Margin Trading

I just enabled this on gdax why didn't I do it sooner

>>2532355
POLO IS FUCKING SHIT REEEEE. It's so slow when market's are swinging and that's the best time to make money on margin.

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>>2532379
youre evolving

Could you please explain margin trading to a rere like me

>>2533020
1. You get loaned a shit ton of coins
2. sell all the coins you think are going to drop in price
3. buy back the coins after the price drops
4. close your position, make the profits

remember the house always gets paid first

>/biz/ discovers margin trading
I'm opening a long position on distorted, red Pepes and Wojaks. It's going to moon :^)

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>>2533194
>buying at the all time high

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>>2533217
>at 5x margin

>>2532379
Which box did you check for the ECP Declaration?

>>2533249
Ah nevermind, that only applies to USD pairs.

>>2533268
The first one. I could have over 5m in btc for all they know. Just don't fuck up and lose all your money lol

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>>2532355
if I'm wrong I'll just mine myself out

or setup a new account lol

>>2532355
What are some methods you use to achieve these gains?

Wondering for a friend.

>>2533679
me too pls, I understand the concept but would appreciate a screenshot of the execution, preferably on kraken

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>>2533679
buy low, sell high

>>2533706
how the fuck do you know what low and high are

>>2533706
This doesn't really help. My friend already knew that.

>>2532355
I prefer butter, thanks

>>2533352

>just dont

kek

>>2533751

borrow shit at x price, sell, when shit goes down at 0.6x price buy back and pay you loan

>>2533741
nobody knows, you have to just watch charts all day and use indicators, read news, and use your own intuition

cant wait for the REEEE FORCED LIQUIDATION threads

>>2533828
Did you start winning right away just reading infos or did you build your experience from your mistakes ?

>>2533946
you have to learn from mistakes. its really the only way to truly learn

ive made a lot of mistakes but never repeat them

So is there a way to do the loaning?
I mean, I will get my money back for sure right?

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>>2533937
:^)

>>2534029
These guys are nice

Which is the best exchange to use for margin trading? I hate using Polo it always freezes on me.

>>2534103
Bitfinex, because they allow you to margin trade USD pairs without verification at 3.3 leverage

>>2533067
So you get to keep all the coins you made in profit?

>>2534118
Thanks

>>2532355
Is it legal on bittrex? I didn't learn anything on their website about it.

>>2534124
That guy described short selling, which is just one way of margin trading.
Long = bet on price rising
Short = bet on price falling

Long position on A/B:
1. Borrow B
2. Buy A
3. ... wait ...
4. Sell A
5. Return B

Short position on A/B:
1. Borrow A
2. Sell A
3. ... wait ...
4. Buy A
5. Return A

I mostly lost with margin.

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No risk, no fun :^)

>>2532355
how are you an ECP?

>>2534531
What's an ECP?

>>2534531
he isn't he lied to them D:

>>2534414
yeah but you're a fucking retard

threw my xrp into margin last night and made 1.5k

if i held normally i wouldve only made like 300

margin is ridiculous

>>2534204
I might be a retard but I'm having trouble understanding the long position you described. After step 4 (selling A) would you then buy more up of B with profits made from A before returning? Otherwise what would be the need to borrow any B at all?

>>2535735
You borrow B so that you can use money you dont have

margin offer like triple what you own

>>2535790
Ahh ok that makes sense thanks. So B would typically be BTC/ETH?

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My largest margin position to date, almost half of my capital.

I usually never trade crypto/crypto pairs on margin. It's super risky because you make a double bet essentially. But in this case BTC/USD spiked unusually fast while ETH/USD dropped unusually fast at the same time. I figured ETH/BTC is almost sure to go up.
Stop-limit order set. Wew

>>2535825
Be VERY CAREFUL with crypto/crypto positions like ETH/BTC.
It's much much safer to trade ETH/USD on margin.
Go to Bitfinex for fiat margin trading without verification.

>>2535825
yeah or whatever your exchange offers

on polo you can get ETH, maidsafe, factom, stellar, and more on margin

>>2532355
can i even do this on bittrex?

>>2535830
>after something drops, it goes up!

wow who knew

>>2534124
there is this one episode of spice and wolf where shorting is explained quite well

>>2536123
I dont know, I think someone here said you could but I cant find it on the site

>>2536153
Post your margin trades :)

Who the fuck is going to loan thousands of dollars to a an anonymous internet person?

>>2536831
other anonymous internet people

>>2536840
I don't get why anyone would take that risk. What are they getting out of it? A few percent? It's at the risk of the person just never paying it back.

What is stopping you from borrowing the crypto, then just transferring to another of your wallets and telling the loaner to fuck themself?

