📌 Understanding Cross Leverage in Futures Trading: A Tale of Two Trades!

🚀 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 👇

🔄 Two Opposite Positions, Same Size:

📈 Long Position 📉 Short Position

🟢 +87.02 USDT (Profit) 🔴 -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% 🚀 ROI: -1,023.75% 📉

Leverage: 125x ⚡ Leverage: 125x ⚡

🤯 So What’s Happening Here?

The trader opened both Long and Short positions on BTC using Cross 125x Leverage — likely to hedge risk or test market behavior.

🔍 Since the market price went up, the Long gained profit, while the Short lost the same amount.

➡️ Net Result = Zero PNL (no real gain or loss)

⚠️ Key Takeaways for Beginners:

📌 Using high leverage like 125x amplifies both gains and losses.

🔀 Opening opposite positions on the same pair can cancel each other out.

🔒 Cross Margin means your entire account balance helps support the position — liquidation risk is high if things go wrong.

🧠 Don’t trade blindly — understand what your positions are doing!

💡 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 🚀📉📊💹

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