Crypto futures explained simply — how not to blow up your account even with 50–100x leverage
We break down crypto futures with no fluff: what leverage, liquidation, funding and margin are, how perps differ from spot, how a beginner can open their first trade on Binance or Bybit — and why 70% blow up their account in the first three months.
Video breakdown: how not to blow up your account on futures
A detailed breakdown of the main mistakes beginner traders make and the three rules that keep your account safe when working with high leverage. Watch it here or open it on YouTube — comments and related videos are available there.
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Video transcript
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Why do most beginners blow up their account on futures within the very first month? It's not the market or the size of the leverage — it's that they enter with too large a size, too large a percentage of their account. The goal of the video is to show how to trade so that liquidation never happens, even at 50x or 100x leverage.
Everything is shown on a Bitcoin futures chart with a multi-trading feature that keeps orders independent of each other. On many exchanges positions are merged and averaged: open two longs or three shorts and you get one averaged position. Here each position stays separate, and that comes in handy for the strategy.
On the terminal you only need to know five things: available balance, entry size, liquidation price, and direction — long or short. A balance of 500 USDT is the maximum you can lose. The entry is set as a percentage of the account: 1% of 500 is 5 dollars, 10% is 50 dollars.
The key discovery: with cross margin, leverage barely affects the liquidation price. Whether 10x, 50x or 200x, the liquidation level doesn't move, because in cross the exchange looks not at the trade's margin but at the entire balance as a safety cushion. With a long, liquidation almost never happens: even if the coin falls to zero you only lose the position size, not your whole account. With a short there's always liquidation (the price can theoretically rise infinitely), but it sits very far away.
Rule: in cross it's not leverage that matters but the position size relative to the account. A small position on a large balance — liquidation is far; a large position on a small balance — it's close. With isolated margin it's the opposite: there, leverage directly brings liquidation closer. To get liquidation close, you need to enter an amount that exceeds the account by about 900%.
Then comes opening the trade and placing the take-profit and stop-loss. The larger the total volume of positions in one direction, the closer liquidation gets: what matters is not the size of the leverage but the sum of all positions relative to the account.
The author's strategy is built on unclosed price-open points: on the daily chart you can see where the price opened, and over time the coin returns to that level. According to the author's analyzer statistics, over a one-year interval such points close roughly 90% of the time (8 out of 10), over two years 94–96%. Take-profits for the long and the short are set against those levels at the same time.
Two opposing trades provide automatic hedging: the liquidation price goes 'into outer space' (millions of dollars), and you can earn on any market move. When the price reaches one take-profit, the position closes, and a new one opens to even out the trade.
Even 4–6% a month on a small account beats the bank rate, and on a large account 2% a month gives a meaningful amount with minimal risk. At the end a calculator is shown: from balance, entry price, leverage and direction it computes the liquidation price, the profit at various percentage moves, and how many trades you can safely open. This material is informational and is not individual investment advice.
Table of contents
- The multi-trading strategy
- What crypto futures are
- Pros and cons of futures
- First trade in 3 steps
- Leverage and the liquidation calculator
- Isolated and cross margin
- Funding — who pays whom
- Futures exchanges
- How to open futures
- Trading on Bitunix
- Risk-management rules
- Glossary of terms
- Readiness test
- Frequently asked questions
- Summary
The multi-trading strategy: long and short at the same time
The main idea of the video breakdown is to open a long and a short on the same pair simultaneously, placing the take-profitTake-profitAn order to automatically close a position when the target profit price is reached. Set before opening the position. on both sides of the current price. With this hedging, the liquidation price flies off into space (millions of dollars in the case of BTC), and you can earn on any move — if the market goes up, the long's take-profit triggers; if it goes down, the short's take-profit does.
The condition under which this scheme works safely is cross marginCross marginThe exchange uses your entire balance as collateral. The liquidation price depends on the position size relative to the account, not on the leverage. mode + the ability to open independent positions in the same direction (multi-trading). On most exchanges two long positions are automatically averaged into one; a feature for keeping trades separate is rarer — for example, on Bitunix.
