Crawling from the REKage: The Odds of Bankruptcy in Leveraged Trading
Liquidations happen, at almost any leverage level, far more frequently than expected.Leverage can be a trader’s best friend — or their worst enemy. A 5% move in a stock or token can turn into a 25% gain, but what happens when it doesn’t work in your favor? In this article, we delve into the dangers of leverage, examining the actual odds of liquidation at different levels of leverage across various assets and timeframes. “Traders using 25X leverage have a 25% chance of losing 100% of their mon...
Crawling from the REKage: The Odds of Bankruptcy in Leveraged Trading
Liquidations happen, at almost any leverage level, far more frequently than expected.Leverage can be a trader’s best friend — or their worst enemy. A 5% move in a stock or token can turn into a 25% gain, but what happens when it doesn’t work in your favor? In this article, we delve into the dangers of leverage, examining the actual odds of liquidation at different levels of leverage across various assets and timeframes. “Traders using 25X leverage have a 25% chance of losing 100% of their mon...
