x100 leverage

>>2033795
What does this mean and how can I do it with crypto

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>>2033806
It's retarded. Basically you're taking a loan from the exchange based off of your deposit. So with $1 you can trade it as if you invested $100. But it's so fucking risky it's stupid. You'll end up owing the exchange money if and when the trade goes tits up

>>2033806
On kraken you can only leverage up to 5x.
It means you put your 1000$ down, and open a 5000$ position.
If you would make 50$ profit without leverage, you now make 250$.

But.. if you would lose 50$ you now lose 250$ AND your position will close when you hit the ground (if you lose your 1000$, not 5000$)

>>2033816
Oh yeah I saw someone do this with Robinhood gold and they had 700% losses. No thanks. I'll just stick with my compounding crypto gains. Just keep moving it around and doubling or tripling my lunch money for now

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>>2033828
>700% losses

Yeah, you are retarded.

>>2033795
If you have a consistent trading strategy you can turn your 10k into over 100k in less than 6 months just by getting a pitiful 10% gains per week.

No need to risk blowing up your whole account with leverage.

>>2033840
He literally owed Robinhood $4600 or some shit

>>2033850
>Wait for eth/btc to stop shaking prices
>Usually better from 5am-7am
>Get in the second you see it going up outside the trend, 5x leverage
>Set a stop-loss 2$ behind the bull AT ALL TIMES. This means you have to update the stop-loss every minute and to keep your eyes on the screen.
>???
>30-50% gains

>>2033895
The position closes the moment you get BTFO, so you can't get in debt.

>>2033909
Idk how he managed to fuck it up so poorly. Trading with leverage seems like something people with poor people mentality do.

>>2033816
>you'll end up owing the exchange
Kek that's not how leverage works larper

>>2033795
I love the picture. I fucking hate bitcoin compared to say ETH but I still love the picture.

>>2033816
If the leverage is high enough though, like $100, I'd do it. At worst I could lose my $1, but at best I could gain so much more.

For small leverage, I agree it's stupid. But if it were 100 or 250x leverage like some places have, then it makes sens.

>>2033909
There's no way RH margin works like that

So, trading options in a margin account? This isn't special, it's normal.

>>2033909
the broker usually closes your position if you blow your account, but sometimes they do not. If they do not close your position "losses can exceed deposits" and they will pursue you for the loss

>>2033951
Yeah, most people don't realize there isn't much the broker can do if whatever you bought blew up so hard a bunch of money was lost before the position could be closed.

Not getting blown the fuck out is kind of the critical aspect here. You drop 1$ in to bitcoin at 10x leverage, it gains 10% you only double your money. It loses 10% before you get there, you lose everything.

>>2033916
I thought we all agreed only people with poor people mentality trade crypto anon.

>>2033937
It all makes the exact same sense you dumb negroid. Be it 1, 5, 10, or 100x

That's like saying you would prefer rolling a dice 6 times to get a "6" than rolling it 12 times to get 2 "6"s even though the odds are the same.

>>2034031
No it doesn't.

If I have 250x leverage and stand to lose only $1, I'd take it. If the coin doubles, like so so many have recently, i get $250 for only $1 risk. If not, I lose at most $1.

Why would I do the same when it's only 2.5x? I could make $2.50 from it doubling. Big deal.

>>2034044
with 250x the value of the coin just needs to go 1/250 $ backwards for you to lose your dollar, but with 2.5 the coin can go almost down to half and your position is still open.

Low IQ posters need not appply

>>2034054
So? I couldn't give less of a shit about $1. If I buy a coin as its shooting up on 250x leverage, I stand a decent chance of it shooting up high enough not to go 1/250 below where I bought in.

Either way I'm only gambling $1 with a decent enough shot at making far more than that. It's worth it.

>>2034054
Yeah if you're buying and holding for days like an idiot.

I'm talking about throwing in a dollar on a coin that's shooting up, kinda like LTC 2 days ago, and taking out returns 5 minutes later.

>>2034065
You're not just risking $1, dude. You're risking $250 dollars. Are you aware that loans have to be repaid? The exchange will blacklist you forever. Possibly hurt your borrowing abilities in real life too.

>>2033899
You've got to think about trading extrapolated over many many trades. How many times can you do this before you get a false breakout it crashes and you lose your whole account?

Profitable trading is about risk management and consistency.

The key to trading on margin is to stay small. You never want to have more than 50% of your cash in use, and never more than a few percent used for each trade. That way, no single trade can blow your account out.