How it works in practice
- On the daily chart you identify the levels: where the price will move on a rise (the long's target) and on a fall (the short's target). The author of the video uses 'unclosed price-open points' with a statistical return probability of 87–95% over a year.
- You open a small long position (about 10% of the account) with a take-profit at the upper level.
- You immediately open a small short position with a take-profit at the lower level.
- When the price reaches one of the take-profits, the position closes in profit. You open it again — and keep 'pumping' the market in both directions.
Strategy returns
Each successful trade on a 5–10% price move gives 0.5–1% to the account. Over a month, with 3–5 closes, that accumulates to 4–6% — something no bank deposit will give you. The key condition is that the total volume of all open positions must be significantly smaller than the account (10–20% maximum).
Long + short hedging without averaging is possible thanks to the 'multi-trading' feature — which is available on Bitunix. Sign up with the referral code aliev and get a reduced fee and bonuses.
⚡ Open an account on Bitunix (code aliev)The author's referral link. This material is informational and is not investment advice.
What crypto futures are, explained simply
What a futures contract is, in plain terms
A futures contract locks in the price and the date of a future deal on an asset — oil, gold, currency, stocks or cryptocurrency. The buyer agrees to buy and the seller agrees to sell that asset at a price fixed in advance, once the contract's date arrives. The goods themselves usually never change hands: most futures are cash-settled — the exchange simply works out the price difference, crediting the profit to one side and deducting it from the other.
A quick example. A coffee-shop owner worries that beans will get more expensive over the next six months. He signs a futures contract — an agreement to buy a sack of beans in six months at today's price. The supplier likes it too: he knows in advance that he has a sale. If beans rise, the shop wins because it bought cheap; if they fall, it overpays a little — but either way it fixed its costs ahead of time. That is the whole point: a future lets you agree on tomorrow's price today.
Futures serve two jobs: hedging — insuring against a price swing, like the coffee shop above, and speculation — earning on the price movement itself without ever wanting the goods. It is the speculative use that turned futures into a mass-market tool in crypto.
A crypto future is the same thing, applied to cryptocurrency
A crypto future is an exchange contract through which you bet on a cryptocurrency's price going up or down without buying the coin itself. On spot you pay $50,000 for a Bitcoin and own it. On futures you open a contract on that same Bitcoin and simply lock in the profit or loss from its movement — the coin never comes to you.
There are two main differences from spot. The first is leverage: the exchange adds borrowed funds to your collateral, and you control a position 5–100 times larger. The second is the ability to earn on a fall through shorting. Spot is always directed only upward, futures — in both directions.
Perps and quarterly futures — what's the difference
Perpetual futures (perpetual, or simply 'perps') are contracts with no expiry date. They account for about 95% of all crypto futures volume on Binance, Bybit, OKX, BingX and Bitget. The perp price stays near spot thanks to the funding mechanism — a payment that longs and shorts exchange every 8 hours.
Quarterly futures settle on a fixed date, have no funding, and their price can diverge noticeably from spot. For short trades people take perps; for long hedges and arbitrage — quarterly contracts.
Short and long — in simple terms
Long is a bet on a rise: you buy the contract and profit as the price goes up. Short is a bet on a fall: you 'sell on credit', as it were, and profit as the price declines. On futures both directions are equal and are opened with a single button in the contract card. That's the main advantage of futures over spot — you can earn on a falling market too.
Futures or spot — what should a beginner choose
Spot is safer: you buy the coin and own it, and the account can't go to zero because of leverage. The worst case is the coin's price falls and you lock in a loss or wait for a bounce. Futures give more possibilities (leverage, shorts, funding arbitrage) but require discipline: at 50–100x leverage one mistake with position size wipes out the account. The standard recommendation is to practice spot for at least 3–6 months and only then turn on futures.
Pros and cons of trading crypto futures
Futures give you possibilities that don't exist on spot, but the risk is many times higher too. Here are the key points in brief — so you can decide whether this instrument is right for you.
✅ Pros
- Earn in both directions — long on the way up, short on the way down.
- Leverage — control a position 5–100 times bigger than your account.
