Leverage Trading Guide — Step-by-Step Guide & Transcript

[00:05] talk about the most attractive but dangerous topic in the trading world and that is leverage. Especially when you trade on a platform like Delta Exchange where you get leverage up to 100x and 200x, the

[00:18] question is not how much leverage you are getting. Rather, the question is how much leverage you are getting. Rather, the question is how much leverage you should take. Today I will tell you what the correct leverage (x) should be according to your trading style and experience.

[00:32] So first of all let us talk about what leverage actually us talk about what leverage actually means? So let us understand leverage in simple language. So leverage means borrowed power. Suppose you have ₹100 in your pocket

[00:48] borrowed power. Suppose you have ₹100 in your pocket and if you take 10x leverage on Delta Exchange and if you take 10x leverage on Delta Exchange then you can trade not with ₹1000 but with ₹1000. This means that your ₹100 becomes ₹1000 if you

[01:02] take 10x leverage. It sounds very good, but not that you will make huge profits with less money. But there is a hidden trap here that new traders often forget. So what is the math and danger of this? Okay, how do you calculate the math of leverage and risk here?

[01:19] So what is the math of risk ? So let me tell you, the ? So let me tell you, the math here is very simple. If you have taken 10x leverage and the market goes against you by just 10%, then your

[01:34] entire money will become zero. That means your capital will become zero. And this is called liquidation. Ok? And if you have taken 20x leverage, that is, you have taken 20x leverage, then the market has to go against you only by 5% and you will be

[01:51] out of the market straight away. Your capital will become zero here. And if you have taken 100x leverage, then a small shock of just 1% in the market will empty your entire account. Ok? So you have to understand this thing, this mathematics. Not

[02:07] many people will explain this to you. Okay, so I am explaining this much detail to you. So please subscribe to the channel. Please like the video as well. Ok? So let us move ahead. So what do we need to remember here? So we have to

[02:20] remember that the higher the leverage , the shorter your survival time will be. This means that your survival time, your time to remain in the market , will be lesser the more leverage you take. Ok? So friends, now let us talk about

[02:36] who should take how much leverage. The question that people have is how should we select leverage and how much leverage in Delta Exchange? So I have divided it into three categories. The first category is that

[02:51] of beginners who have less than 1 year of experience. Okay, if you are new then you should take maximum leverage of 1x to 3x. Ok? The crypto market on Delta Exchange is

[03:03] very volatile. That means 2x or 3x leverage gives you more room to make mistakes. Understand? Even if the market goes against you, your positions will

[03:15] not be liquidated immediately. Ok? The second category is that of intermediate and swing traders. If you understand the charts and strictly follow the stop loss and strictly follow the stop loss then you can take profits of 5x to 10x. That

[03:30] means this is a sweet spot and the profit here is quite good but the risk also remains under control. Okay, and here you also remain disciplined if you do this much and take leverage of 5x to 10x.

[03:45] And the third category is of scalpers and pro people. Those who sit in front of the screen all day and take trades for 5-10 minutes and then exit after taking their profit. Ok? They can go up to 20x to 25x.

[04:01] Maximum 50x. Ok? So keep in mind here that leverage of 100x and 200x will not be called trading. That is what gambling is. Ok? Even on Delta Exchange, there is

[04:13] 100 tax and 200 tax leverage available here. But it is wise to stay away from it. Because even a 1% move in crypto happens here in the blink of an eye. You must be aware that if you invest in crypto here, then

[04:30] your position here can be liquidated. So friends, now let's talk about option trading on Delta Exchange. So what Delta Exchange is mainly known for is options trading.

[04:47] is premium. Ok? If you are selling options then the leverage here is to selling options then the leverage here is to give you margin benefit. Ok? Here too, I suggest not to exceed the exposure of 5x to 10x. Otherwise, a gamma

[05:02] blast will blow up your entire capital. So what is the conclusion of my entire video? So finally my conclusion is that leverage is a double edged sword. It will make you rich and also make you poor. So your goal when trading on the Delta Exchange is

[05:17] not to hit the jackpot but to survive to trade the next day. Understand? So initially you can go up to 2x, 3x, 5x, 10x, 50x. Do

[05:29] n't be greedy and stay safe and keep trading as is. Ok? If you liked the video and understood the meaning of leverage in simple language, then do not forget to subscribe to Bhai's channel and support me to watch such videos.

[05:43] Subscribe to the channel. Please like this video and in the next video. Till then take care. Bye. Hail India.