/biz/ - Business & Finance

>>7272752
I don't understand this leverage shit, how much you lost?

>>7272789
8k

>>7272752

>longing in this market

>>7272789
8k
each contract is 1$
but since he is at 100x leverage he gets to play with 100x what he puts up so 800k
the catch is if it moves 1% in the direction opposite of your bet you lose it all (or nearly all of it)

also OPs picture is edited lmao because it makes no sense

>>7272752
>using 100x without knowing wtf you're doing or running a bot to read the orderbook
asking for it

how much would u have made if it went up say 200.00?

This seems like an easy way to make money. Is there a medium amount I need to put up?

>>7272752
How can you possibly not get liquidated if the margin is so thin? All coins move a few percent up and down constantly. When you take a position like this, how much do you have to keep it? Can you just have it for a few minutes and stop then cash out instantly? I don't see any other way you could possibly win.

>>7272854
But the pic says 9k, so he made 1k?

>>7272887
when you're entering a leveraged trade, you basically multiply the risk by the amount of leverage you take. in this case, his risk/reward is increased by 100x. 200 is about 2.2% so 220% ROE.

so basically it's all gambling.

>>7272887
>>7272887
$17000 assuming he traded it at $9300 initially.

>>7272752
kek

I'm long x100 on $10,000 since my limit order triggered at $7498, panicking about potential new low kek. I'm out at 10k back in at whatever the next low is. Still have a short on second account from 11.2k but waiting until the bottom to trigger, thankfully has to hit 40k before I get liq'd on that kek

>>7272968
100x margin trading is gambling, yes. But when the fucking caller also runs the exchange, it's straight robbery.

>>7272870
bots worth it?

>>7272887
any % increase just multiply by 100. so if it goes up 1% he gets 100% profit on his principle. so if his principle was 8k, like in this case, he'd make 100% gains on every 1% increase but if BTC drops 0.1% when he initiated the contract, he would lose his investment of 8k. margin trading.

>>7272985
It's all gambling. Even if the market is crashing or bullish there are always corrections along the way.

>why lose all your money in a crash, when you could lose all your money gambling? Try margin trading now!

>>7272917
yes you could instantly cash out, personally I scatter $10,000-$20,000 in $100-$200 increments up/down depending on the daily trend. 80% get liquidated but the 20% that win net me about a 200-300% daily ROE in bull/bear markets, sideways I just bot trade margins between resistance and it's fairly good.

>>7272752

Can somrone explain to a brainlet like me how this works? I know it's like gambling but I'm interested in learning about it.

>>7273000
>>7272930
>>7272975
Thanks for the Clarification. What happens if btc went up 2% but then dropped .1%. for a total of 1.90% increase.. would he still get liquidated?

>>7273219
This dude did.
>>7272854

>>7273073
Would you please consult me on this sort of thing? i would be in your debt and pay a portion of my profits. I am really considering doing leveraged trades (with a small amount)

lol does anyone ever make money trading with 100x leverage

I swear you fucks are just handing your money to that nigger corecuck that runs bitmex. he is fucking scamming you left and right liquidating your asses every single time and you keep coming back for more of that big nigger cock in your faggy autistic asses

>>7272752
how do you declare taxes from bitmex if you're in the US or do you basically have to be ok w tax fraud? surely if it's not legal to trade there you cant declare it?

>>7273227
oops nvm its actually 0.5% not 0.1%. anyway same principle. so if you invested at 10k you have a 0.5% window of decrease from that price point. so if BTC drops to 9950, you lose your investment. any other point above 10k is pure profit. so if BTC goes up 100 dollars you get 100% profit, if it goes up 500 dollars you get 500% profit and so on. so 100x leverage is STUPIDLY risky. you have an insanely small window to fuck up, so only a moron would take the risk with any sizeable investment.

Day traders are faggots

>>7272752
This picture makes no sense?

>>7272752

>>7273227
my throwaway is hairyboipussi@cock.li feel free to mail me there if you want; I manage a fund for some people irl and a few people from /fit/ for this kind of thing since I have a large enough value to my account that it's pretty much impossible for me to get liquidated on cross margin unless I let a short run from like, 9k to 20k or something absolutely retarded.

>>7273227
If you lost some gain you wouldn't liquidate, you only liquidate if you drop past that point of your initial investment.

>>7273512
>only day traders are margin traders

>>7273219
>>7273258

The guys explanation below is actually not that great.
>>7272854

>>7274287
its the basis or a leverage position
if you want to hold a long position with 800k contracts you need 800k USD of BTC.
Now if you dont have 800k USD of BTC you need to increase the leverage on the btc you do have, essentially upping the stakes.
Upping the leverage to 100x will give you 100x the XBTUSD contracts of the amount of BTC you have (in USD)
So he goes in with 8000$ USD worth of BTC at 100x leverage to come out with 800k XBTUSD contracts (valued at 800k USD)
Now since he is betting on the long position he will be "winning" if the price goes up and gain based on the 800k XBTUSD contracts. For example if btc increases 1% with a 100x leverage his position will be worth 808k XBT which would double his original position from 8k to 16k (he gets to get that minus fees)
If he is losing he will lose value based on the 800k XBTUSD contracts. Since he is playing with such a high leverage he has very little room to work with if btc starts lowering in value (it takes average of other exchanges such as GDAX). If BTC goes too far the wrong way, in his case lowering in value his position will be liquidated and he will lose all he put into the contracts (8k)
Essentially using leverage allows you to multiply gains at a much greater risk. 100x leverage is suicidal in a market like this considering the tiniest swing will liquidate your position. Probably around a .7% decrease in price would cause liquidation

>>7274542
1 XBTUSD = 1 USD in BTC value = 1 contract
got erased off the top

>>7274542
Does the higher leverage you go for decrease your margin?

>>7274677
exactly

>>7274677
if you leverage is 100 then your margin is 1% because you are only putting up 1% of the value of the trade
if your leverage is 20 then your margin is 5%

>>7273316

There was a crazy anon a day or two ago that claimed he did a x100 margin trade of 10 bitcoin and made of with an extra 15 bitcoin. No proof though. Balls of titanium if true though.

>>7275087
so he entered into market with 1000 BTC? that would absolutely skyrocket or crash price

>>7275286
No, it wouldn't. Margin trades don't build for/against the volume like that because they traded against a (potentially) equally large margin position.

Regardless, three 400-600BTC walls and a 800BTC wall went down on GDAX within about two hours on the dump to 7.5.

I have no idea why people think margin trading is so autistic.

If you have literally >10BTC valuation to your portfolio (and you should, if you don't at this point just neck) then you should be trading on margin because, unless you set a short without a stop, you have 99.999% chance you'll never get liquidated due to price fluctuation since you can offer so much collateral.