Interest rates for loans are getting to an all time low. But when you borrow from a stock broker like Schwab, Fidelity, TDA etc. you could pay upto 10% interest. Why aren't stock brokers more dynamic with their margin borrowing rates to become more inline with market place interest rates? Why isn't the margin borrowing space more competitive?
Most secured exchanges for DASH and IOTA margin trading vs USD or EUR
I use to trade on Bitfinex, but lately I read bad stories where they ask you to prove the origin of the coins which sounds like a pain in the ass which I don't want to go through ever so I'm looking for another exchange to trade on margin.
I see that you only gain 1/2 of the difference on short or long. For 1 btc going long on margin (0.5*($670-$640)) = $15. If you do an exchange you will get close to $30 profit with just some exchange fees. So exchange is more profitable?
Hi - I don't want to use my TFSA to make day/swing trading income due to risks/CRA. But is it better to trade inside my RRSP or Cash account? RRSP - my gains will be taxed like income come RRIF which I don't think is fair- CRA should only tax contributions but that's life...I can make $200-$3000 every week in capital gains. Thanks
To followup on previous post: https://www.reddit.com/Bitcoin/comments/g09cuk/good_exchange_to_short_btc_for_us_citizens/?utm_source=share&utm_medium=web2x I looked at Phemex, Bybit, or Deribit but I don't know anything about trading derivatives. And I don't want to trade bitcoin. My goal is buy more tezos with borrowed money. Kraken is too expensive. Binance forbids US residents and they do KYC even if they say they don't for small amount. Kucoin does not look reliable but at least 6 times cheaper in margin interest compared to Kraken. Kraken charges margin interest every 4 hours. Kucoin charges the same amount in 1 day. I don't want to use coinbase because they report to IRS and is a tax nightmare for me. Questions:
what exchanges out there let you trade altcoins with margin for someone living in US besides kraken, coinbase?
what do you feel about trading futures, derivatives? I know nothing about them.
Defi vs. Margin Trading: How to Borrow against your Ethereum
I have tried out Maker and it works well to borrow USD (DAI) against my Ethereum in order to buy more Etherum. Is there any exchanges that provide the ability to borrow USD against your Eth? On Binance margin trading requires you to deposit ETH and borrow ETH and repay ETH so there is no upside on ETH investing.
How is margin trading pretty safe if the margin trading side of things can buy more value than they're borrowing?
This is my first go at understanding margin trading vs lending. I'm trying to understand all the risks associated with it. I understand if the exchange goes down things can be jacked up, but for the purpose of this discussion lets ignore that scenario. I've searched on YouTube and found some videos, but haven't found anything yet that cleared it up for me. I see a LOT of people say that how Poloniex does it (with the collateral liquidation) makes it almost risk-free unless there's something massive that happens with the price in a very short period. Poloniex's web site gives the following example:
Current Margin: The percentage of your Total Borrowed Value that your Net Value currently is (in other words, Net Value over Total Borrowed Value). Current Margin is a critical value, because if it dips below your Maintenance Margin, your account will undergo a forced liquidation. For example, suppose you have 1.5 BTC in your margin account, and your Maintenance Margin is 20%. Borrowing 3 BTC, you open a long position in the XMR market. Now, in order to avoid a forced liquidation, the Net Value of your margin account must remain above 20% of the 3 BTC you just borrowed, or 0.6 BTC. If the price of XMR starts declining, the amount of BTC you can get by selling the XMR you just purchased diminishes, and you start to incur a loss. This is reflected in your P/L and Net Value. If the amount of this loss, together with the lending fees you owe, reaches 0.9 BTC, the net value of your margin account will be 0.6 BTC (1.5 BTC minus 0.9 BTC in unrealized losses) and a forced liquidation will trigger.
Is this saying that the borrower must maintain a value of at least 3.6 BTC in their margin account? If so, it makes sense why this seems risk-free aside from an issue with the exchange going offline or very steep fluctuation in price...
Newbie here, been "day trading" (sort of) on Robinhood for the past few weeks. Ran into the issue of being marked as PDT and blocked from selling certain stocks I had recently purchased. Considering: -I am starting with a small account balance of $1.5-2k -I am trying to save as much in fees as possible to keep my daily percentage gains high (reason why I decided on IB as my new broker) -I would like to have account deposits/withdrawals go thru as quickly as possible (preferably the same day I deposit) -(Not as important as the above requirements) Would like to have the option of trading options (pun intended) It would be better to go with a cash account right? Or are there benefits to day trading with a small balance margin account that I'm not seeing? Thanks in advance for the advice!
Hello folks, I discovered Nexo and while I think there’s a great need for long term investors / hodlers to access liquidity via fiat loans, for pure trading purposes is there any reason to take out a USDT loan vs margin trading on exchanges such as Bitmex? For lower interest rate maybe?
A margin account is a brokerage account in which the broker lends the customer cash to purchase assets. When trading on margin, gains and losses are magnified. more. Margin Call Definition. Margin Trading vs Spot Trading? Well, imagine you don’t have enough for the trade you’re looking towards leveraging. With margin trading, the trading platform allows you to open a position that is larger than the balance of your account. Essentially, this allows people, or traders to access an amount of funds to increase their order, which ... Spot trading is your normal buying/selling. You spend one currency to get another. Margin trading is not your normal buying/selling. Essentially, a margin trade in one product is a bet on the price of that product, using borrowed money to attempt to amplify your profits. Margin Trading vs Spot Trading? Well, imagine you don’t have enough for the trade you’re looking towards leveraging. With margin trading, the trading platform allows you to open a position that is larger than the balance of your account. Essentially, this allows people, or traders to access an amount of funds to increase their order, which ... Trading on margin. Buying securities on margin allows you to acquire more shares than you could on a cash-only basis. If the stock price goes up, your earnings are potentially amplified because you hold more shares. Conversely, if the stock moves against you, you could potentially lose more than your initial investment.
Basics Of Trading Options With Margin [Episode 97] - YouTube
How To Avoid Pattern Day Trading Rule Cash Account VS. Margin Account - Duration: 23:37. The Boiler Room 47,859 views. 23:37. Taking losses, ultimately winning · Sean Hendelman, ... Do you have a margin account or a cash account? Tim Bohen is covering the pros and cons of each kind to help you decide which is best for you. 🔴 Subscribe fo... Click here to Subscribe - https://www.youtube.com/OptionAlpha?sub_confirmation=1 Are you familiar with stock trading and the stock market but want to learn h... 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... Margin trading in the forex market is the process of making a good faith deposit with a broker in order to open and maintain positions in one or more currencies. Margin is not a cost or a fee, but ...