Factom will dump hard with any good news, like always. It's almost like such amazing news come out, it's logical price would go up, so people long it, and then the manipulators dump it to liquidate the calls. I wouldn't touch margin on this coin until we can get better distro. Unfortunately the price will go wherever the big holders want it to. News does not affect Factom at all.
I take 25% of my fct holdings and use is for margin, long. Any more than that would make me uncomfortable. That way I can use leverage to my benefit without ovextending, and if there is a major pullback I have enough fct to add.
Yeah I've done the same thing, though only at 15%. I'm relatively new to margin trading but one of the things I've learned so far is it's important to pay attention to BTC b/c a rise in that market eats away proportionally into your long-position gains, given that you have to repay in BTC. But good call on not overextending the leverage IMO. Either way I find it hard to believe that any BTC gains should outpace FCT over the next weeks/months, so it seems like a relatively safe bet.
Not to bust your balls but the only thing that will eat away your gains is the premium attached to the margin loan, currently 11% annum, Btc. The btc to fct ratio is a non issue, that's just what you use to figure out the USD equivalent.
15% is right where you want to be. My math was off. The 20% cushion that Polo gives you is actually only 20% of your collateral, not collateral plus loan, that's where I went wrong. I thought 20% was 20% etc. Good thing I caught that. I figured heck, at 25%, I could afford losses down to 80% of current trading price which in actuality is much less. But at 15% margin , you could add fct until your losses bottomed out at 66% which is a much better and MUCH safer number i.e. Current price $2.75 down to 94 cents. And at 94 cents, buying more would be much easier.
Hopefully some of that made sense.
Margin trading is great if done correct, the loan rates are nothing compared to the gains you can get.