So even with a huge market downturn you can not only ride it out but it in fact only presents opportunity for you in taking advantage of the higher implied volatility.

I doubt that translates over to crypto currencies but it absolutely does with options as volatility directly feeds into option prices. Do crypto currencies have options? Because I'd trade them if they did and had enough liquidity to do so.

>>2034077
What the fuck? No, you're risking $1 you stupid fuck. That's the beauty of leverage.

You don't have to repay $250 unless the broker fucks up and doesn't liquidate you in time or something. You risk $1 but have the potential to make much more.

>>2034084
So what's the point in even using margin?

If you're using 1% of your capital on 5x margin isn't that exactly the same as using 5% of your capital?

>>2033895
ROBINHOOD GIVE YOUR 2 TO 1 LEVERAGE WITH GOLD, NO MORE. THE MOST HE COULD LOSE IS 200%

>>2034095
>You don't have to repay $250 unless the broker fucks up and doesn't liquidate you in time or something
>He thinks the broker can liquidate 250x leverage in time when daily coin volatility exceeds 5%. HAHAHA.

>>2033795
>>2034054
Ok I'm very interested in this, but how do I do it on crypto with ethereum, eth classic and any big volume coin?

I tried Poloniex and it only gives me 3x margin trading and if my 10$ coin dares to fall even 2$ then it cancels my position.
With crypto like eth always dipping that's impossible to do.

If I had bought Eth at 10$ with 100x margin then I'd be a very rich man right now.
But it takes at least a month and there's constant dips.

So if I put $1000 in polo and ask for an x10 leverage, I get $10000 to trade?
So if I put that on for example BTC and it drops 10% I lose my $1000 and my account get liquidated?

>>2034129
Correct. 10% of 10,000 is 1,000. The broker always takes your money first if you lose. They're not going to be nice and take back 8,000 so you can keep 1,000.

>>2034109

When you trade on margin you don't have to put up the full amount of capital for each trade. This allows you to use your capital more efficiently and make more trades than you could other wise.

If you then invest your cash fully will inevitably will get margin called and have to provide more cash to cover your positions.

If you stay small this won't happen and you will be able to use the margin and leverage to it's full advantage and not suffer the consequences of huge market downturns.

Its the classic mistake people make, that they fully invest themselves up to the hilt on margin and wonder why they blow their accounts out.

>>2034151
Might try dropping 1k buckers on this.
Trading shitcoins is super risky but this is like trading on steroids, sounds fun

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>>2034311
It is anon.
Too much fun id say.

>>2033937
wat

that makes less sense, the higher the leverage the lower the swing needed to knock you out of the game - you should only use very high leverage when you've got a very high probability of the move going in your favour

>>2034117
Bump.

>>2033795
Margin was invented for regular stock which isn't very volatile and where a 10% gain or loss in value is extraordinary as opposed to crypto which is incredibly volatile already.

Coins can easily double their value or even go 5x, 10x.
There is literally no point in margin trading them, not only does it actually cost you since you're paying interest, but you also risk losing your entire margin on the next dip which happens all too often with such volatile currency.

tl;dr margin trading in crypto is retarded, more risky and it costs you money.

WHO THE FUCK ARE ALL YOU PEOPLE WITH YOUR OPINIONS!?

And OP pls Gooby pls just don't. A buddy of mine also had the genius idea to leverage the way you did (100x if I remember correctly), lost everything in a jiffy.

Quote:
"I made 4K yesterday" - me: "You do understand that you're gonna lose everything in a bad speculation right?" - He lost it all

Have fun with Margin Trading on what I assume is crypto even though crypto is already so fucking volatile is moves with >10% per 24H.

Yes! Great tactic! Increase the risk on already risky assets to increase potential return!

WOW! You must be a portfolio manager for Morgan Stanley! Where did you get your degree? MIT? Harvard?

Go fuck yourself and show me some screenshots and explain your tactic if you are so full of yourself.

>Makes bold statement
>No information to support statement
>Could have explained general tactic
>Could have explained portfolio
>Could have explained average leverage
>Could have explained average profit
>Etc.
>No further info
>Post on biz

>>2034081

underated post

3k to 18k first week trading cryptos. Thanks margin. Obv if you don't have a clue about markets you shouldn't attempt. Emotions sway x(leverage amount) more.

>>2035742
I don't even have a response to this. How old are you?

