Thread replies: 5
Thread images: 1
Thread images: 1
File: 1442706395184.jpg (151KB, 814x545px) Image search:
[Google]
151KB, 814x545px
Can I use the same asset for collateral to my margin account that I then invest in?
I can on Poloniex, because it will allow me to use ETH to margin a long position on ETH, but the margin account value is calculated in BTC-- this seems to effectively increases my profit/loss acceleration even more than the 2.5x leverage provided to me.
Thoughts? It seems like you could do this with anything. If you wanted to get more 'leverage' than a broker provides, just use the underlying itself as collateral.
>>
>>1821050
This is accelerated faster on a loss. Your collateral quickly becomes a margin call on a reasonable dip.
Most large scale brokers only let you margin with 'stable' assets.
>>
>>1821050
Depends what the asset is. What are you asking about specifically outside of ETH or BTC?
>>
>>1821070
My experience with it is longing ETH using ETH as margin. I don't know what else you could do it with
>>
>>1821182
Margin is a concept that applies to all exchange traded assets.
Margin rules depend on the credit risk associated with the asset. Something like a futures contract requires cash margin to trade because the exchange needs to guarantee liquidity and prevent people from defaulting on their contracts.
Stocks can be margined as a way to use leverage to increase profits or short sell.
Thread posts: 5
Thread images: 1
Thread images: 1