/biz/ - Business & Finance

[Anonymous No.8825626]

If I put up a short with 100x leverage for $100 USD worth of BTC, and when I lose, it's only the $100 of BTC that is liquidated, right? I don't go into outstanding debt because of it? As I type this, it makes more and more sense that I'd just lose what I put up, but I thought I'd ask a group of people that are likely to make fun of me and call me stupid. Thanks

[Anonymous No.8825639]

>>8825626
yes. it's not rocket science. just go ahead.

[Anonymous No.8825648]

>>8825626
the state of /biz

[Anonymous No.8825653]

the exchange will not let you loose their money so yes your account will be liquidated and position automatically closed. At 100x leverage you will loose immediately.

[Anonymous No.8825657]

>>8825626
If you open a short position of 100 contracts at 100x leverage then you're only putting 1 contract on the table, while they put the rest. If you get liquidated you will lose that 1 contract.

[Anonymous No.8825678]

>>8825657
>>8825653
>>8825648
>>8825639
Thanks for responses that wasn't just calling me a brainlet.

[Anonymous No.8825702]

>>8825639
So, why doesn't everyone just use 10x leverage on short stacks instead of day trading? I'm not saying it's easier, but the risk and reward ratio has got to be greater.

[Anonymous No.8825718]

Or has everyone been doing this during the freefall from 20k, and I'm just a newfag.

[Anonymous No.8825738]

>>8825702
greed is the answer anon.

>>8825678
try playing on testnet.bitmex.com before doing real trades (you will get fake BTC to play with).

and use my ref link to signup: https://www.bitmex.com/register/XzFbgn

[Anonymous No.8825785]

>>8825738
I will most certainly use your referral code, as I appreciate your useful responses. Testnet.bitmex looks like it could do wonder with enough time and patience put into it! Thanks for your help, anon.

[Anonymous No.8825856]

>>8825785
Mind you, the testnet market acts a bit different compared to the real market. Here's more advice:

1. Be ultra impatient with bad trades, and patient with good trades
2. Read all about the different types of orders so you can set up your trades in advance
3. Use Post-Only trades to receive a maker's fee (you will get paid for your order getting filled)
4. Set up your entries and exits before the action happens. When prices start going crazy the site overloads and you won't be able to get any orders through the system.
5. Don't hang out too long in the Trollbox. While it's useful it can get too noisy and fuck with your psychology, spooking you out of what could be a good position

[Anonymous No.8825888]

>>8825856
AND NEVER GO ABOVE 10X LEVERAGE UNLESS YOU FEEL LIKE GAMBLING

and always put a stop loss BEFORE your liquidation price. Liquidation not only means letting go of your position, it also means you pay a liquidation fee

[Anonymous No.8826046]

>>8825856
>>8825888
Cheers, anon. This seems like a good place to get me started. Going to have to familiarize myself with everything before I even think about dumping into it.

[Anonymous No.8826072]

>>8825653
>loose