/biz/ - Business & Finance

>>14475139
Kraken. Up to 5x. Spot. Cash settled.

brainlet here
anyone has experience with margin trading on kraken?
watching crypto since 2016 so i am not all too familiar with trading, made some nice gains during 2017 just by HODLing, now trying out margin trading with small amounts ($1000) to get familiar with the interface and whatnot

already learned a couple things, namely: dont fucking short a bull market, among other things but i still don't quite understand a thing, so have an example

let's say i 5x leverage buy 0.1BTC @ $9500, meaning i borrow fiat from the exchange to buy said BTC
now I close my position at whatever price above $9500 to "sell" my BTC, I pay the fees, I pay back my "loan" I took from the exchange, the remaining cash is my profit.... in fiat
at least this way, i actually earn more cash than what i would've if i simply bought 0.1 BTC without leverage and then sold it at a later time thanks to the leverage, but it is still just SHITTY FIAT

my second option is to settle my position, but then I just buy the BTC that I first acquired on a loan, so if I opened a long to buy 0.1 BTC at $9500 and then settle the position... that's what I get, 0.1 BTC at $9500, no matter how high my leverage was, might as well just have limit bought it without leverage anyway

or is my understanding of settling a position completely wrong?

how do I long BTC on kraken and actually get my P/L paid out in BTC instead of fiat, seems so easy and basic on bitmex interface but not on kraken

what are the recommended exchanges?
I had accounts in several exchanges but since you had to verify your identity everywhere and also I was paranoid with niggers running away with the money I put everything I had in kraken
it feels more trustworthy but it doesn't have many coins