- High liquidity — enter and exit without slippage on BTC/ETH.
- Low entry barrier — start from $50–200 and a demo account to practice.
- Hedging and arbitrage — offsetting positions and funding to protect your account.
⚠️ Cons
- Liquidation risk — with a large size the position burns up in minutes.
- Funding — holding for a long time eats your account even without price movement.
- Emotions and overtrading — the main reason beginners blow up.
- Complexity — margin, leverage, take-profit and stop require understanding.
- Fees — entry, exit and funding on every trade.
Types of crypto futures — a comparison
| Parameter | Perpetual (perps) | Quarterly |
|---|---|---|
| Expiry date | None | Fixed, once a quarter |
| Funding | Yes, every 8 hours | None |
| Price vs spot | Stays near spot | Can diverge noticeably |
| Share of volume | ~95% | ~5% |
| Best for | Short and medium trades | Hedging, arbitrage, long-term positions |
How to enter your first trade in 3 steps
A universal scheme that works on Binance, Bybit, OKX, BingX and any other exchange. Calculated before opening the position, not 'on the fly'.
Calculate the risk
We take 1–2% of the account — that's the acceptable loss on one trade. On a $1,000 account that's $10–20. The position size depends on this figure; leverage plays no role here.
Determine the stop
We place the stop-loss beyond the nearest significant level — a support or resistance, not on a 'round' number. The stop distance in percent is needed for the next step.
Calculate the size
Position size = acceptable loss ÷ stop distance. Leverage is chosen afterward: it affects only the margin, not the risk. Often 5–10x is enough.
Leverage in crypto — what 50x and 100x mean
Leverage is a multiplier of the position size relative to your collateral. The main trap: 50x leverage doesn't 'multiply your profit by 50'. It multiplies the size of the position you control — and with it the potential loss.
If you open a position on $100 with 50x leverage, you'll control $5,000 — but a price move against you of just 2% is enough to lose all your collateral. At 100x leverage that threshold shrinks to 1%, and a small overnight impulse on BTC easily wipes out the account.
The liquidation formula
The liquidation price is the level at which the position is automatically closed by the exchange because the loss exceeds the collateral. A rough formula for a long:
For a short the sign changes: liquidation price = entry price × (1 + 1 / leverage). The exact figure is shown in the position card after it's opened and depends on the margin type and the size of the liquidation reserve the exchange takes for itself.
Distance to liquidation by leverage
| Leverage | Move to liquidation | What it means |
|---|---|---|
| 5x | ≈ 20% | Room for a large BTC drawdown. Suitable for swing trading. |
| 10x | ≈ 10% | Standard mid-range leverage for day trading. |
| 20x | ≈ 5% | Suitable for short trades with a tight stop. |
| 50x | ≈ 2% | Only for scalping with disciplined risk. |
| 100x | ≈ 1% | High chance of liquidation, often banned by exchanges in Russia. |
Note: the figures are approximate, without accounting for fees, funding and the liquidation reserve. In reality the position closes 0.3–0.7% earlier than this boundary.
How much you can earn or lose with $100 — leverage example
Example on a $100 deposit (isolated margin, full margin in the position). Profit and loss are calculated on the position size, not the margin — so leverage speeds up gains and losses equally.
| Leverage | Position on $100 | +1% | +2% | +5% | Liquidation against you |
|---|---|---|---|---|---|
| 5x | $500 | +$5 | +$10 | +$25 | at −20% |
| 10x | $1 000 | +$10 | +$20 | +$50 | at −10% |
| 20x | $2 000 | +$20 | +$40 | +$100 | at −5% |
| 50x | $5 000 | +$50 | +$100 | +$250 | at −2% |
| 100x | $10 000 | +$100 | +$200 | +$500 | at −1% |
Profit and loss are symmetric: the same move against you gives the same loss — but you can never lose more than your margin ($100 in isolated mode). Conversely, the higher the leverage, the sooner liquidation: at 100x a −1% move already wipes the deposit, so the position never survives down to −5%. Figures exclude fees and funding — a simplified model for illustration.
Liquidation calculator
Enter the position parameters — it will calculate the liquidation price, the distance from the entry point, and the size of the collateral.
