I have been looking at crypto leverage trading. Let’s say I put in $50 at 5x leverage and I take profits at 100% gains. Do I get the full $250?
I’m confused about what the exchange gets out of it, is it a percentage, an amount when you make the trade, or nothing at all?
I’m using of Phemex exchange
In: Other
When you trade with leverage, someone is lending you money. In your example, you put up $50, someone lends you $200, and you use that to buy $250 worth of stuff. The lender charges you interest on the loan. If they were charging 6% annual interest, and you held the crypto for 30 days before selling it, then the interest you would pay would come out to about $1.
they get interest from making a loan. that’s it if it isn’t though your broker they don’t even always need to know what your borrowing it for. (I don’t know if your broker does or not). you could (but probably shouldn’t (almost really definitely shouldn’t) ) leverage up with a credit card I think if you can transfer the funds to your broker.
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