Can someone please explain this image?
A guy purchases BTC at 100x leverage at the tip of the mountain and it immediately reverses big time. One of the comments is that his position got 'Liquidated'?
and What does it mean to trade at 100x leverage?
Thanks Veeky Forums!
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Okay, so hes trading with borrowed money to amplify the return of his investment. So, if he bought $1000 worth of BTC at 100x leveraged, and it crashed to $800, he would be negative $20,000?
Yes something like that. I've never heard of a broker offering x100 leverage on any kind of margin account though.
If he buys in at 1000 and it goes below 1% (990) his entire investment is gone.
Would he owe anyone any money after his investment disappears to nothing? Or does the pain just end there?
Yeah it's called a margin call.
So, this guys account could literally be at -$20,000 (Hypothetically)?
Could the exchange he was trading on sue him for reparations or something similar to that effect?
Not the exchange but whatever broker he uses to trade in it, yeah. If his broker let him borrow money to apply crazy leverage like that then he almost certainly has money sitting in a a margin account to pay for any losses.
But yeah a 20000% loss is pretty epic.
>20000% loss
We going to the moon, bois.
>moon
More like hell
The moon is underground I thought?
are investors in every financial sector this retarded or is it just BTC that brings out the stupidity and greed in people
I mean jesus it wasnt hard to tell that BTC is going crash down to ~900 again (and will proceed to climb and in a couple of months we will have the same situation again)
Play stupid games, win stupid prizes.
What's a good bitcoin chart for mobile that has it by minute, hour, day, week, month, and years?
Many of these websites are a pain to use on my stupid fucking iPhone.
I think they liquidate you before you owe more than whats in your account. They only have your email address. I mean, fuck anybody that would send you a bill. They know its a losing bet and thats why they lend you the money. Bitmex leverage amount is so crazy its like a scam for gamblers (aka dumb). If you are able to win you get crazy money on small price movements though. The volatility pretty much guarantees you will get liquidated at 100x
most likely a troll
No. He "would" have negative 19,000. But that doesn't usually happen, as soon as you lose your initial 1000 the exchange takes the borrowed money back.
Pretty common on unregulated markets of anything.
If, her position wasn't liquidated after the first 1000 were gone. And if he account went to -19000, that would be a 2000% loss.
>Pretty common on unregulated markets of anything.
Which is amazing that it's even allowed, because no sensible person would ever consider a x100 leverage to be an intelligent risk with dollars, but this kind of shit makes sense with memecoiners.
I still remember that thread last year where the guy lost 10k with darkcoin with some ridiculous leverage.
>amazing that it's even allowed
That is what the "unregulated" world means.
>x100
I already used 1:300 and made profit. But it was an exceptional case. I had a death cross, the short MA was more than two std from the long MA and volume was up 4 ~5(you read right) std. It was exceptional trade.