A 25x Leveraged Ether Long Shows About $500,000 in Unrealized Profit, and the Risk That Comes With It

A trader known as “Machi Big Brother” reportedly shows more than $500,000 of profit on screen from a leveraged ether long, but has not closed the position, Crypto Insiders reported. The figure comes from a Lookonchain report that cites monitoring by TradingBeats. The trader is betting on a rise in ether with 25x leverage, which means 100 euros of his own money can support a position of 2,500 euros.

Crypto Insiders illustrated the mechanics with a simpler case. With 200 euros at 5x leverage, a 10% price rise gives a profit of 100 euros, or 50% of the stake, while a 10% fall loses the same 100 euros. Trading platforms may close positions automatically when collateral runs thin, a process known as liquidation. At 25x, even a small move against the position can wipe out the margin.

The profit is only on paper. It can vanish while the trade is open, and the report is a snapshot rather than proof that the $500,000 was secured. Crypto Insiders also noted that the trader’s leverage exceeds what OKX’s European X-Perps product allows, which is up to 10x after a knowledge and experience check, and that nothing shows he is an OKX customer.

Readers should note that the Crypto Insiders piece was published in cooperation with OKX. Its main lesson stands apart from that: large screenshots of unrealized gains say little about risk, and leveraged positions can reverse quickly.

Track the market yourself with AiTraderView’s FREE tools: Crypto Cockpit for charts and 75+ indicators, Crypto Screener to find setups, and Crypto Portfolio to follow your holdings. Just create a FREE account and try them yourself!

Sources:

• Crypto Insiders: Ethereumhandelaar ziet halfmiljoen dollar winst op papier