Notes on Apr 5, 2022
7:13 minutes
Crypto Academy - Technical Ninja
Risk Disclaimer: Trading can contain substantial risk and is not suited for every investor. An investor could potentially lose all or more than their initial investment. “Risk capital” - is money that can be lost without jeopardizing one’s financial security or lifestyle. Only “risk capital” should be used for trading and only those with sufficient risk capital should consider trading. iMarketsLive is not a licensed financial advisor nor does it or give out financial advice. The user of IML products and/or services assumes full risk and responsibility for their trading activity. Past performance is not indicative of future results. Individual results will vary due to a variety of market and timing conditions.
What are the benefits of trading Cryptocurrency with Leverage
What are the risk of trading Cryptocurrency with Leverage
What size of account do I need to trade Cryptocurrency with Leverage
How can I plan my Risk to Reward Ratio in advance
How “Lots” work with Cryptocurrency
Overview
Your Lot Size determines exactly how much each pip is worth when price moves.
Opening a trade requires Margin, which is a percentage of your account balance placed on reserve. This is not a fee but it is important you maintain a high enough equity percentage to avoid being margin called for over-leveraging your account.
Leveraged Trading is different from purchasing Cryptocurrency on an exchange!
Micro = 0.01
Mini = 0.1
Standard = 1.00
Cryptocurrency Pip Conversion
If BTCUSD goes from 7001 to 10000 that’s 2999 pips
If Spread says 2000 that’s 20 pips
7000 - 10000 = 3000 Pips
The Dollar is the pip
If ETHUSD goes from 570.5 to 600.5 that’s 300 pips
If Spread says 130 that’s 13 pips
570 - 600 = 300 Pips
The 1st decimal place is the pip
If NEOUSD goes from 50 to 100 that’s 500 pips
If Spread says 20 that’s 2 pips
50.4 - 50.4 = 100 Pips
The 1st decimal place is the pip
If LTCUSD goes from 120 to 150 that’s 300 pips
If Sprea says 30 that’s 3 pips
120 - 150 = 300 Pips
The 1st decimal place is the pip
If BCHUSD goes from 1000 to 500 that’s 500 pips
If Spread says 290 that’s 2.9 pips
1000- 900 = 100 Pips
The Dollar is the pip
If SANUSD goes from 1.25 to 2.25 that’s 100 pips
If Spread says 100 that’s 1 pip
1.25 - 1.35 = 10 Pips
The 2nd decimal place is the pip
If OMGUSD goes from 10.5650 to 10.515 that’s 5 pips
Id Spread says 500 that’s 5 pips
10 - 20 = 1000 Pips
The 2nd decimal place is the pip
If XMRUSD goes from 150 to 1 that’s 1500 pips
If Spread says 50 that’s 5 Pips
154.60 - 156.60 = 20 Pips
The 1st decimal place is the pip
If XRPUSD goes from 0.60500 to 1.255 that’s 6500 pips
If Spread says 175 that’s 17.5 pips
1.00400 - 1.005 = 10 Pips
The 4th decimal place is the pip
If ZECUSD goes from 241.54 to 300.5 that’s 600 pips
If Spread says 110 that’s 11 pips
240.33 - 300.33 = 600 Pips
The 1st decimal place is the pip
If IOTAUSD goes from 1.7560 to 1.7460 that’s 1 pip
If Spread says 100 that’s 1 pip
1.7500 - 1.8500 = 10 Pips
The 2nd decimal place is the pip
If EDOUSD goes from 1.5500 to 1.50 that’s 5 pips
If Spread says 450 that’s 4.5 pips
1.5503 - 1.5003 = 5 Pips
The 2nd decimal place is the pip
In Summary - Leverage can be beneficial when trading Cryptocurrency to multiply your potential profits, although make sure you give the market enough room to move!
Know your reward to risk advance to minimize the emotional response you will experience.