How realistic is it to use compound to short cryptos.
Let's say I put 1000$ worth of dai into Compound and borrow maybe 2 eth at 170 each (340) and then sell and put the DAI back into Compound and wait for a drop. Drop comes I buy back the 2 ether plus interest for less dai and keep the difference. In what situation would my dai get liquidated. Like if ether goes up instead of down would that count against my collateral (I'm thinking yes but idk). Is it worth paying the apy or is margin trading basically the same this with more or less risk? Tryna find the best way to short. I was also looking at eth bear token but can find an exchange I'm able to use to buy that.
Attention my fellow majestic gay bear dumbfucks. If you think this little S&P spike will stop me from taking my remaining savings to put $SPY 240 3/6 you need to be hospitalized in China. I am doing something far crazier. I’m already out of money, but I know a way to make it all better. They let you margin trade (basically free money) so I plan on winning it all back by switching back to being the DICKSWINGING BULL that I am. Call $AAL $25 3/6
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I just watched that Margin Trading Basics video earlier this week and thought I'd try station trading out. Been meaning to for a while so I figured why not. So I'm happily placing buy and sell orders and finding some good items with 10-15% margin that are moving fast. Yay I'll be rich in no time! Then I refresh the market and see some jerk plopped 100 of that item down at a super low price killing the margin for that item. This happened a few times so I figured it wasn't just some moron screwing up. Why do people do this? The only guess I can make is that this might be people with larger stockpiles who want to chase off the people that are buying/selling 10-20 of an item and playing the .01 isk war like a maniac. Is this done to "cool off" a hot item?
Let's say I hold 100 ETH and i have leverage trading options of 2 and 5. I want a margin position long 10 ETH. I could use either of the two leverage options, but why would I ever choose 2:1 over 5:1? I realise that at 5:1 for every 1 ETH I want to go long I need 0.2 ETH of equity available. I could hold positions of up to 500 ETH. Given that I only want to hold a 10 ETH position should I be using 2:1 leverage? I don't understand why using a lower margin is ever beneficial to the trader? Thanks EDIT Lets compare two examples: I have 100 XYZ, and a position of 100 XYZ at 2:1 leverage that I bought into when 1 XYZ costs $1. If the price of XYZ drops by 30% then I owe $30 for the position and I hold $70 of XYZ. I have to hold a balance of at least half the original margin trades' value in my account due to my leverage being 2:1 (so i have to hold $50) otherwise I'll get margin called / liquidated, which would then happen as the value of everything I hold is now only $40. I have 100 XYZ, and a position of 100 XYZ at 5:1 leverage that I bought into when 1 XYZ costs $1. If the price of XYZ drops by 30% then I owe $30 for the position and I hold $70 of XYZ. I have to hold a balance of at least one fifth of the original margin trades' value in my account due to my leverage being 5:1 (so i have to hold $20) otherwise I'll get margin called / liquidated, which doesn't happen as the value of everything I hold is now $40. So I live to fight another day with all my positions in tact whilst hoping the price comes back up. In both examples, if I exit out of the positions at a loss I'm losing the same amount, its just that with 5:1 leverage I'm not forced out of the position until i've endured greater losses So if my example are correct its better to use a higher leverage? What am I missing here? Thanks again
Margin in forex is the amount of money that a trader needs to put forwards in order to open a trade. Margin can either be used or free – you can find out the difference between the two below.. Understanding margin a crucial part of trading – so it’s important you know the basics. Learn the Basics of Margin Trading by watching this simple video. Trade Crypto in CoinEx! Register here: https://bit.ly/2V5a1jr Founded in 2017 with Bitmain-led investment, CoinEx consists of a team from world leading In the Forex world, brokers allow trading of foreign currencies to be done on margin. Margin is basically an act of extending credit for the purposes of trading. For example, if you are trading on a 50 to 1 margin, then for every $1 in your account, you are able to trade $50 in a trade. Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker. Trading on Margin Basics for Futures and Options Margin is what makes futures trading so attractive, because it adds leverage to futures contract trades. The downside is that if you don’t understand how trading on a margin works, you can take on some big losses in a hurry.
⚡️ Welcome Welcome Group "Margin Trading" Gather a Closed group, and while out instructions and deals ===== Ký Advertising sign: BingBon: https://bit.ly/bingbon0 (Transactional copy floor ... Margin Account vs. Cash Account - Options Trading For Beginners - How To Trade Options - Duration: 6:00. Option Alpha 78,269 views Trading with margin is riskier in comparison with trading purely with your own funds, so make sure that you understand the underlying risk. For daily updates join our Telegram channels: [EN] https ... What is margin trading? What is a margin? What is the difference between a cash account and a margin account? In episode #34 of Real World Finance we dive de... In this video, we will introduce you to the basic concepts that are necessary for margin trading on the https://50x.com exchange. Video about cryptocurrency ...