#BTCReserveStrategy This is how leverage works for those who still have doubts, good luck to all, I appreciate my colleagues and new millionaires of the future
*Calculation of Profit with Leverage*
To calculate the profit, we need to know how much the investment is amplified with leverage and how much the price of Bitcoin (BTC) increases.
*Data:*
- Initial investment: $100
- Entry price: $110,000
- Exit price: $125,000
- Leverage: 30x
*Calculation:*
1. *Amplified investment*: $100 * 30 = $3,000
2. *Amount of BTC purchased*: $3,000 / $110,000 = 0.02727 BTC
3. *Value of the investment after the increase*: 0.02727 BTC * $125,000 = $3,408.75
4. *Profit*: $3,408.75 - $3,000 = $408.75
*Profit*: $408.75
The profit would be $408.75. However, if we want to calculate the profit in terms of the initial investment of $100, we can do it as follows:
*Profit in terms of initial investment*: ($408.75 / $100) * 100% = 408.75%
The profit would be 408.75% with respect to the initial investment of $100.
*Important:* Leverage can amplify both gains and losses. If the price of BTC had decreased, the loss would also have been multiplied. It is essential to understand the risks and use leverage responsibly.
