How to open a leveraged account for Binance?
After logging in to your Binance account you should move your mouse cursor over your profile icon. This icon is different from any other user. It is actually created on the basis of the first two letters from the email address. After hovering over the profile icon we will see the most important information and the subject of your account and also more options. Click your e-mail address to be able to go to the appropriate section.
After redirecting we will see the most important information about the account, including its balance. In order to be able to start the procedure of activating the account just with the lever, click on the window – Leverage.
If everything went well, after redirecting you will see an information window that reminds you of the risk associated directly with trading leverage. Let’s read the information and if we agree with it and accept it, click on the button – open an account with leverage.
However, in order to use your leverage account, you must first transfer funds from your Binance main account to your leverage wallet account. To do so, you need to click on the Wallet option in the menu, then on Balance and finally on Leverage. The next step is the Tranfer button, which can be found on the right next to the cryptocurrency, which we want to fund our leveraged account.
After the transfer of the correct BNB to our leveraged account, we can already use the funds as a security for the loan of funds. Leverage account balance determines the maximum amount of funds we want to borrow.
Funds between the leveraged account itself and the Exchange account can be transferred without any fees or restrictions. However, we must remember that if I have already borrowed some funds and we decide to transfer them to the stock market wallet, the leverage level will increase significantly. If the level of leverage increases significantly, the probability of forced liquidation also increases. Before using the first leverage, make sure you understand the rules of operation and the risks associated with using this feature.
Example trade using leverage
Ola anticipates that the price of the BNB will increase in the coming days and thus decides to open a so-called long position with leverage on the BNB. In order to do it at all, Ola must first transfer the selected amount of funds from his stock account to the account with leverage, and then he borrows the BTC. The BTC borrowed from Ola is used directly to buy the BNB. From the moment the price of the BNB rises as Ola predicted, she will be able to sell the BNB bought at a profit and pay back the borrowed BTC. All this will be left to her after the repayment of the loan, i.e. her pure profit.
At the same time, however, it should be emphasized that while trading with leverage alone is able to multiply profits, it is also at the same time multiply its losses. So if it turns out that the price of the BNB instead of rising decreases, then the loss of Oli is multiplied in comparison with ordinary trading.
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