This is a simplified model: a real exchange accounts for the Maintenance Margin Rate (~0.5%), fees and funding. Use the exchanges' own calculators (Binance, Bybit) for the exact figure before a trade.
Isolated and cross margin — what should a beginner choose
Margin is the collateral the exchange freezes for an open position. On futures there are two margin modes, and the choice strongly affects the safety of your account.
Isolated margin
- A separate amount is allocated to the position.
- On liquidation, only this allocated collateral is lost.
- The rest of the account stays intact.
- The liquidation price is closer to the entry point.
- Safer for beginners.
Cross margin
- The entire balance is used as collateral for the position.
- The liquidation price is farther away — less chance of it triggering.
- But on liquidation the whole account is lost.
- Convenient for hedging and arbitrage.
- For a beginner — dangerous.
On Binance, Bybit, OKX and BingX the margin mode is chosen in the contract card with a single button and applies only to that pair. The standard recommendation is to start with isolated and switch to cross only after a year of practice, when you understand what you're doing.
Funding — what it is and who pays it
Funding (funding rate) is a payment that longs and shorts exchange every 8 hours on perpetual futures. Its purpose is to keep the perp price near the spot price.
The logic is simple: if the perp trades above spot, there are too many longs, and they're charged a penalty (funding is positive, longs pay shorts). If the perp is below spot, it's the reverse — shorts pay. The money goes not to the exchange but into the pockets of traders on the opposite side.
How funding is calculated
The usual rate is 0.01–0.05% per payment, or roughly 0.03–0.15% per day (three payments). In moments of strong frenzy on alts the rate rises to 0.1–0.3% per time, and a long-held long position at positive funding loses 1% of the account per day just from holding — without any price movement.
Payment times on the major exchanges
| Exchange | Payment times (UTC) | Frequency |
|---|---|---|
| Binance | 00:00, 08:00, 16:00 | every 8 hours |
| Bybit | 00:00, 08:00, 16:00 | every 8 hours |
| OKX | 00:00, 08:00, 16:00 | every 8 hours |
| BingX | 00:00, 08:00, 16:00 | every 8 hours |
If you close the position a minute before the payment, you won't pay or receive funding. If you hold at the moment of settlement, it applies automatically.
Positive and negative funding — who pays whom
The sign of the funding rate shows which way the market is 'skewed' and determines who pays whom:
Positive funding (+)
- The perp trades above spot — there are more longs than shorts.
- Longs pay shorts.
- The typical picture in a bull market.
- A long held in crypto for more than a day loses money 'for nothing'.
- You can earn through delta-neutral arbitrage (short the perp + long spot).
Negative funding (−)
- The perp trades below spot — there are more shorts than longs.
- Shorts pay longs.
- Often at the bottom after a sharp drop — the market is over-shorted.
- A signal of a possible bounce (but not a trading system in itself).
Where to look: in the contract card on Binance/Bybit/OKX there's a 'Funding Rate' line + a timer until the next payment. On Binance there's also a separate 'Funding History' section for each pair.
Crypto futures exchanges — Binance, Bybit, OKX, BingX
The largest venues by perp volume in 2026. The main selection criterion is the liquidity of the pair you need: the deeper the order book, the less slippage and the lower the manipulation risk. To start, take BTCUSDT or ETHUSDT — they have minimal spread and stable funding.
What amount to start with
Technically Binance lets you open a position with 10 dollars — that's enough to test the interface and understand how leverage works. But real trading with a 1–2% risk per trade is possible from 200–500 dollars: otherwise the minimum fee (0.04–0.06% on the taker) eats the profit.
The optimal path is to open a demo account (available on Binance, Bybit, BingX), practice stops and position sizing for at least two weeks, and only then move real money in. On demo all mistakes are free; on a real account they're not.
How to open futures on Binance and Bybit — step by step
The 'Futures' section is disabled by default on both exchanges — you need to activate it before your first trade. This is done once and takes 2–3 minutes.
How to enable futures on Binance
- Log in to your Binance account → 'Derivatives' menu → choose USDⓂ-Futures (these are perps on USDT).
