# How do I use non-recourse leverage to buy Bitcoin?



## Gordon Gekko (30 Nov 2017)

Brendan Burgess said:


> Gordon
> 
> I don't think anyone could be that stupid to borrow to buy Bitcoin????
> 
> ...



If only! A lot of it is being purchased using leverage.

It’s easy enough to stick in €1,000 and buy €100,000 worth.


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## Brendan Burgess (30 Nov 2017)

Hi Gordon 

As you know, I think Bitcoin is a huge bubble. 

But if I could get 100/1 odds without recourse, I would do it. 

Any idea how? 

Brendan


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## Gordon Gekko (30 Nov 2017)

If only it was that simple!

The margin call can carry you out; I stick in €1,000 and purchase a position with a value of €100,000.

If it increases in value by 10%, I’ve made €10,000.

If it falls by 1%, my money’s gone.

It’s just CFD/Spreadbetting/Leveraged trading type stuff.


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## fpalb (30 Nov 2017)

Of course there's recourse, you have to deposit an initial amount to get the margin, if the market moves against you 1% in the other direction you'll be forced to liquidate and lose the amount you deposited.


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## cremeegg (30 Nov 2017)

Does the deposit have to exceed the €100,000 position. Per GG example


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## Brendan Burgess (30 Nov 2017)

Hi Gordon

Thanks for that. I wouldn't mind losing the money. But I would not like to be on the hook for €99k. 

I haven't uses spreadbets before.  I will have a look. Which is the best platform? One that is likely to pay in the event of a winning bet.

Brendan


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## Gordon Gekko (30 Nov 2017)

I haven’t looked at buying Bitcoin, but in terms of using leverage I would tend to favour IG purely on the basis of their size.


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## Gordon Gekko (2 Dec 2017)

cremeegg said:


> Does the deposit have to exceed the €100,000 position. Per GG example



It depends on the underlying investment.

With something like the Nikkei index, you’d only have to deposit circa €670 to have a €100,000 position.

With a share of questionable quality, you might have to lodge a much greater amount (e.g. €50,000).


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## Palerider (2 Dec 2017)

Give me enough leverage and I can lift the world....

Guys please be very careful, readers of this thread need to understand leverage is your best pal on the way up but will kill you on the way back down.

Invest what you can lose, don't access leverage at anything other than a low percentage.


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