just attempted my first margin trade with 2X leverage, i have no idea what im doing. my position is closed now i thought i would have lost more but it looks like i only lost a dollar or so ?
at what point would i have got my liqudated when that percentege thing say - 100%
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>at what point would i have got my liqudated when that percentege thing say - 100%
yes.
2x leverage isn't all that risky. you'd have to be down 50% to get liquidated.
so since i tried to short btc at $11050.
btc would have had to reach $15500 or so before liqudation
>user owns 5 ethers
>user wants to lose this ethers very fast, so he decided to do some leverage trading
>puts 5 ethers in a 5x leverage long position
>user is now effectively trading with 5 + 20 ethers
>if ethereum goes up 10%, user earns 2,5 ethers
>however, if ethereum goes down 10%, user loses 2,5 ethers
>but remember, user only owns 5 ethers, the rest belongs to the exchange
>suddenly, bear market sets in, and ethereum goes down 20%, and user is down 5 ethers
>user's position is now being margin called, and his position is about to get liquidated
>the exchange doesn't want to lose their ethers, u know
>user loses everything
that story brought a little tear to me eye
There are 3 advatanges of margin trade
> being able to short
> being able to buy/ sell more than you have on equity
> being able to trade pairs where you don't have any of the coins (you deposit EUR and trade XRP/BTC pair)
What is your equity ?
you are liquidated faster. It's not when your loss gets to 100% of you equity but more lique 70/80%
ETH has to go down 15% in your example
depends on the exchange, i just wanted to explain the leverage part, not the liquidation part
>just attempted my first margin trade with 2X leverage, i have no idea what im doing
this is why platforms have sim trading
wtf I hate exchanges now
What exchanges do you know which allow margin trading? I know about Poloniex, but it requires verification.
>ethers
OP is using Kraken.
Kraken but I think it also requires verification, but to be fair if you find an exchange that doesn't its likely a scam.
How so? if user is stupid enough to margin trade or use leverage and loses his shit thats not the exchanges fault. The exchange isn't as stupid as user and when user is about to go under they save themselves.
Why the fuck would they take a loss because some dumbfuck decides to margin trade or use leverage?
I just remembered Huobi also has margin trading, though I haven't tried it.
Some Forex brokers now support trading cryptocurrencies. Has anyone tried any? Should be convenient to be able to use Metatrader.
you shouldn't trade ANY margin until you are at least a couple of years experienced trading
guaranteed you blow up
not much thats why i need to use leverage to get up
so do you get to keep the other 20 to 30% then after liquation ?
Does no one else use this site? Why the heck are you missing out on these gains anons? BitMEX (the "mex" stands for Mercatile Exchange) is the only exchange in the world that offers 100X leverage.
Let me explain what this means. So lets say you were to have longed (placed a buy order) for BTC at $10000. Let's also say you only have .01 BTC to trade with, or $100 worth. With .01 BTC you can buy 1 BTC. Then for every dollar BTC goes up, your position is worth $1 more. Say BTC goes to $12000, if you close your position you then get that $2000 in profit paid to you in BTC. I started with .03 BTC and in a week I've turned that into .35 BTC using basic TA. I always thought TA was just a meme but it actually works. I use Bolinger Bands and Fisher Transform. I would suggest you learn TA before you start trading. I started out losing but haven't lost since.
You want a moon mission? BitMEX is your moon mission. Euros can sign up freely but US users are banned(Just sign up with a proxy and then you can login from a US IP with no questions asked). If you're going to sign up use my reference code, using a reference code gives you a %10 discount in fees. This may not sound like much but it's saved me hundred of dollars in the past weeks: bitmex.com
It's interface is amazing and the liquidity it offers is completely unmatched, it's the biggest exchange volume wise.
>so do you get to keep the other 20 to 30% then after liquation ?
Depends, the 70/80% thresold trigger the liquidation, which is done at market price.
On illiquid market and/or high volatility, you could be liquidated close to 100% of your equity. (often called short/ long squeeze, because all the margin traders are squeezed like lemons)
The 20/30% is actually a safety margin chosen by the exchange.
They even have a testnet for you to trade and train without risk of loosing real money.
testnet.bitmex.com
Can margin trades be straddled, like in an options spread? Say youve got 10 ETH, put 5 ETH long and 5 ETH short, watch the market and pull off the wrong direction?
I've only done margin trades in commodities. I doubt I'd ever trade crypto margin, just wondering
>Fisher Transform
Ñice kek, señor!
Using bollinger bands as an indicator...credibility lost
> O N E H U N D R E D
man i cant say i have the Cojones for that
also curious about this.
why not set up a position in both directions and when you see its going to break out in one direction pull the wrong order and ride then correct one...
>Stradle trades
>Market goes up, 2% so you close the short order
>Wait, the market fucking flips itself so it goes down 10% all of a fucking sudden
>You are now losing a shitload of money because you closed your short position
Yeah but a 100x leverage also means I can lose basically everything I have, which is not cool.
You can go x100, doesn't mean that you must, start with x2 and always give yourself enough headroom for mishaps. I prefer to use cross margin instead of isolated leverage to achieve that.
Train on the testnet and see how it goes.
If you'd do that your profit and loss would always be 0% (I guess)
OP are you even including the daily fees? Because Ive never seen bitcoin margin trading without massive fees
Where can I find that testnet (demo?)?
On Bitmex usually when you short you actually lock in profits if you can hold your position long enough.
See
Well yeah if you held both positions til execution. My theoretical scenario was to hold both long and short during a flat market and attempt to catch the breakout, selling the losing side when confident of the breakout direction.
I'm sure somebody will offer options trading on crypto someday and this situation will be easier to do for the risk-averse
Whats up with the chart on the testnet? its completely flat, you have to zoom waaaaay in and then you only see about 5h worth of chart
What contract?
Charts are powered by tradingview
BTX and also this interface is complete garbage wtf...
>this is why platforms have sim trading
it's like getting ready for tour de france with training wheels
you absolutely have to get raped by margin at least once and earlier it happens the less money you'll loose
It's not an interface for normies, it's for pros, are you and GDax/Bittrex type interface amateur? you can use NinjaTrader if you want bitmex.com
Its not like i've come from a trading history, I just buy low and sell high on altcoins and thats it.
watch and learn
me neither but I'm eager to learn
so if i open a short position on btc with .15btc with 2X leverage i am effectivelly trading .3 btc yes ?
and i heard kraken is going to turn alt coin margin trading next month anybody know anything about that ?
You buy 0.3 BTC with 0.15 BTC on x2 margin, you have to place the 0.3 BTC buy order other wise you would trade 0.15 BTC with 0.075 BTC of your own assets.
Ah alright thanks
no, prob be safe on there.
im confused, i just opened a position with a sell/short order with .15btc 2X leverage. i should be trading .3 btc no ?
nevermind i get now