How to Multiply Profits Using Leverage When Price Goes Up?
1. Take BCH/USDT as an example. Assume the maximum leverage is 5x, and you predict the price of BCH will rise from 400 USDT to 600 USDT.
2. If you have 2,000 USDT in capital, with 5x leverage, you can borrow up to 8,000 USDT and buy 25 BCH at 400 USDT each. When the price rises to 600 USDT, sell the 25 BCH.
3. Profit calculation: 25 BCH * (600 - 400) = 5,000 USDT.
4. With 2,000 USDT for a full spot trade, the profit would be only 1,000 USDT. But with 5x leverage, your profit is multiplied by 5.
Note: To simplify the calculation, the above example ignores the borrowing interests, margin profit/loss, trading fees, and funding rates. The results are for reference only.
| Buy Quantity | Buy Price | Sell Quantity | Sell Price | PNL |
| 25 BCH | 400 USDT | 25 BCH | 600 USDT | 5,000 USDT |
Steps for Going Long
If you have 100 USDT and want to place a limit order to go long on BCH with 5x leverage:
1. Open the CoinEx App, log in to your account, tap [Spot] on the bottom navigation bar, and tap [Margin] to enter the “Margin Trading” page. Then search for and select the BCH/USDT trading pair in the search bar.
2. Tap the asset transfer icon. Select the transfer direction from [Spot Account] to [Margin Account]. Double-check the coin name and enter the transfer amount, then tap [Confirm].
3. On the “Margin Trading” page, click [Borrow]. Select the coin [USDT], enter the Borrowing Amount, enable [Auto Renewal] (enabled by default), and click [Confirm] to complete the borrowing.
Note:
(1) When you use 100 USDT as collateral and borrow 400 USDT, your principal is magnified 5 times, which means 5x leverage.
(2) The loan period is 10 days. If the loan is not repaid within this period, the Auto Repayment will be triggered.
(3) Auto Renewal:
- If Auto Renewal is disabled for a loan order, you will receive notifications at 72, 24, 8, and 1 hour before the loan is due.
- If Auto Renewal is enabled but fails due to insufficient balance in the loan pool, you will be notified for a loan call. The due time is extended by 24 hours for repayment. If you still haven't repaid after this buffer period, the system will retry auto-renewal. If it fails again, Auto Repayment will be triggered.
(4) You can also enable Auto Loan, allowing the system to determine if borrowing is necessary upon placing an order. The system will then automatically borrow the required amount.
4. In the BCH/USDT Margin Trading market, buy 1 BCH at 400 USDT.
Note: After the order is filled, you can view your position details in [Margin].
5. When the price of BCH rises to 600 USDT, you can sell BCH for USDT and repay your loan.
6. On the “Margin Trading” page, click [Borrow] > [Repay]. Select the coin [USDT], enter the Repayment Amount, and click [Confirm] to complete the repayment.
Note:
- You can also enable Auto Repayment. After borrowing, the system will check all your Margin accounts every 30 minutes.
- If the available assets in your accounts are sufficient for repayment, the system will trigger an Auto Repayment.
7. After repaying, you can transfer the remaining assets back to your spot account:
Click the asset transfer icon. Select the transfer direction from [Margin Account] to [Spot Account]. Double-check the coin name, enter the amount, and click [Confirm].
Risk Warning:
Margin trading amplifies potential returns through borrowed funds, but it can also expose you to amplified losses if the market moves against your expectations. Margin trading carries risks. Traders should avoid opening positions with high leverage to prevent forced liquidation or bankruptcy during extreme market conditions.
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