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56789582 No.56789582 [Reply] [Original]

Why is large leverage a disadvantage?

>> No.56789637

>>56789582
Increased risk, so when you're on 5x leverage and whatever you're in goes down by 20% instead wipes you out 100%

>> No.56789638
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56789638

>long coin 20x
>it flash dumps 6% before going back up
>money is gone and you were still right

>> No.56789720
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56789720

>>56789637
>>56789638
Brainlet tier answers.
What if the exposure is bigger than the lender could afford to lose?

>> No.56789851

>>56789720
Then you get margin called and lose your account. Simple as.

>> No.56789864

>>56789851
But the lender has to eat the loss in that case.

>> No.56789933

>>56789864
They will close your account before that ever happens lol. You don't think they have measures for that in place? I guess you should work at a brokerage, your ideas are revolutionary

>> No.56789954

>>56789933
What if i told you some lenders dont have any risk management? New lenders - that are new in this market?

>> No.56789979

Lenders that practice "effective altruism".
Sweet, young and naive?

>> No.56790023

>>56789979
Let me know when you find those. A free lunge is always nice, hope you find it!

>> No.56790045
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56790045

>>56790023
They are easy to spot.
You will find them yourself.

>> No.56790047

>>56789979
Fuck off jeet just buy an ad

>> No.56790182

>>56790045
Wow so I'm talking to a millionaire right now!? It's such an honour!

>> No.56791805
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56791805

People know nothing about risk management so they see a micro btc pump and x50 the shit out of it getting wiped out of anything goes wrong. Kinetix and Kraken both make it retard proof, literally asking for some common sense out of its userbase, but it seems that really is too much to ask for.

>> No.56791838
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56791838

>>56789582
WHAT

>> No.56791849

>>56789582
Obviously risks you fag

>> No.56791851

>>56791805
people want something with 100% security where they don't have to invest anything and still make thousands of dollars lmao

>> No.56791856

>>56789582
the answer is in your heart, listen to it calmly and you will know what is best for you (Buy BTC)

>> No.56791860

>>56791838
I hate this bullshit meme like you have no idea

>> No.56791867
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56791867

>>56791860
why? it's just a cat

>> No.56791879

>>56791838
well he is in fact right you know

>> No.56791888

>>56789933
I actually never really thought about what happens to the lender if things go wrong, which is more often than not. Interesting. I guess their tokens are locked and released to them again at the price they were the moment they lend them?

>> No.56791894

>>56791867
maybe he's just a dog person

>> No.56791895
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56791895

>>56791805
both kinetix and kraken need good collateral in order to even let you take leverage. so it's all good.
>>56789933
>>56791888
ding ding ding.

>> No.56791897

>>56790047
he's getting paid for it no way in hell he can afford an add

>> No.56791904

It's only a disadvantage if you are a pussy and are afraid to gamble like a real man would.

>> No.56791913

>>56791805
No one saw BTC dumping like it did last year and this year anon.

>> No.56791929

>>56789582
the volatility of crypto depends to a large extent on what you are buying, as with any other asset

>> No.56791937

>>56791929
are you comparing the price of oil with the price of BTC?

>> No.56791949
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56791949

>>56791937
why not?

>> No.56791955

>>56791805
Kinetix is so fucking based. Only reason I even bought kava to begin with, nice rewards for staking it. No bullshit limitations and no kyc. BASED.

>> No.56791961
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56791961

>>56789954
>>56789979
please read an economy book for toddles before posting here ever again.

thanks.

>> No.56792096

>>56789582
first disadvantage of CFD is that you are trading air
literally you never touch the underlying collateral, you are just gambling against some other retard on the other side of the world while some jewish platform (you can pick any CFD platform and open the early life wiki of the CEO).
all they do is getting money out of your pockets, place them in some darkpool and gamble it on dogecoin, sponsor lgbtq foundations and donate them to democrats (without your consent obviously).
then they let you think you can win big and win easy, and double your money multiple times.
so first of all: any professional guy does 0.75X to 1.5X MAX leverage, for a reason
high leverage means that the wind blowing can nuke your account to zero in a blink
and the price of the CFD doesn't follow always the spot market price, so you often have some other team working at the same platform betting against you, so they are always actively hunting their own customers to maximize liquidations (e.g. Alameda with FTX, or jeweToro) so they can literally paint any chart it makes them more money
if there is some retard with a lot of money and he is going long, they will dump that chart with some big motherfucking spike, since they have all the money in a darkpool and they can move them as they wish (they can literally use your own money deposited at the platform to go after your trade and liquidate you)
then you need to consider that every time you place a bet, you open the position with some substantial spread between buy and sell (and spread is a lot bigger than spot market, cause that's where the platform makes a guaranteed income)
so if you are a newfren in this area, STAY THE FUCK AWAY FROM CFD, FROM LEVERAGED TRADING, FROM SHITCOINS, JUST BUY FUCKING BTC AND WITHDRAW IT TO COLD STORAGE, LEARN 12 FUCKING WORDS AND TAKE SELF CUSTODY