Guy loses 90k in 5 mins

Didn't Metaverse get fucked as well?

Damn I really should store some dollars and place a stupidly low buy order. It is bound to happen again.

Margin trading is the most retarded thing you can do. You might get lucky a few times but eventually you'll blow yourself out and lose everything.
The key to making gains is to hodl and be patient. Maybe buy dips and sell profits.
Can't do that with margin trading. Every hodl position in margin will eventually blow up

Serious Question, why not place Buy orders in advance to make big gains on flashcrashes?
Do they happen often?
ie: pick 10 coins, put unreasonable low buy orders on each, wait for flash crash...profit?

might as well buy the lottery

This is why it's important to have regulated markets and why unregulated cryptocurrencies will inevitably fail. I'm only here for some quick cash speculation.

I do this. It rarely hits, but it's an amazing payday when it does.

>We all know that many of these Crypto exchanges can't be trusted

So, why the fuck this faggot held his money there?

If there's a big position in the Forex with a stop, the price will try to get there. Billion dollar options expiries regularly get btfo, even central banks can get caned. Welcome to markets.

If you look at the complete order book you'll always see people placing large buy orders at the bottom in case of flash crashes.

Bitcoin is already volatile enough as is. That's why margin trading crypto is retarded as fuck.
Might as well sell your house to bet in all on a single number on roulette.

Sure your gains would be absolutely astronomous but most likely you'll just lose everything

You just don't want us to get rich, fuck you.

reading through, i'm guessing the guy is a pretentious douche.
>vacation on thailand
fucking cunt. i wonder how much he did lose, i mean how much he deposited. if he just got lucky like most retards he probably lost nowhere near 90k

Bitfinex has no stop loss? Fucking retarded if so

Do stop losses even matter in case of market crashes?
I mean even stop limit orders.

>trading on margin
>on an unregulated exchange
What the fuck did he expect.

Regulation will not stop flash crashes. It happens in regulated markets as well. It happens more often in crypto because everyone is always extremely net long and there's is very little liquidity. A small correction and margin calls start cascading selling. Regulations will not prevent this. Dumb money needs to stop buying ath with leverage and liquidity needs to increase to reduce chances of flash crashes.

It is possible exchanges themselves using insider knowledge can trigger liquidation cascades and profit off them.

Margin trading is bad

Margin trading on bitfinex is just stupid

They are clearly manipulating the market and stealing people's money

I guess closing your position at a point that you wont get fucked by leverage is never bad...

The fuck is that question? Give me your money holy shit

>reee i lost pocket change money i want le regulatuons reeeee
stinky normie

This

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Actually my question wasn't about risk management and putting stop losses but about the sheer force at which the prices falls would render stop limit order completely useless.

For instance, you're long with leverage on OMG, Bitfinex dumps it's stash with a market order that walks down the order book from 40$ to 3$, your stop limit order to sell at 35$ doesn't matter anymore because you're liquidated almost instantly, does it?

>those comments

Twitter.com/bitmexrekt seems to agree with you

kys

You cant regulate human stupidity

Can you maybe link exames or give examples please, v. interesting.

>Margin trading shitcoins

margin trade neo lmao.

cmon man. you were a greedy fucker and lost.

I just want to point out that this can easily be done by users, not Bitfinex. Often the volume in these books is not that high and actually someone with relatively little money can cause a flash crash.

Keeping in mind that Bitfinex allows a 3.5x margin and a loss of 15% will result in a forced liquidation from your opening position. So all someone has to do is drop the price by 15% to be almost guaranteed to cause some serious domino effects and crash the market.

I've written about this before here, where I break it down step by step by using the GDAX flash crash as the example.

Looking at the order book of NEO/USD on Bitfinex right now, it's not that deep. To cause a sudden drop of 15%, you need to sell approximately 34,000 NEO, which is approximately worth $1m right now. You might be thinking, hey ho, $1m is a lot of cash for someone to play with! Well, actually with margin trading, someone may have a position open of around $300k of their own but on margin of 3.5x, resulting in a position holding $1m worth of NEO. The dude decides to close that position immediately in a market order? Sudden drop of 15%, high possibility of cascading liquidations from other margin traders leading into a full on collapse. Even a sudden drop of less than 15% can cause a crash in some circumstances.

If you think $300k is a lot to play around with on margin, you are underestimating how much money some people have made on crypto over the years. They are well aware of how margin trading works and how causing flash crashes can be super profitable if they have orders in at low prices. They do this on the micro scale all of the time by dropping it far less % in the hopes of causing some liquidations or stop loss orders to trigger.

I'm just saying all of this because it's not fair to put the blame on a conspiracy by Bitfinex (though I've had my concerns with them over the years) when the simpler explanation is a user caused flash crash, which are not so uncommon in margin trading.

Just posting a reddit response in a reddit thread, friendo

EDIT: Thanks for the gold, stranger!

"Secondly, the “no hot wallet” setup that is at the core of BitFinex’s design, although admirable, has a problem of its own: if, over the course of one day, it happens that users are consistently buying more BTC than selling, or vice versa, then in order for BitFinex to be able to honor all of its users’ positions it needs to step in and act as the counterparty to some of its users itself. This kind of setup is known as a bucket shop and is heavily frowned upon (and in many jurisdictions even illegal) because it creates perverse incentives – the shop can potentially make an order on the markets large enough to significantly bump the price up, liquidate all of its users who had opposite positions at high leverage, and keep all of their funds as profits. Even if Nicolle does not want to create a bucket shop, given a no hot wallet setup Bitfinex may have no choice but to periodically temporarily become one."

archive.is/aKILq

Somehow I'm thankful I'm brainlet enough to not understand margin trading. Most I've done is buying REQ low and selling high. But I usually just hodl.

Stop losses often cause flash crashes
One massive stop loss activates and then it causes a chain reaction flattening the entire buy book

>hnnnngggg free money
>omg i'm gonna be so rich
>i'm an investing genius

brainlets get rekt margin trading, what else is new?

S E E T H I N G

...

Order books on Bitfinex might be much thinner than reality too.

medium.com/@bitfinexed/fake-it-till-you-make-it-when-bitfinex-themselves-used-to-spoof-their-entire-orderbook-18294585338

>the money is not lost it just belongs to someone else now