The following variables are given:
Funds: $10,000 USD BTC Price: $1000 Use Leverage of: 2x = $20,000 USD
Say I wanted to go long Bitcoin thinking it would be above $1000 in the next 6 months. I buy 20k USD worth of BTC (20 btc) at the $1000 price.
- What does the price of btc have to drop before I lose my initial investment of $10,000?
- What is the formula for something like this when using Bitfinex exchange?