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/biz/ - Business & Finance

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8706026 No.8706026 [Reply] [Original]

Do these hordes of newbie shorters realize that the most you can do shorting is 2x.

If you went long from $1000 to $20,000 you have 20x your gains.

If you went short from $20,000 to $1000 you wouldn't even double your money.

>> No.8706049

>>8706026

Bait or tard

>> No.8706053

Where could you hold a short from 20K to 1K? You can't stay in position for months the fees would eat it up

>> No.8706070

>>8706026
Leverage you retard, can't believe I'm responding to this

>> No.8706074

>>8706053
Why are there fees if you're not leveraging?

>> No.8706076

>>8706026
Thats why I use 50x. Easiest way to earn money.

>> No.8706087

>>8706026
2x short is just a means to hedge your risk. It isn't meant for profit, its what miners for example could utilize to make sure they still get paid the same in USD when BTC takes a dive.

>> No.8706095

>>8706074
>borrows money from exchange
>expects not to pay fees because he's only borrowing a little bit

>> No.8706117

>>8706074
Well he said double his money from 20 to 1, so he has to be using light leverage in this example right?

If he shorted without leverage he'd just have 20x the stack but not any more fiat value

>> No.8706330

>>8706026
Stop posting duplicate threads you faggot. I'm glad your shitcoin is crashing. You're a retard for buying at the top and you're never getting your money back. I hope your family disowned you for it.

>> No.8706353

>>8706026
great TA
sold 100k

>> No.8706745

>>8706070
Well the same still applies.

If you went long on 2x leverage from $1000 to $20,000 you have 40x your gains.

If you went short on 2x leverage from $20,000 to $1000 you wouldn't even 4x your money.

>> No.8707124

Another perspective is the gaining satoshis meme. If you short from $20k to $1k, you gain $19k. Now BTC is worth $1k. Congrats, you went from having 1btc to 19btc.

>> No.8707195

>>8706745
nah you still get for 40x on the short in that scenario

>> No.8707255

>>8707195
$20k to $1k is -95% so the return on shorting at 2x leverage would be 190%.

Correct me if I'm wrong.

>> No.8707330

>>8707124
Wait what? What happens if you go short to 0?

>> No.8707335

>>8707255
yes you're wrong because its a 2000% change

>> No.8707338

>>8707255
You're right but who cares? You can't pick a market cycle, just play it. You can double your money from shorting 5x from 10 to 8k.
I don't give a shit what I could have made from going long from 8 to 10k because it's not gonna go up. Simple as that.

>> No.8707361

>>8707335
What, how?

>> No.8707383

>>8707338
>going short
>not into options

>> No.8707402

>>8707338
Because alot of these new shorters have an attitude of 'Oh I missed the 20x gains on the run up, I'll just get them on the run back down'.

If these inexperienced traders realized that even if they shorted it back to $0 then it would be the same gain as going from $1000 to $2000 then shorts probably wouldn't be at an all time high.

>> No.8707421

>>8707361
1k is 20 times smaller than 20k

>> No.8707451

>>8707402
Somebody's bag holding :^)

>> No.8707461
File: 3.37 MB, 320x226, biz buying in.gif [View same] [iqdb] [saucenao] [google]
8707461

>item is 4$
>sell 10 for 40$
>price drops to 1$
>buy back 10 for 10$
>keep 30$

>this is at most 2x gain

/biz/ trying to do math. never forger.

>> No.8707493

>>8707451
I'm bag holding from $300.

>> No.8707740

Shorting explained: Before the short I have items worth 40$, after shorting I have Items money worth 40$. This is a 0x at most

>> No.8707886

>>8707740
when shorting with leverage you are selling someone else's thing or BTC so your example is not applicable here

>> No.8707954

>>8707255
You are wrong. When you short, you are still buying at 1k and selling at 20k. Its just in reverse order.

>> No.8707969

>>8707954
>prices can drop more than 100%

>> No.8708020

>>8707969
>doesnt understand shorting
>sell at 20k
>buy at 1k
>Thinks this isn't the same as buying at 1k and selling at 20k

>> No.8708053

>>8707969
>prices can drop more than 100%
why the fuck shouldn't they be able to? is the reason for all these threads being made really because of this brainlet misconception?

>> No.8708079

>>8707954

I think OP is butt hurt about the fact that going long from 1k -> 20k would be a 2,000% increase in value, but shorting from 20k -> 1k would only be a 195% increase in value.

It's the same amount of total profit either way, but shorting requires significantly more upfront capital and risk.

>> No.8708099

>>8706026
Are you retarded man? So if price is dropping I shouldn't short? Why? Am I a whale? No I'm a fucking guppy and if I can make money on the way down I will. When trend is up I will long. Simple as that. Fucking kill yourself.

>> No.8708102

>>8708053
Yeah, that's when you start owing money to the exchanges. THEY WILL FIND YOU IF YOU'RE VERIFIED

>> No.8708156

>>8708020
>>8708053
ok brainlets here's some really hard math:

>1 XRP is worth 1$.
>I decide it's a shitcoin and short 100XRP for 1$ (100$ short position)
> price drops by 99% to 1c
> close 100XRP short for 100*1c = 1$
>keep 99$ profit

what you faggots fail to realize is that you cannot arbitrarily close that short for dollars. The only thing you could do is buy 100x the XRP back, which does NOT transllate to 100x profit since that shit is now worthless.

At most you can make 100% on your DOLLAR investment assuming the price drops to literally zero.

Hope that was simple enough for you retards.

>> No.8708157

>>8708102
Just make sure you use a liquidating exchange like bitmex... otherwise you won't get liquidated just end up owing more and more...

>> No.8708163

>>8708102
what the fuck?

>> No.8708304

>>8708156
you don't buy the XRP back, you tell the exchange to buy back their XRP that you previously sold.
Assuming 40 leverage that's 40x * 100 worth of XRP which translates to 400 XRP * 100 since it lost 99% of its price in going to 1c. So you buy back 40000 XRP for the exchange.

>> No.8708499

>>8708304
4000 XRP i mean i the initial purchase
and then if it drops by 99 cents the exchange
can then buy back 400,000 XRP

All they care about though is that they have their original 4000 XRP so they give you 400,000 minus 4000 XRP worth of dollars

>> No.8708609

>>8708156
so have i finally put an end to these fucking brainlet threads?

>> No.8709133

>>8708156
Shorting once
>Sell at $20000
>Buy at $1
>profit 99%

Shorting multiple times
>Sell at $20000
>Buy at $10000
>profit 50%

>Sell at $10000
>Buy at $5000
>profit 50%

>Sell at $5000
>Buy at $2500
>profit 50%

>Sell at $2500
>Buy at $1250
>profit 50%

>Sell at $1250
>Buy at $625
>profit 50%

>Sell at $625
>Buy at $312.5
>profit 50%

>Sell at $312.5
>Buy at $156.25
>profit 50%

>and so on....