- Click 'Open Account'. The exchange will show a short test (5–6 questions about leverage and liquidation) — without it, it won't activate.
- Transfer USDT from your spot wallet to the futures wallet: 'Wallet' → 'Transfer' → from 'Spot' to 'USDⓂ Futures'.
- In the contract card (for example, BTCUSDT) choose the margin mode (Isolated recommended for a beginner) and leverage (5–10x to start).
- Open a position: the Buy/Long or Sell/Short button, with the size specified in USDT or in coins.
If the 'Open Account' button doesn't appear, check that you've passed KYC verification. Without it, futures on Binance are unavailable.
How to open futures on Bybit
- Log in to Bybit → go to 'Derivatives' → 'USDT Perpetual'.
- Transfer USDT from the Funding wallet to Derivatives: 'Assets' → 'Transfer' → 'Funding → Derivatives'.
- In the contract's right-hand panel, switch Cross/Isolated and choose the leverage.
- Open a Buy/Sell position. Above the buttons you can set TP and SL before opening.
Binance and Bybit fees on futures
| Exchange | Maker (limit) | Taker (market) | Minimum deposit |
|---|---|---|---|
| Binance | 0.02% | 0.04% | from ~10 USDT |
| Bybit | 0.02% | 0.055% | from ~10 USDT |
| OKX | 0.02% | 0.05% | from ~10 USDT |
| BingX | 0.02% | 0.05% | from ~5 USDT |
With high volume (from $50K/month) the fee drops to 0.012% / 0.024% and lower. For each trade account for: entry + exit + potential funding = at least 0.1% of the position size, even without accounting for the price move.
Demo account — where to try without risk
On Binance, Bybit and BingX a demo mode (Testnet or Demo Trading) with virtual USDT is available. The interface fully replicates the real one, and the prices are real, from the exchange. This is the right place to practice your first 50–100 trades: calculate risk, place a stop, lose 'money' with no consequences.
Access: Binance → Futures → profile menu → 'Mock Trading'. Bybit → Derivatives → the 'Demo Trading' toggle in the top right corner.
How to open and trade futures on Bitunix
Bitunix is the exchange from the video breakdown. Its key feature is multi-trading: positions in the same direction aren't averaged together but live separately. That's exactly what the long + short hedging strategy is built on. Here's how to start from scratch.
Get started in 4 steps
- Registration. Open Bitunix with the referral code aliev — it gives a reduced fee and a welcome bonus.
- Verification and deposit. Pass the quick KYC and top up your futures balance in USDT — even a small amount is enough to practice the strategy.
- Cross margin and multi-trading. Choose cross-margin mode and enable separate tracking of trades so positions don't merge.
- First trade. Set a size of 1–2% of your account, place a take-profit at the level, and open a long or short.
⚡ Open an account on Bitunix — code aliev
Bitunix mobile app
You can trade right from your phone: the Bitunix app is available for iOS (App Store) and Android (Google Play), plus a web version in the browser. The interface mirrors the desktop — the same orders, cross margin, multi-trading and liquidation calculation at hand at any moment.
Fees, VIP levels and rebates
The base fee is around 0.02% maker / 0.06% taker. As your trading volume grows, VIP levels with reduced rates open up. Those who place limit orders and add liquidity (market makers, MM) earn maker rebates — part of the fee is returned. The referral code aliev cuts your costs from day one.
Check the exact fee rates, bonus size and VIP terms on the Bitunix website — the exchange changes them according to current promotions. The link is an affiliate link; this material is informational and is not individual investment advice.
Claim a bonus of up to $100 on your first trade
Sign up on Bitunix with the referral code aliev — you'll get the exchange's welcome bonus and a reduced fee. This is the very venue with the 'multi-trading' feature on which the hedging strategy from the video is built.
The size and terms of the bonus are set by the Bitunix exchange according to the current promotion — check the exact amount on the registration page. The link is an affiliate link. Trading futures with leverage carries the risk of losing your account; this material is informational and is not individual investment advice.
