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/biz/ - Business & Finance

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13730703 No.13730703 [Reply] [Original]

Brainlet here. Can someone explain how longing works?

With shorts I know you get liquidated if the price goes above X price (not sure how this is calculated depending on your leverage) but with longs? you also get liquidated if it goes below X? how do you calculate your margin? If It depends on exchange, if so how anyway?

I was going to go long at around 3k and i pussied out once again. Just a small leverage like x2. So let's say I went long at 3.5k with x2 leverage, how do I know at what point I would get liquidated?

>> No.13730719
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13730719

>>13730703
>Can someone explain how longing works?

You tell the exchange that BTC go up, and you get liq'd if BTC go down.

https://youtu.be/8SlEvsbqcLc

>> No.13730727

>>13730703
you're using borrowed money to fund a much larger position than you otherwise would be able to if you just use your own funds

because you're playing "on margin" (with borrowed money), all you can really afford to lose in the trade is your equity (which is a fraction of the total value of the position). As the price moves down, you get closer and closer to your liquidation price, which is the point at which your equity is wiped out and the exchange takes over to handle your position. In reality it's a bit higher than the point you're wiped out at, since bitmex keeps a margin of safety which is added to the liquidation fund

>> No.13730739

NIO?
what is he spelling out?

>> No.13730799

>>13730739
Nioggers.

>> No.13730903

>>13730727
But how do you know at what pric you get liqd?