Profitable Choices: Forex Trading And Mining Tips For Ontario Investors


Profitable Choices: Forex Trading And Mining Tips For Ontario Investors – Leverage is an essential tool in traditional and cryptocurrency markets. This allows for better capital efficiency as traders do not have to lock up the entire amount of capital. Along with futures and options, they help introduce liquidity into the market. Because the use of leverage necessarily increases both potential returns and risks, users should always exercise caution.

Over-leveraging, or abusing leverage, is one of the common reasons beginner traders fail. It’s like aiming for home on every swing – the problem with this approach is that it’s incredibly unsustainable. Needless to say, a high-risk, all-or-nothing environment, where any minor mistake can wipe out a trader’s capital, is not the kind of environment we would bet on futures.

Profitable Choices: Forex Trading And Mining Tips For Ontario Investors

Profitable Choices: Forex Trading And Mining Tips For Ontario Investors

Mistakes are bound to happen during trading; No human or perfect algorithm can accurately predict all market movements. Don’t use too much leverage so that mistakes don’t wipe out your capital, your self-esteem, and your chances of learning from your mistakes. Especially since cryptocurrencies are extremely volatile and unpredictable, excessive leverage can materially harm your chances of success in any particular trade and potentially result in large losses.

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At Futures we believe that all our clients should fully understand the impact of leverage and the circumstances in which it can significantly impair the likelihood of a profitable trade. We also believe that allowing excessive leverage is not in the best interests of our clients, our firm or our industry.

Not only does leverage magnify your losses, it also magnifies your transaction costs. The transaction costs associated with using high leverage can gradually drain your capital.

Let’s say you have stored 500 USDT in your futures wallet. You decide to open a 100x leveraged position with your 500 USDT deposit, giving you a total exposure of 50,000 USDT (500 x 100). Taking into account the standard holder fee of 0.04%, the cost of opening this position will be 20 USDT – that’s 4% of your account.

With one trade and the market still not moving, you should already factor in 4% when calculating your overall P&L. Therefore, your account balance decreases if your position is incorrect, thereby increasing your effective leverage. Additionally, you will be charged a funding fee every eight hours when trading standing contracts. Assuming a low funding fee of 0.01% (or 0.04% daily), this translates to an additional 20 USDT daily deducted from your account balance.

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Therefore, traders should consider the associated cost of using high leverage, as it can have a big impact on your account over time: the higher your leverage, the higher your transaction cost as a percentage of your trading capital.

This shows how excessive leverage can distort the probability of your trade being successful. This distortion is caused by the interaction of leverage and transaction costs such as fees and financing. In other words, high transaction costs as a percentage of your trading capital can tip the odds against you.

If your margin is less than 100 times the market value of your position, your chance of losing increases very quickly. This is because the costs will eat away at your margin capital, leading to a greater likelihood of liquidation.

Profitable Choices: Forex Trading And Mining Tips For Ontario Investors

Futures is the first cryptocurrency exchange to create a responsible trading program, devoting resources to further educating users about the dangers of trading and introducing security measures, including leverage limits, anti-addiction restrictions and “cooling off” suspension features.

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We welcome more customers and realize a greater responsibility to protect them as global adoption accelerates. However, we remind you that the cryptocurrency market is risky and all users who want to get involved should exercise care and self-esteem. Novice users should exercise caution and engage in responsible trading practices. This is why we require users to take mandatory tests and complete training videos when users register to trade futures.

In addition, we also limit our maximum leverage for new accounts to further expand customer protection. On July 19, 2021, Futures began limiting leverage levels to a maximum of 20x for accounts open within 30 days.

This new rule was further enhanced on July 27, 2021, where we decided to further extend the leverage limits for new accounts from 30 days to 60 days. This means that new futures accounts cannot access leverage greater than 20x within 60 days of registration.

Most futures customers do not use high leverage, and some of our customers do not use any leverage at all. Regardless, this new measure is an additional way we can help secure new users on our platform.

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We encourage you not to make a habit of using maximum leverage when trading. Our maximum allowed leverage provides flexibility when you need it, but you should always choose a conservative amount of leverage in the normal course of trading.

Before deciding on the degree of leverage, investors should study generally accepted guidelines. The three basic principles of leverage are as follows:

Traders should use the leverage that suits them. For example, if you are conservative or new to cryptocurrency trading, 5x or 2x leverage would be appropriate.

Profitable Choices: Forex Trading And Mining Tips For Ontario Investors

The amount of appropriate leverage is determined by the trader’s experience, risk tolerance and comfort level when trading the cryptocurrency markets. Newbie traders should always exercise caution as they learn to trade and gain experience.

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The responsibility does not lie solely with consumers. Each exchange must take responsibility for educating its users as well as enabling users to use the services and features of their platform.

Futures will continue to invest efforts and resources in both aspects of platform security and risk management mechanisms to secure and protect our customers and their funds.

Additionally, as regulatory frameworks for our fledgling crypto industry continue to take shape around the world, Futures is taking concrete steps to live up to our commitments and work with regulators to protect consumers, encourage innovation, and build a fair and sustainable industry.

Disclaimer: Crypto assets are volatile products with a high risk of losing money quickly. Prices can fluctuate significantly on any given day. Due to these price fluctuations, your item may increase or decrease significantly in value at any given time, which may result in the loss of all capital that you have invested in the transaction.

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Therefore, you should not trade or invest money that you cannot afford to lose. It is important that you fully understand the risks involved before you decide to trade with us, taking into account your financial resources, experience level and risk appetite. If necessary, you should consult an independent financial advisor. The actual income and loss you experience will vary depending on many factors, including, but not limited to, market behavior, market movement and the size of your trade. Past performance is no guide to future performance. The value of your investments may go up or down. Learn more here.

10 Most Frequently Asked Questions About Futures What is the Futures Funding Rate and Why It Matters Trading Crypto Futures: How Much Is It Worth? Everyone knows that cryptocurrency trading can be profitable. But given the volatility of crypto, traders are often looking for other ways to leverage their involvement in the space, and one way is through mining. In fact, miners are vital to the crypto ecosystem.

Just think of Bitcoin. In the early days, Bitcoin miners only needed a computer and the Internet, and voila: hundreds, if not thousands, of BTC could be mined from the comfort of the miner’s home, without any special equipment. But those days are long gone. Bitcoin miners today require expensive mining rigs and graphics processing units (GPUs), cheap power supplies, mining software, and even mining pool membership.

Profitable Choices: Forex Trading And Mining Tips For Ontario Investors

However, mining BTC is not the only game in town, mining has grown in popularity over the years, with some turning to crypto mining using their mobile phones. Whether you want to explore the viability of crypto mining as an investment and how it fits into cryptocurrency trading, or you’re just curious about the mining process itself, read on as we take a closer look and even debunk a few misconceptions along the way. .

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Mining takes place on the blockchain, a process that creates new units of the virtual token, which are then put into circulation on the market. Crypto mining also describes how transactions are verified on the network and is a critical element in blockchain operations.

To better understand the concept of mining, let’s go over the blockchain, a shared, immutable record of transactions. Blockchain consists of a decentralized network of computers managed by individuals (miners) around the world. It gets its name from its description as a series of linked blocks, and each time a transaction occurs, the corresponding data is stored on the block. As mentioned earlier, miners are responsible for verifying blockchain-based transactions and do so with special hardware.

Miners compete to be the first to complete a complex computational math puzzle created by the network. Whoever “wins” the race successfully claims a block of transactions and, in the case of BTC mining, they are rewarded in Bitcoin. Note that these are newly minted BTC tokens.

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