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Symmetrick

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And here are the first good results of a new (possible) era of less risky trading.

As we can see, starting from the moment of the correction, people began to use high leverage, and with a decrease in volatility and trading volume, the leverage was constantly increasing, reaching peak values a few days ago.

And over the past few days, the trend for the use of leverage has changed in the other direction, in the direction of decrease. And taking into account the latest news, it sharply declined.

shogun47

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Quote from: Findingnemo on July 27, 2021, 12:22:02 PM

Leveraged trading itself a gambling in my opinion so I never tried to do it and its a good move that exchange even restricting people from such huge risky decision due to their greed and ignorance.

Simply follow the traditional buy low and sell high trading strategy if you want to be on the safer side.

Can you explain us how people can "simply" follow that strategy? Is it really that simple? Can you tell me when I can be sure to have bought low and when and how I can identify the selling point to which you refer to as "high"? You phrase this as if it was really easy to make money with trading, but don't forget that in many situations (not in all), we are talking about a zero sum game.

Findingnemo

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Leveraged trading itself a gambling in my opinion so I never tried to do it and its a good move that exchange even restricting people from such huge risky decision due to their greed and ignorance.

Simply follow the traditional buy low and sell high trading strategy if you want to be on the safer side.

shogun47

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Quote from: The Sceptical Chymist on July 26, 2021, 03:27:53 PM

Quote from: Symmetrick on July 26, 2021, 09:12:03 AM

After all, who in their right mind would use such large leverage as for example x50-x100?

Ask the guys and gals over at r/wallstreetbets how sane they consider themselves to be, because they're precisely the type of people who'd use 100x leverage (and probably more) to trade the riskiest of stocks/crypto/whatever. I happen to agree with you that that kind of leverage is insane, especially if you're using it in the crypto markets, where large drops are par for the course and can wipe out leveraged traders in a second.

Quote from: Symmetrick on July 26, 2021, 09:12:03 AM

This is not trading, this is a pure casino, just a game of luck.

It's all just luck anyway as far as I'm concerned, but when you start borrowing so much money and using it to increase your positions in whatever you're trading, you're either going to get rich or go broke--there's very little middle ground, assuming that you put up a decent amount of capital to begin with. And yeah, if that isn't casino mentality I don't know what is.

Hell yes, I had a little bit of fun back in the days when 1broker was still around. Pretty cool website with some nice leverage offerings. I just gambled a little bit and if I recall correctly they offered a 1000x leverage on FX pairs with USD. Holy crap, every single second when the graph moved a millimeter my balance bounced up and down and within seconds it went poof! It was just for the lolz and of course if you are lucky and get it right on events like the Brexit you could make money out of thin air literally. But if it just ticks two times against you your deposit margin turns into dust! Tongue

(of course depending on how much you put down, but playing around with 1000x leverage shows how stupid large leverage is while some people think they still aren't gambling).

magneto

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Probably partially due to regulators as well.

The blunder that occurred on Binance's leveraged tokens definitely was taken into account in this decision as well. I remember when Binance actually criticised FTX's leveraged tokens and supposedly made it better themselves - just to see a bunch of BEAR leveraged tokens go to zero when the market was falling.

High leverage/variable leverage is never a good idea, even for exchanges with large reserves. Good move to reduce risk I think, and I think it will be across the board.

Darker45

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I appreciate the moves of these two giant platforms. And I share the hope that other platforms offering margin trading would follow suit.

On a very personal level, I don't like margin trading. My personal opinion is that it just doesn't suit crypto trading. When I tried to understand forex trading, I appreciated leverages because the price movements of fiat currencies are so minimal. When I got into crypto, a 20% rise and fall in prices happens all the time. Who needs a leverage when the prices could double or halve so quickly?

One thing which also somehow bothered me with margin trading becoming a thing in crypto is that it invites more price manipulation. I hope I'm wrong but there appears to be planned liquidations.

And finally, 3-figure leverages are a bait. I know it is made for the risk-takers but with as high as 100x or 200x, trading somehow becomes a game of dice.

logfiles

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At the beginning, I used to trade on a 50x Leverage. I made a few wins and many losses until I realized I had to take it slow. I did 25x, then 15x but from then I have never gone beyond 10x

The trading wins and profits have grown at a much more decent pace than before.
I think It's a good move. I don't know if this will mean that the derivatives markets will be a little less volatile, and they have been. For example this happened to Binance this morning when Bitcoin price spiked to $40K in the spot markets [ Bitcoin Perpetual Futures Hit $48K on Binance ]

The Sceptical Chymist

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Quote from: Symmetrick on July 26, 2021, 09:12:03 AM

After all, who in their right mind would use such large leverage as for example x50-x100?

Ask the guys and gals over at r/wallstreetbets how sane they consider themselves to be, because they're precisely the type of people who'd use 100x leverage (and probably more) to trade the riskiest of stocks/crypto/whatever. I happen to agree with you that that kind of leverage is insane, especially if you're using it in the crypto markets, where large drops are par for the course and can wipe out leveraged traders in a second.

Quote from: Symmetrick on July 26, 2021, 09:12:03 AM

This is not trading, this is a pure casino, just a game of luck.

It's all just luck anyway as far as I'm concerned, but when you start borrowing so much money and using it to increase your positions in whatever you're trading, you're either going to get rich or go broke--there's very little middle ground, assuming that you put up a decent amount of capital to begin with. And yeah, if that isn't casino mentality I don't know what is.

bitmover

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Quote from: Symmetrick on July 26, 2021, 09:12:03 AM

After all, who in their right mind would use such large leverage as for example x50-x100? This is not trading, this is a pure casino, just a game of luck. Risk and money management are not applicable there, but rather a toy for fun and a tempting offer for beginners who are not yet fully aware of the full danger of such high shoulders.

Although there are many techniques and even some bots that help trading, there is always a luck factor involved.

You can use bots, artifical intelligence, TA, etc but none of that matters when a powerful tweet pops out (like elon's) or any other random event. And these random events are more likely than they look like.

There is a very good book about this subject by Nassim Taleb, The Black Swan. He explain that those events occurs much more than people are prepared for.

So betting even 20x is pretty crazy imo if you are putting real money in the table...

It is good that big exchanges are not allowing it anymore,.. so many people trying some quick rich scheme in crypto. This is not healthy

Symmetrick

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