Margin Trading

Holy shit boys, Margin trading.

I went from making only 50% a week, to 50% a day, by margin trading short selling.

Fucking try this shit boys. the oly problem is that the list of coins to choose from is small

Other urls found in this thread:

en.wikipedia.org/wiki/Interest
twitter.com/AnonBabble

I just enabled this on gdax why didn't I do it sooner

POLO IS FUCKING SHIT REEEEE. It's so slow when market's are swinging and that's the best time to make money on margin.

youre evolving

Could you please explain margin trading to a rere like me

1. You get loaned a shit ton of coins
2. sell all the coins you think are going to drop in price
3. buy back the coins after the price drops
4. close your position, make the profits

remember the house always gets paid first

>Veeky Forums discovers margin trading
I'm opening a long position on distorted, red Pepes and Wojaks. It's going to moon :^)

>buying at the all time high

>at 5x margin

Which box did you check for the ECP Declaration?

Ah nevermind, that only applies to USD pairs.

The first one. I could have over 5m in btc for all they know. Just don't fuck up and lose all your money lol

if I'm wrong I'll just mine myself out

or setup a new account lol

What are some methods you use to achieve these gains?

Wondering for a friend.

me too pls, I understand the concept but would appreciate a screenshot of the execution, preferably on kraken

buy low, sell high

how the fuck do you know what low and high are

This doesn't really help. My friend already knew that.

I prefer butter, thanks

>just dont

kek

borrow shit at x price, sell, when shit goes down at 0.6x price buy back and pay you loan

nobody knows, you have to just watch charts all day and use indicators, read news, and use your own intuition

cant wait for the REEEE FORCED LIQUIDATION threads

Did you start winning right away just reading infos or did you build your experience from your mistakes ?

you have to learn from mistakes. its really the only way to truly learn

ive made a lot of mistakes but never repeat them

So is there a way to do the loaning?
I mean, I will get my money back for sure right?

:^)

These guys are nice

Which is the best exchange to use for margin trading? I hate using Polo it always freezes on me.

Bitfinex, because they allow you to margin trade USD pairs without verification at 3.3 leverage

So you get to keep all the coins you made in profit?

Thanks

Is it legal on bittrex? I didn't learn anything on their website about it.

That guy described short selling, which is just one way of margin trading.
Long = bet on price rising
Short = bet on price falling

Long position on A/B:
1. Borrow B
2. Buy A
3. ... wait ...
4. Sell A
5. Return B

Short position on A/B:
1. Borrow A
2. Sell A
3. ... wait ...
4. Buy A
5. Return A

I mostly lost with margin.

No risk, no fun :^)

how are you an ECP?

What's an ECP?

he isn't he lied to them D:

>50% a day
That's 726290740000% / month compounded.
You can turn $1 into 726 billion $
Not bad!

yeah but you're a fucking retard

threw my xrp into margin last night and made 1.5k

if i held normally i wouldve only made like 300

margin is ridiculous

I might be a retard but I'm having trouble understanding the long position you described. After step 4 (selling A) would you then buy more up of B with profits made from A before returning? Otherwise what would be the need to borrow any B at all?

You borrow B so that you can use money you dont have

margin offer like triple what you own

Ahh ok that makes sense thanks. So B would typically be BTC/ETH?

My largest margin position to date, almost half of my capital.

I usually never trade crypto/crypto pairs on margin. It's super risky because you make a double bet essentially. But in this case BTC/USD spiked unusually fast while ETH/USD dropped unusually fast at the same time. I figured ETH/BTC is almost sure to go up.
Stop-limit order set. Wew

Be VERY CAREFUL with crypto/crypto positions like ETH/BTC.
It's much much safer to trade ETH/USD on margin.
Go to Bitfinex for fiat margin trading without verification.

yeah or whatever your exchange offers

on polo you can get ETH, maidsafe, factom, stellar, and more on margin

can i even do this on bittrex?

>after something drops, it goes up!

wow who knew

there is this one episode of spice and wolf where shorting is explained quite well

I dont know, I think someone here said you could but I cant find it on the site

Post your margin trades :)

Who the fuck is going to loan thousands of dollars to a an anonymous internet person?

other anonymous internet people

I don't get why anyone would take that risk. What are they getting out of it? A few percent? It's at the risk of the person just never paying it back.

What is stopping you from borrowing the crypto, then just transferring to another of your wallets and telling the loaner to fuck themself?

