F

Wow they quickly pushed the price up past 10k to liquidate shorts. Didn't see that coming. Oh wait I did. Almost exactly. Sell now faggots. Two weeks from now you'll be bathing in blood. Cap this.

sure thing user, take a seat. I'll explain it with a story

>Be me
>Be trading around china FUD time
>trading on bitmex with 0.1btc
>Open a short position (this is basically selling borrowed stock and betting on the price going down. When you close a short you're essentially buying the stock back cheaper)
>turn 0.1 btc into 3
>Holy shit im a genius
>open short knowing exchanges are going to close
>Price reverses and i get liquidated
>end up with 0.01btc

Trade on magin (borrowing at x3 x5) but dont do x50.

What people are trying to do is predict the top for btc and then 'short' it...because price drops fast and you can make a lot doing this. Get it wrong and youre fucked.
Biggest liquidation was 47mil

Best twitter account by far, followed by DJT in a distant second

I've been targeting salty nocoiners on Twitter and encouraging them to look up how to short Bitcoin so they can make money when bitcoins bubble pops

The other reason to margin trade crypto is its the only way to increase your BTC stack.

I've had a never ending series of 2x longs on btc since january. It's never dipped more than 50%.

Guy had a short of 2,951,439 bitcoin. It got margin called at 11032.5 to where he couldn't reach his maintenance margin. 100x margin would be around 29,514 btc that was used as margin here.

Thanks bros. I understand a bit more now. I will read up on this stuff. I can't see myself getting involved in short positions though, those scare the fuck out of me.

Only way to increase your stack? I never shorted or longed a single time.

Buying altcoins is another form of gambling, yes a few moon missions are obvious (NEO was pretty obvious), but often times its a risk, just like leveraged trading.

Ur smarter this way

Its pandoras box. Dont do it

F

This is fucking retarded. Don't people realize that the price fluctuates within the exchange and it is not universal? When you set up a margin trade position, it can be seen by BitMEX staff and they can artificially move the price in the desired direction (by the help of a whale or just type in numbers).

How do I read this? Is that short position in bitcoin or USD? Did this guy just get liquidated for 29,000 BTC or $29,000 USD?

Apples are currently $1 each. I believe the price of apples is going to go down so I find someone with 10 apples and promise to repay them 11 apples in 1 week.

I immediately sell the 10 apples for $10 and wait. I'm now "short" 11 apples because I owe someone 11 apples but have 0. Suppose in 1 week's time the price of apples has crashed to $0.50. I buy back 11 apples for $5.50 and repay my loan. I profit $4.50 total. On the other hand, if apples have increased to $1.50 each I must purchase 11 apples at $16.50, repay my loan, and will have lost $6.50. This is "short selling" or opening a "short" position".

Margin trading refers to borrowing money to take on larger investments, with increased risk in exchange for increased reward. Suppose you buy/sell real estate. You believe strongly that the housing market will double in the next 6 months but only have $20k capital. You could buy a $20k house, wait 6 months, sell it for $40k and profit $20k. Not bad.

But you want more. So you go to your friend and ask to borrow $80k and repay him $81k in 6 months. Now you can buy a $100k house, sell it for $200k, repay your friend $81k and profit $99k! That's x5 what you'd be able to make using your own money. But your friend is worried the housing market might crash and he'll never see his $81k so he lends you the money on 1 condition: if at any point the house you purchase drops to $81k you must immediately sell it and repay him in full. Your friend assumes 0 risk. Notice how only a 20% dip in the market now results in a complete loss of the $20k while before (had you simply purchased a $20k house) you'd only be out $4k. This is trading "on margin" and can be used "long" as explained or combined with "short selling". A "margin call" is when your friend (typically a broker) literally calls you on the phone and forces you to sell at $81k - nowadays "margin calls" are electronic and automatic.

It was USD. Because it says "Buy". When you short Bitcoin, you buy USD (in that trading pair).

Anyone else think of diarrhea whenever they read the word "liquidate?"

Surely it was $2.9m and not 2.9m bitcoin, right?

So the guy lost $29,000 here?

someone opened a short for 2.9 million coins that got liquidated at 11032.5 (the stop loss set by the retard, or the level at which the margin in his account was zero)

so how much money did he lose?