The main rules that keep your account safe
Risk 1–2%
The maximum loss per trade is 1–2% of the account. Leverage has no effect on this figure.
Always a stop
An entry without a stop-loss isn't a trade, it's a lottery. The stop is set before opening, not 'when it takes off'.
Don't average down
Adding to a losing position on futures is the shortest path to liquidation. You only add into profit.
Count the funding
When holding longer than 24 hours, funding is significant. At a rate of 0.1% per eight-hour period, that's 0.3% per day.
Don't trade on emotion
After two losses in a row — pause until the end of the day. Tilt after a blowup doubles the next loss.
Isolated margin
For a beginner, the only mode that doesn't wipe out the whole account because of one trade.
A glossary of crypto futures terms
These words appear in every exchange interface — Binance, Bybit, OKX, BingX, Bitget. Keep the tab open during your first trade.
| Term | What it means |
|---|---|
| Perps (perpetual) | A futures contract with no expiry date. The price stays near spot thanks to funding. 95% of crypto futures volume is perps. |
| Long / short | Long is a bet on the price rising, short is a bet on it falling. On futures both directions are equal. |
| Leverage | A multiplier of the position size relative to the collateral. 10x, 50x, 100x are standard values in crypto. |
| Margin | The collateral frozen for a position. It can be isolated (risk only the trade) or cross (risk the whole balance). |
| Liquidation | The forced closing of a position by the exchange when the loss exceeds the margin. After liquidation the collateral is lost. |
| Funding | A payment between longs and shorts every 8 hours. Pulls the perp price toward spot. Usually 0.01–0.05% per time. |
| Stop-loss | An order to automatically close a position at a loss. Protection against a drawn-out blowup. |
| Take-profit | An order to automatically lock in profit when the target price is reached. |
| Tilt | Emotional trading after a loss with an attempt to 'win it back'. The main cause of serial blowups. |
| USDT-M / Coin-M | The futures type: USDT-M — settlement and margin in USDT, Coin-M — in the coin itself (BTC, ETH). Binance has both. |
| Open interest | The total value of open positions on a contract. It indirectly shows the market's interest in a move. |
| Spread | The difference between the best buy price and the best sell price in the order book. On BTCUSDT it's usually 0.01%. |
| Variation margin | The change in the value of your open position, which the exchange debits or credits to your account. On crypto futures it's calculated continuously; on the Moscow Exchange — twice a day at clearing. |
| Contango / backwardation | Contango — when the future is more expensive than spot (the standard for perps in a bull market, hence positive funding). Backwardation — the reverse, the future below spot (panic, negative funding). |
| Maker / Taker | The maker places a limit order and creates liquidity (lower fee). The taker takes someone else's order with a market order (higher fee). |
Ask about the video or about futures in general
Ask any question — about the content of the video or about working with crypto futures in general. The ready-made prompts below are the most common beginner questions.
Quiz: are you ready for crypto futures?
7 questions from the key moments of the video. It'll show how ready you are to open your first trade — and which gaps you should close before putting in real money.
Frequently asked questions about crypto futures
What is a futures contract in simple terms?
What are crypto futures in simple terms?
How are futures different from spot?
What does 50x or 100x leverage mean in crypto?
What is liquidation in crypto and how do you calculate it?
What is funding and who pays it?
What's the difference between isolated and cross margin?
What are perps (perpetual futures)?
What are short and long in crypto?
Which exchange should you trade crypto futures on?
What amount should you start trading futures with?
Are futures a casino or not?
Are futures haram or halal?
How do you open and enable futures on Binance?
What are the fees on Binance and Bybit for futures?
What is variation margin on futures?
If funding is negative — who pays whom?
Why do beginners blow up their account on futures?
What is the danger of futures?
Can you make money on futures?
What does a futures contract look like?
How is a future different from a stock?
Why were futures invented?
Summary: the essentials in one minute
- In cross margin, liquidation is driven not by leverage but by position size relative to your account — enter with a small share (1–2%).
- Multi-trading on Bitunix lets you hold long and short separately and hedge the trade — the liquidation price moves far away.
- Funding eats your account when you hold a position for a long time — calculate it in advance.