I'm currently lending $4000 to margin traders

polo wont let you, and if you're about to lose all your leverage they liquidate your account

>What are they getting out of it? A few percent?
0.15% / day currently, or compounded
4.5% / month
72% / year

>risk
Exchanges liquidate margin positions before they default.

>What is stopping you from borrowing the crypto, then just transferring to another of your wallets and telling the loaner to fuck themself?
The exchange. All the mechanics behind are margin trade including the loan are not directly accessible to users. It's automated.

Yeah, but you're getting paid back in the coin you lent out, which has just decreased in value.

I'm lending USD

I sell around 10-20% of my crypto gains to USD and offer loans.

Lookup the term "margin call".

If you're going down in flames the exchange sells all your shit and pays back your creditors.

That's not shorting, then. Unless they're shorting USD, which is retarded.

Long BTC/USD = take USD loan

I'm providing that USD at around 4.5% / month
Guaranteed income with virtually 0 risk

As soon as my lending funds reach $50000, I can live off the interest alone.

this, whats the benefit for users and exchanges to do this?

Can any non-autists explain what margin trading is in a few sentences, as well as the risks? Or do I have to open up a new tab and Google it?

Try Reddit ELI5

So if I loan $5k to someone, they use it to buy Sia or some other shitcoin and it drops in value by a factor of 100, I get back $50?

where can you lend btc? Sounds comfy

en.wikipedia.org/wiki/Interest

Poloniex and Bitfinex
but BTC lending rates are usually much lower than USD

No, if you lend $5k to someone, you get back $5k + interest, always.

It can't be always. your lack of honesty leads me to suspect shilling.

Is there a margin call as soon as it's a losing position? Even then you can't make your interest.

Can someone explain loaning?

>It can't be always
Why not?

>Is there a margin call as soon as it's a losing position? Even then you can't make your interest.
The exchange then force sells everything before the loan would default, and pays the creditor.

The trader can lose nearly 100%. Margin trading is risky. Lending is not.

Does the margin call force-sell lender assets as soon as the lender is upside down on the loan? How is the margin. All triggered?

So wait... If people are loaning, and all the margin traders are losing, who is paying back the loaners? Mathematically this doesn't make any sense to my small wojak mind.

Explain faggot.

It's simple. You offer X amount of BTC or USD with a certain interest rate.
Margin traders take that loan.
The exchange ensures that their positions are liquidated before they lose more than the loan is worth.

>Does the margin call force-sell lender assets
Yes. It depends on the exchange and leverage but usually when the position loses around 50-80%, the exchange force-sell the trader's coins to pay back the loan.

It's in the exchange's interest to avoid defaults.
The exchange takes about 15% of interest earned, so they want happy lenders.

So you can lose up to 20-50% by those rules. That's not risk free.

You cant margin trade without first having collateral

Underrated

your a dorable

No, but I'll stop explaining now because it's against my interest to convince you of lending. The more people lend, the lower the interest rates. I want high interest rates, so please don't lend.

Understand margin trading before thinking about lending.

Example:
1 BTC = 1000 USD

Trader has 1 BTC
Trader goes long on BTC/USD at 3x leverage
Trader borrows 2000 USD
Margin position worth 3 BTC = 3000 USD
Now BTC/USD falls by 50%
Position is now worth 1500 USD

Exchange liquidates
Exchange returns 1000 USD to creditor

Trader ends up with 500 USD

So bring the lender, the debt that is owed to you is an asset. Can you take that debt owed to you, and leverage it as collateral for your own margin trade from another lender?

Fee fi fo fum, I smell the blood of a shilling chum.

Yes, I'm shilling, please don't lend.

So the creditor who lent $2000 only gets $1000 back when shit hits the fan?

My bad. Correction:


Trader has 1 BTC
Trader goes long on BTC/USD at 3x leverage
Trader borrows 2000 USD
Margin position worth 3 BTC = 3000 USD
BTC/USD falls by 1/3
Position is now worth 2000 USD
Exchange liquidates
Exchange returns 2000 USD to creditor
Trader ends up with 0 USD

Thanks lad. You've convinced me to loan for some interest. Seems less nerve racking than day trading.

>0.15% / day currently
Which exchange?

What the fuck? Of course its always. He gets such good interest rates because bitcoin exchanges are not the securest and safest place to keep your money. On the other hand he probably gets a better interest rate than in any other Stock exchange