๐ Understanding Cross Leverage in Futures Trading: A Tale of Two Trades!
๐ Ever wondered what happens when you open both a Long and a Short position on the same pair with high leverage?
Take a look at this real-life example on BTCUSDT Perpetual Futures ๐
๐ Two Opposite Positions, Same Size:
๐ Long Position ๐ Short Position
๐ข +87.02 USDT (Profit) ๐ด -87.02 USDT (Loss)
Entry: 108,392.00 Entry: 108,391.90
Mark Price: 118,061.20 Mark Price: 118,061.20
Size: 1,062.6 USDT Size: 1,062.6 USDT
Margin: 8.50 USDT Margin: 8.50 USDT
ROI: +1,023.74% ๐ ROI: -1,023.75% ๐
Leverage: 125x โก Leverage: 125x โก
๐คฏ So Whatโs Happening Here?
The trader opened both Long and Short positions on BTC using Cross 125x Leverage โ likely to hedge risk or test market behavior.
๐ Since the market price went up, the Long gained profit, while the Short lost the same amount.
โก๏ธ Net Result = Zero PNL (no real gain or loss)
โ ๏ธ Key Takeaways for Beginners:
๐ Using high leverage like 125x amplifies both gains and losses.
๐ Opening opposite positions on the same pair can cancel each other out.
๐ Cross Margin means your entire account balance helps support the position โ liquidation risk is high if things go wrong.
๐ง Donโt trade blindly โ understand what your positions are doing!
๐ก Tip: For safer trading, start with lower leverage and study how PNL, Entry Price, and Mark Price interact.
#CryptoTrading #BinanceFutures #LearnCrypto #Futures101 #BTCUSDT #LeverageTrading #CrossMargin #NewbieGuide #CryptoEducation ๐๐๐๐น
