F
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Evan Stewart
Other urls found in this thread:
discordaDOTgg
poloniex.com
twitter.com
Gavin Wilson
I still don't understand margin calls or any leveraged trading really.
Bentley Ward
Neither does Veeky Forums
Alexander Collins
Me neither really. Someone explain the BitMexRekt tweets so I can laugh along.
Christian Ross
JESUS! LMFAO
Ayden Barnes
I'm positive bitcoin is about to go up.
I only have 1000 USD, I go to you and say: give me 100K worth of BTC. If the price of BTC drops 1% I will sell all the BTC you gave me plus my margin (1000), therefore you have nothing to lose (bitcoins will sell for 99k), however if the price of BTC goes up, I get the increase (1000 USD per 1%).
It's not that complex.
Austin Jenkins
Further explanation, the person I posted was so confident Bitcoin went down, he bet at least 29,5439, and at most 1.5MM USD that it would go down. And lost it.
Jaxon Mitchell
Short - betting the currency will go down from its current price in the future
Long - betting it'll go up
When you see someone get liquidated, it means they've made the wrong bet and lost all their money. Bitmex offers up to 100x leverage (100 dollars for every dollar you bet). So likely, this person lost about $29000.
Jason Davis
>Be Exchange
>I got 100 BTC
>You have 1
>Damn I wish I could have accelerated gains
>Ding.wav
>Open Margin Account on Whatever Exchange for 10x Margin
>I'll loan you 10 btc since you have one
>Charge you 35% off the top
>Buy 10 BTC.
>Goes down 1%
>Lose 10%
>You're Done Son
>Margin call
>You just lost half of your investment in a matter of minutes
Jonathan James
Leveraged trading originates from forex which typically has very small movements (less than 1% in a day).
Since an exchange knows that forex moves very slowly, they will allow you to borrow money to trade in it. If I have $1000 in funds, the exchange knows it can lend me $100k to trade forex, with minimal risk that I can't pay em back.
A margin call or liquidation happens when unexpectedly the price moves more (and in the wrong direction) than my funds would allow. It's basically an insurance policy for the exchange so that they aren't left with people who can't pay their debts. Whenever someone gets margin called, it usually means they have lost all their money.
You have to be a special kind of greedy and impatient to margin trade crypto, since it is already extremely volatile. That's why it's so funny when people fuck it up and get liquidated.