverage the trader has used little of his money & borrowed the rest of the amount, with this set at 100:1, the online trader is using 1 percent of their trading capital, this 1% is equal to $2683.07, if 1% is equivalent to $2683.07 dollars then 100% is $268,307

What's the Difference Between Maximum Bitcoin Leverage & Used Bitcoin Leverage?

What is the Difference Between Maximum Crypto Leverage and Used Crypto Leverage?

In the above screenshot example, the trader is using $2683.07 dollars, total controlled sum is $268,307 dollars, but trading equity is $16,116.55, therefore used btcusd leverage is ( $268,307 divided by 16,116.55 ) = 16.64 : 1

16.64 : 1

In the bitcoin account above even though the maximum bitcoin crypto trading leverage set bitcoin trade leverage is 100:1, Used bitcoin leverage is 16.64 : 1

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What is the Difference Between Maximum Bitcoin Trading Leverage & Used Bitcoin Leverage?

Bitcoin Leverage Example