>>2033816
>You'll end up owing the exchange money if and when the trade goes tits up

I always love when someone unknowingly demonstrates how retarded they are

>>2035707
>Wait for unjustified red
>Open position near bottom
>Stop loss right on the bull's ass
>ALLWAYS on the bull's ass
>???
>5x profit

>>2035816
Ok. Good luck with that. So that's your tactic?

>>2034044
New traderfags!

You can't take the full leverage!
So your calculation is wrong.

If you take full lecerafe just one tick against you and you have a margin call.

It is IMPOSSIBLE

>>2034044
>I don't know what expected value is
>I think margin trading is magic

>>2035829
That's the tactic for that specific circumstance

If you want the rest of my tactic list, it will cost you 1eth per page.

Where can I trade crypto with leverage?

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i turned 300 into 100k with no leverage

what now fagget?

>>2036480

That's nothing. I turned $250k into just over $1000.
Pls help

what sites can you trade crypto with lvg? also im in eu

Seeing a lot of conflicting shit about margin trading here. Can someone explain it to a tard?

It would seem that if you buy 250x what you can afford, and the price goes down you should be on the hook for the full amount; why does it appear that you folk disagree with that?

>>2036618
The amount of thing you're holding gets autosold when the loss is equal to your capital investment amount, and the exchange gets all their money back, while you lose yours.

For example, John Doe has 10 bucks, he uses 4x leverage of his entire balance to buy $40 of btc on Monday. Tuesday, btc price falls by 25%; The exchange sells the now $30 worth of btc on behalf of John, and reposesses John's $10, such that they are out no money. Alternatively, if on Tuesday the price of btc rose by 25%, John could sell the now $50 worth of btc for a $10 (100%) return on his original holding of $10, while if he had not used leverage, he would have made only $2.50 (25%) return.

Did I get that pretty much right?

>>2035742
Please do another 1000 trades using this method.

>>2036772
>>>
>Anonymous (ID: CnLSZTHC) 05/06/17(Sat)00:59:54 No.2034081▶>>2035720
> >>2033899
> You've got to think about trading extrapolated over many many trades. How many times can you do this before you get a false breakout it crashes and you lose your whole account?

How do you get in on this ?

Okay okay.

... okay.
Massive newfaggot to trading here.

You're telling me I can, say.. drop $1,000 into a trade, but have it read out as $100,000, and then... let's say it goes up 10%...

do I just have to pay them back the $99,000?

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>anything less than 10k
wow good thing I have twenty times more than that from my oh so terrible "wagecuck job" so I don't have to resort to measures that will RUIN MY LIFE

>>2037244
> wagecuck
> "life"

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>>2037247
>dakimakura collector and sonic fanart enthusiast
>authority to decide on what is or isn't a desirable life

>>2037247
same

>>2037205
What the fuck is wrong with biz, full of tards.

>>2034114
wow. everybody look at this.

>>2033909

Sure, that's exactly how a margin account works. They are a pure arbitrage opportunity.

>>2037247
kek

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>>2038034
>What is a stop-loss
>What is a margin call
>What is a stock and how do I make one?

>mfw gambling addicts come here to brag about their successful trades but there isn't a peep out of all the ones who lost

PUT EVERYTHING ON MARGIN YOU CANT LOSE

>>2038088
History is written by winners anon.
See you on the other side.

>>2038105

my point is that there's a bias in reporting here. no one can predict the markets. in the end holders come out on top.

>>2038088
Lol there's shitloads of BAWW in here - mostly over people being panicky cunts who buckle under slight pressure and then realizing mere hours later they fucked themselves.

>>2038114
You can be a holder and a trader, it's just now I'm holding 20BTC instead of 1BTC.

You can make money actively trading by finding one specific high probability situation and just grinding it over and over with a decent risk management plan.

It's not exactly fun or exciting but it compounds into big gains.

>>2038114
What if I opened my position at 1$ at 5x leverage and still have it open to this day?

HOLDING ON STEROIDS

>>2038155
Still a rookie; what moves would you recommend as both a trader and a holder this week? I'm trying to make them gainz, especially when gemini and coinbase verify my identity so I can actually get in on this action with the money I can afford instead of a bullshit $100/wk limit

>>2036480
Explain or this is bullshit

>>2038165
In the US at least, there's a 28-day limit within which you have to close your position, so margin trading is really not a tool for long-term holding. If you're going long on something, then it might be attractive to try and open a "long"-leverage position, but if short-term volatility within your 28-day period causes the asset value to drop temporarily, then you lost money.