>it can be seen by BitMEX staff and they can artificially move the price in the desired direction (by the help of a whale or just type in numbers).

fucking this.

margin trading on completely unregulated exchanges.

fucking crazy.

i'm sure it works fine as long as you are making the same bet the exchange wants to win...

If your persuasion skills were high enough, could you convince your broker not to liquidate you in the good old days?

nah $2.9m is nothing special, certainly not enough too warrant a tweet, this was a $30bn liquidation

How do i be the guy that loans the apples? Seems win win

No. In reality the broker is the one holding the deed and is calling you to inform you of the impending sale. To stop the sale you'd have to double down and add more money to your brokerage account. You could tell the broker "No, wait! I know it's going to bounce back any day now!" and wire your broker another $20k. Now he won't sell unless it drops to $61k - but if it does you'll be out $40k.

Good sheit, can you do an exemple such as the one of this thread with btc and x5 leverage? Thanks senpai

nvmd i got it my man

discordaDOTgg/dJ5DqGr
Join this server for no reason at all.

Just find an exchange which offers it. The rates aren't going to be anywhere near 10% but it's risk-free unless the exchange goes under and runs with the cash.

poloniex.com/lending#BTC

Is this fucking real? Did someone just fucking lose 30 billion dollars

Holy fuck. Amazing and awful at the same time.

At minimum, or possibly up to half or a third of the lost amount. Almost no one would open that much money on a 100x so it's probable that the guy lost a lot more than 29k

This is how I lost 90% of my stack on a retarded series of shorts :(

is it possible exchanged are rigged to liquidate very large margins?

Bitmex using a 'mark price', i.e. you only get liquidated if the average of like 10 other exchanges reaches the liquidation price.

No, Bitmex couldn't pay out that much if the person was right, they don't have enough liquidity. The max you can leverage is for 200 BTC, which is exactly the price in the tweet in USD,

>0.008% rate
wait that's nothing

So someone was going to buy 2.9 million worth at the price of 1.1032?
And now they couldn't?

How is this #rekt?

What happens if the guy was right on his call? BitMex owes him 2.9m BTC? Which is 18% of the total supply? I don't see how that's possible.

What'd you expect? You're not taking on any risk.

That's a 48 hour loan. 0.008% every 2 days is still 4%+ annually.

No! He borrowed alot of money. They owe him as much as Bitcoin would cost, but minus what HE owes.

meant for

No, someone bet 29000 USD that BTC was gonna go down, if it went up by even 1% they'd lose everything. It went up by more than 1% and they lost 29k.

The 3 million means that the 29k is TREATED as 3MM, aka, 1% of 3MM = 29k, so they lost everything.

Likewise if it went down, for every 1% it went down theyd MAKE 30k.

I see some demands pop up at 1-2% sometimes, is that just someone fucking up?

Okay Imagine I ask my parents for 100 000 euro , if I make them 2 000 000 euros after a year. What would be fair for them to get ?

Depends on how much you love your parents. If you are honest, you should pay them interest + inflation rate. Inflation rate is usually 10% per year. Interest is usually 7% per year. So, you give them back 117000 EUR. But that is they have given you money to hold, not for extreme emergency. In that case, interest rate drastically increases, because, otherwise they would have used that money or invested in what they seem to be profitable ventures.

not sure if you're retarded or if I'm being baited, but a $30bn liquidation would crash the market instantly. Look at the books.

I would give them like 600 000 euros

the sad part is that they mistimed the drop

Depends what you promised them in the event of you losing their 100k - which is far more likely than achieving 2m.

The guy lost $29,000 (assuming 100x leverage)

>leaving BTC on exchange
>not taking any risk

Yup, they almost legitimately made 250MM on a 20k bet.

what?!? no, the most they would have made is 2.9 MM and that's if bitcoin went to zero

But, surely they owe someone millions?

>29000
Doesn't it say 2,951,439, so almost 3 million?

I made a typo, 250k lol. 500 now that BTC has dipped 20%.

Leveraged x100, so 1/100th of the bet. I.e. 29k, if BTC goes down 1%, I double my money, up 1% I lose everything.