The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

In fact, whether it is Bitcoin's decentralization, its trust system value, or its scarcity and security, it has been proven that Bitcoin is an ideal tool for value savings. Generally speaking, traditional methods of storing value include precious metals, U.S. dollars, and government bonds. Bitcoin enjoys the reputation of digital gold because of its characteristics. In fact, in addition to being a value savings, many investors also like to make leveraged investments in Bitcoin. This is a common financial transaction system that can amplify investors' transaction amounts and lead to higher risks. Before investing in Bitcoin leverage, many investors are more interested in how high the Bitcoin leverage is? Let the editor of the currency circle introduce to you the interest rate of this Bitcoin leverage.

## How high is the leverage interest on Bitcoin?

Interest is calculated independently for a single borrowing order. Interest is calculated for the first time when the currency is successfully borrowed, and interest is calculated every 24 hours thereafter. When the borrowing order remains unpaid for 15 days, the system will conduct compound interest settlement on the unpaid portion (the unpaid principal + unpaid interest will be included in the principal of the next stage), and the next stage of interest calculation will begin.

The margin lending rate is determined by each exchange. Different exchanges charge different amounts for leverage fees. Next, the editor of the currency circle takes an example (), the principal is 100 US dollars, and the leverage interest is 0.02%. , then, the handling fee for Bitcoin’s 100 times leverage is US$2.

Bitcoin leverage fee calculation method: Leverage fee = principal * leverage multiple * leverage interest, leverage interest = borrowing amount * (0.02%/24) * number of borrowing hours, leverage fee is calculated through these two formulas of.

## How to set the leverage multiple for Bitcoin trading?

In fact, given how volatile the crypto market is, in most cases traders don’t actually have to use leverage. Of course, when using leverage, be sure to set a stop loss. So, how do you choose the leverage multiple for each trade? Here are a few examples to illustrate.

Example 1: Assume that the stop loss point is $9,400 and the risk you are willing to take is 2% of the account amount. If we go long at $10,000, the drop from the opening price to the stop loss price is (10,000-9,400)/10,000=6%. The calculated position size is 2/6=33%, so there is no need to add leverage.

Example 2: Assume that the stop loss point is $6,200 and the risk you are willing to take is 20% of the account amount. If we go long at $10,000, the drop from the opening price to the stop loss price is (10,000-6,200)/10,000=38%. The calculated position size is 20/38=53%, and there is no need to add leverage.

Full text introduction Before answering this question, the editor of Bitcoin Circle would like to talk to you about the principle of Bitcoin transactions. Simply put, the holder of Bitcoin has authorized the transfer of Bitcoin to other people. The new holder can again authorize the transfer to someone else in the Bitcoin ownership chain, generating another transaction to spend the Bitcoins, and subsequent holders spend the Bitcoins in a similar way.

Example 3: Assume that the stop loss point is $10,700 and the risk you are willing to take is 4% of the account amount. If we go long at $10,950, the drop from the opening price to the stop loss price is (10,950-10,700)/10950=2.3%. The calculated position size is 4/2.3=174%. At this time, a leverage multiple of 1.74 times can be set.

In addition, there is another way to calculate using the ATR (average true fluctuation, which is the moving average of the price fluctuations within a certain time period) indicator. Look at the 4-hour ATR (200) indicator, multiply by 3, and let's say you get $600. Convert the value into a percentage. If the current price is $10,000, it is 600/10000=6%. Assuming the maximum account risk is 3%, the maximum position size is 50%, without leverage.

The leverage multiple should be determined by two factors: the setting of the stop loss point and the investor's risk tolerance and confidence. In itself, leverage is not a strategy, but a tool to help investors formulate strategies.

When using high leverage, investors need to set a stop loss close to the opening price. But in many cases, leverage is just trading noise. I believe that high leverage should be used during breakouts and in some extremely oversold situations.

In addition, many users have certain misunderstandings about the isolated margin model. In the isolated position mode, the leverage multiple only represents the multiple of this position, not the actual multiple. In fact, this is just a lazy way to set a stop loss. After all, your biggest loss is only the margin in this position.

I hope everyone can understand how high the Bitcoin leverage interest is through the above introduction to Bitcoin leverage interest. When doing Bitcoin leverage trading, the most important thing you need to pay attention to is to prevent liquidation. If you want to prevent liquidation, you must take adequate preventive measures. First of all, you should control your position according to your personal funds, and open a maximum position each time. No more than 20 lots; and stop-profit and stop-loss should be strictly set, and investment returns should be combined with risks. After all, the investment market is always ever-changing; the last thing is to grasp the number of transactions, as the currency market is always cold storage and ruthless. , so investors had better follow the market and conduct transactions strictly according to the signals sent by the system.