- A stop-loss and 1–2% risk per trade are what actually keep your account alive over the long run.
- First practice the strategy on a demo account, and only then on a real one.
Ready to start? Register on Bitunix with the code aliev, practice on the calculator bot, and watch the full video breakdown.
About the author
Aziz Aliev
A practicing crypto futures trader. Shares breakdowns on risk management and trading psychology. Runs two Telegram channels — one on cryptocurrency and one on forex, a calculator bot for traders, and the YouTube channel @alievtrade with breakdowns and real trades.
Full video transcript
A complete text transcript of the video — to find the right moment by phrase or to quote it. Collapses with a single click.
Expand the transcript (≈ 20 minutes of reading)
[00:00] Why do 99% of beginners blow up their account on futures within the very first month? It's not the market or the leverage. People blow up their account for one reason: they enter with too large a size, a percentage of their account. In this video I'll show how to trade so that you never get liquidated, even at 50–100x leverage.
[01:07] I'll demonstrate on a Bitcoin chart on the Bitunix exchange — I chose it for its unique 'multi-trading' feature. It lets you separate orders so that they don't depend on each other. On other exchanges positions are merged and averaged. Here each one is independent.
[01:47] You only need to know five things: available balance, entry size, liquidation price, and the long/short direction. I have 500 USDT — that's the maximum loss. In the 'by value' button we set the percentage: 1% of 500 is 5 USDT, 10% is 50 USDT.
[03:14] The liquidation price is visible after clicking the open button. On 5 USDT, at any leverage there's no liquidation — the amount is too small. On 50 USDT the short's liquidation is at 904,000 USDT. There's none for the long: the price won't fall below zero.
[03:53] We set 200x leverage — there's no liquidation for the long, and the short's doesn't change. Whether 200x or 10x, the amount is the same. The magic is in the margin.
[04:18] In cross margin the exchange looks at the entire balance. 500 USDT is the safety cushion. Long: I open on 50 USDT, and even if Bitcoin falls to zero I'll lose only 50, and 450 will remain. There's no liquidation at all.
[04:54] With a short it's different: the price can rise infinitely. So there is a liquidation level, but it's as far away as possible — 904,000 USDT.
[05:27] Why doesn't leverage affect liquidation in cross? Only the amount frozen for the trade changes. The position was on 50 USDT and stayed that way. The balance was 500 and stayed 500. The liquidation doesn't change. In cross, what matters more than leverage is the position size relative to the account.
[06:04] With isolated margin everything is different: leverage directly affects the liquidation price. The rule 'the higher the leverage, the closer the liquidation' is true only for isolated.
[08:00] To get a close liquidation even at 100x in cross — enter an amount 10 times larger than the account (5,000 USDT on 500). Only then is the short's liquidation at a 10% move.
[09:14] The main thing is multi-trading. We open a short on 50 USDT, with a take-profit at a 5% move down — about 2.5 USDT of profit. Then a long on the same 50 USDT — the long's liquidation is 238 million USDT, the short's shifts a little closer, but it's still in outer space.
[12:55] I use unclosed price-open points: the daily chart, where the price opened. On my site, over a year the points close with a probability of 87–95%. For Bitcoin it's 90% on average, 94% over 2 years. For Litecoin — above 95%.
[14:46] I open a long with a TP at 75,930 and a short with a TP at 70,740. The liquidation of both positions is 238 million USDT thanks to the hedging. The price will reach one of the take-profits first.
[15:38] When the price reaches one of the take-profits, the position closes in profit. The liquidation shifts, we open a new position in the same direction — and keep 'pumping' the market in both directions.
[17:14] You'll say 'it's silly to catch 1–2 USDT at a time'. With a 500 USDT account you pull out 20–30 USDT a month — that's 4–6%. What bank gives that much? With 100,000 USDT even 2% is 2,000 USDT. And all at minimal risk.
[18:32] I made a calculator: you enter the balance, entry percentage, price, leverage, direction — and immediately see the liquidation price, the profit at various distances, and how many more trades you can safely open. It's available to referrals by UID on Bitunix.