>>2536831
I'm currently lending $4000 to margin traders

>>2536871
polo wont let you, and if you're about to lose all your leverage they liquidate your account

>>2536871
>What are they getting out of it? A few percent?
0.15% / day currently, or compounded
4.5% / month
72% / year

>risk
Exchanges liquidate margin positions before they default.

>What is stopping you from borrowing the crypto, then just transferring to another of your wallets and telling the loaner to fuck themself?
The exchange. All the mechanics behind are margin trade including the loan are not directly accessible to users. It's automated.

>>2536923
Yeah, but you're getting paid back in the coin you lent out, which has just decreased in value.

>>2536957
I'm lending USD

I sell around 10-20% of my crypto gains to USD and offer loans.

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>>2536871
Lookup the term "margin call".

If you're going down in flames the exchange sells all your shit and pays back your creditors.

>>2536979
That's not shorting, then. Unless they're shorting USD, which is retarded.

>>2537021
Long BTC/USD = take USD loan

I'm providing that USD at around 4.5% / month
Guaranteed income with virtually 0 risk

As soon as my lending funds reach $50000, I can live off the interest alone.

>>2536831
this, whats the benefit for users and exchanges to do this?

Can any non-autists explain what margin trading is in a few sentences, as well as the risks? Or do I have to open up a new tab and Google it?

>>2537070
Try Reddit ELI5

>>2537019
So if I loan $5k to someone, they use it to buy Sia or some other shitcoin and it drops in value by a factor of 100, I get back $50?

>>2537045
where can you lend btc? Sounds comfy

>>2537064
https://en.wikipedia.org/wiki/Interest

>>2537081
Poloniex and Bitfinex
but BTC lending rates are usually much lower than USD

>>2537076
No, if you lend $5k to someone, you get back $5k + interest, always.

>>2537096
It can't be always. your lack of honesty leads me to suspect shilling.

Is there a margin call as soon as it's a losing position? Even then you can't make your interest.

Can someone explain loaning?

>>2537111
>It can't be always
Why not?

>Is there a margin call as soon as it's a losing position? Even then you can't make your interest.
The exchange then force sells everything before the loan would default, and pays the creditor.

The trader can lose nearly 100%. Margin trading is risky. Lending is not.

>>2537143
Does the margin call force-sell lender assets as soon as the lender is upside down on the loan? How is the margin. All triggered?

So wait... If people are loaning, and all the margin traders are losing, who is paying back the loaners? Mathematically this doesn't make any sense to my small wojak mind.

Explain faggot.

>>2537135
It's simple. You offer X amount of BTC or USD with a certain interest rate.
Margin traders take that loan.
The exchange ensures that their positions are liquidated before they lose more than the loan is worth.

>>2537178
>Does the margin call force-sell lender assets
Yes. It depends on the exchange and leverage but usually when the position loses around 50-80%, the exchange force-sell the trader's coins to pay back the loan.

It's in the exchange's interest to avoid defaults.
The exchange takes about 15% of interest earned, so they want happy lenders.

>>2537203
So you can lose up to 20-50% by those rules. That's not risk free.

>>2537189
You cant margin trade without first having collateral

>>2533194
Underrated

>>2537096
your a dorable

>>2537213
No, but I'll stop explaining now because it's against my interest to convince you of lending. The more people lend, the lower the interest rates. I want high interest rates, so please don't lend.

>>2537189
Understand margin trading before thinking about lending.

Example:
1 BTC = 1000 USD

Trader has 1 BTC
Trader goes long on BTC/USD at 3x leverage
Trader borrows 2000 USD
Margin position worth 3 BTC = 3000 USD
Now BTC/USD falls by 50%
Position is now worth 1500 USD

Exchange liquidates
Exchange returns 1000 USD to creditor

Trader ends up with 500 USD

So bring the lender, the debt that is owed to you is an asset. Can you take that debt owed to you, and leverage it as collateral for your own margin trade from another lender?

>>2537266
Fee fi fo fum, I smell the blood of a shilling chum.

>>2537296
Yes, I'm shilling, please don't lend.

>>2537266

So the creditor who lent $2000 only gets $1000 back when shit hits the fan?

>>2537325
My bad. Correction:


Trader has 1 BTC
Trader goes long on BTC/USD at 3x leverage
Trader borrows 2000 USD
Margin position worth 3 BTC = 3000 USD
BTC/USD falls by 1/3
Position is now worth 2000 USD
Exchange liquidates
Exchange returns 2000 USD to creditor
Trader ends up with 0 USD

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>>2537266
Thanks lad. You've convinced me to loan for some interest. Seems less nerve racking than day trading.

>>2536923
>0.15% / day currently
Which exchange?

>>2537111
What the fuck? Of course its always. He gets such good interest rates because bitcoin exchanges are not the securest and safest place to keep your money. On the other hand he probably gets a better interest rate than in any other Stock exchange