# How does Poloniex margin trading work?

takes2long

How does Poloniex margin trading work?

Can I end up in debt with the exchange? How does this shit work.

I need to take risks to get rich. Got 10 BTC to play with.

All urls found in this thread:
https://1broker.com/m/r.php?i=11313
BinaryMan

bumpant

Why don't you just go ahead and save time and just give your BTC to the trollbox. You r 2 stupid to beat them at their own game.

VisualMaster

@takes2long
Before i start: you don't need margin trading with cryptos
Markets are volitile

Alright you always get a 2.5 leverage
Meaning your 10 btc become 25 because some lends you 15 more (you will pay small lending fees)

10/25 = 40% this is your margin
If your 25 btc will be worth 15 because of a bad trade you will habe no more bitcoins since at that point you will be forced to pay back the 15 someone lent to you

Meaning: NO DEBT

Normaly polo will margin call you at 20% margin, meaning you would still have little less than 1/2 your investment
Actaully let's calculate that

(10-x)/(25-x)=20%
<=> x= 6.25

10-6.25=3.75 is the number of bitcoins you would still have after a margin call at 20%

It basically magnifies your profits and losses by 2.5
But it can also buttfuck you if you don't have a stop loss and get margin called

PurpleCharger

I made 10 BTC while you have 0.

@VisualMaster
Well, if there is no debt then i think its worth taking some big risks. I could fuck around with 1 BTC and go long in a conservative way.

After years watching cryptos i have developed a feel about it. MAID for example, im sure it will eventually pump and reach 20k again.
If I go with 1 BTC and do margin trading and then sell at 20k I would get a pretty legit profit.

If I did this right now

8061.2656187 MAID at 0.00012405

Selling back at 20k gives me 1.61225312, so

0.61225312 profit x 2.5 = 1.5306328 profit

It's a reasonable bet imo.

Stupidasole

@PurpleCharger
In addition: my real fear would be thinking how to unload the profits.

I guess I could drop 1.53 BTC in a single order at market value once its around 20k and it would go through since the liquidity on MAID is big.

Dreamworx

Has anyone ever traded big time with margin or is everyone poorfagotrying with 0.01 BTC trades?

Methnerd

the only way you can end up in debt trading margin on polo is by short-selling (for it to go down). go long (for it to go up) and it will auto-liquidate you when the open margined position dips too low.

Snarelure

Trade forex with Bitcoin. EUR and gpb can only go down from here https://1broker.com/m/r.php?i=11313

Carnalpleasure

@Methnerd
But if you open a long position, and it goes down.. you end up without money, or if it goes down but you still keep the order and then it goes up later on, you will make the gains? (it works as a normal order)

Skullbone

@Carnalpleasure
I mean, when you open al long position order, the order gets automatically cancelled if it goes down or something? idk if it makes sense.

TechHater

bomp

5mileys

@Snarelure
Wait is this legit? Since you deal with stocks I assume they are regulated and insured? Also since it's bitcoin, is the three day wait for funds to settle completely gone.

girlDog

@Carnalpleasure
I would think and hope they automatically liquidate a short position before it takes you in the negative But, if you bet on a 4 dollar stock to go down (shorting) but it goes up to 40 and you ride it all the way up, despite being on the short- that is a good way in general to owe more money than you invested.

hopefully they wouldnt let you do that while leveraged at whatever margin, but i did see in the terms and conditions or another popup something regarding negative accounts and owing more money.

Emberfire

Its still not clear to me.

Has anyone actually DONE it?

WebTool

@Emberfire
done what? gone into debt there beyond your total deposits?

if they cant or dont liquidate your short in time, instead of just losing that 4 you'll owe another 4 when it completely doubles in asset value, and you'll owe another 12 when it gets to 16. but that would be ridiculous. riding a short %400 the wrong way.

see this image for an excerpt of poloniex' terms regarding oweing as a result of margin trading.

LuckyDusty

@WebTool
PS. this is the current 4-day chart for XEM against bitcoin.

New_Cliche

@WebTool
Dude I don't want to short, I want to bet on things going up.

So can I be in debt if I bet on things going up with a margin? (long)

My native language is not english so all that jargon shit gives me an headache, I have already read the margin trading section and its too complex desu

Raving_Cute

@New_Cliche
it's not only jargon but a concept and activity with which you are not familiar.

if you want to go long then they'd be much more likely to be able to liquidate you before you hit zero. the lending fees are only 2 percent for that margin lending.

as long as you make more than 2 percent, you'll get passed the additional amount you need to be profitable. and get out before your collateral has less than their money and an extra 2 percent there to pay them, and you'll be fine.

it's not jargon, they are the important subjects and words here. short/long, collateral, margin, liquidate. it is important to understand the definitions of these all before you try to trade on the margin.

the only thing i can tell you is to send bitcoin to poloniex and trade it in for xem. you're welcome

Bidwell

@Raving_Cute
I still don't get it.

Let's say I take a long position on XEM with margin.

So I start and buy at 0.00001120

I go to sleep, and during sleep, it falls to 0.00000800

but then 10 hours later, it goes to 0.00001500, giving me nice profits thanks to x2.5 of margin.

My question is: Since it went lower than 0.00001120 and I was using margin, I would be fucked and as long as the price went lower than my entry point (in other words when it got to 0.00001119) my order would automatically be lost and i lose all my money, or it doesn't matter how low it goes as soon as I don't sell just like a regular order? please respond.

Inmate

@Bidwell
as soon as I don't sell just like a regular order?
I meant as long as I don't sell just like a regular order?

Playboyize

@Inmate
As soon as it goes 25% under the bank takes your cash.