Can my FTX short position make a recovery?

Kemarit

legendary

Activity: 3080

Merit: 1353

Quote from: rokok lokal on November 21, 2022, 12:17:40 AM

There's no way to say precisely how much the price of BTC will decrease from this point or how long it will take for your position to close at a profit. The market is in a downtrend, and although there are some positive signs the Lightning Network, for example, nothing is assured in crypto trading. Depending on the leverage level you used, it could take quite a while before your position turns a profit.

It's pretty obvious that we won't see a position to make a good profit at the current price. Yes, it's down right now, and investors doesn't want to leverage their money on FTX token. Not sure though why you mentioned Lightning Network? it has nothing to do with short position that the OP is asking.

Yes, it's good that the implementation of LN is underway, but nowhere near what we are expecting to happen this year as we are in center of bearish market.

Worst of all, next year this sentiments is going to continue. So taking position right now takes a lot risk.

adaseb

legendary

Activity: 3808

Merit: 1723

Quote from: istiak2277 on November 21, 2022, 12:26:30 PM

I hope this users get his funds back. FTX rekt many users by creating fake contract. I saw they create Future position such a way that alamedas position will bever liquidate. So just thinking who paid for that money. Those must be users funds who never knows their own funds has been used against them. SBF should be in jail by now. FTX short position will never made a recovery.

Those contracts were basically leveraged contracts which were following the price on their perp futures platform. So basically they had a market.

When you opened a leverage token it would basically buys or sell the contracts on the perps market for whatever coin you wanted. And during the day it would keep the leverage balanced. And when you went to sell it, it would do the opposite.

istiak2277

member

Activity: 728

Merit: 19

KUWA.ai

I hope this users get his funds back. FTX rekt many users by creating fake contract. I saw they create Future position such a way that alamedas position will bever liquidate. So just thinking who paid for that money. Those must be users funds who never knows their own funds has been used against them. SBF should be in jail by now. FTX short position will never made a recovery.

CageMabok

hero member

Activity: 1050

Merit: 844

Quote from: rokok lokal on November 21, 2022, 12:17:40 AM

There's no way to say precisely how much the price of BTC will decrease from this point or how long it will take for your position to close at a profit. The market is in a downtrend, and although there are some positive signs the Lightning Network, for example, nothing is assured in crypto trading. Depending on the leverage level you used, it could take quite a while before your position turns a profit.

And when someone already knows about the uncertainty of profit in crypto, that is why some people suggest using free money that is not used for life's things in investing and also trading in crypto so that when bear conditions occur in the market, he will not easily get panicked and losses due to releasing its assets during a panic.

Actually dealing with conditions like today is quite simple and simple, if someone has bought more Bitcoin, then be patient waiting for the price increase to come and if someone still doesn't buy Bitcoin at this time, then use it (free money which when experiencing loss is still very willing) to buy Bitcoins.

rokok lokal

member

Activity: 120

Merit: 25

There's no way to say precisely how much the price of BTC will decrease from this point or how long it will take for your position to close at a profit. The market is in a downtrend, and although there are some positive signs the Lightning Network, for example, nothing is assured in crypto trading. Depending on the leverage level you used, it could take quite a while before your position turns a profit.

adaseb

legendary

Activity: 3808

Merit: 1723

Since the website is down I can’t confirm. But I am pretty sure those leverage tokens were on the erc20 network and you can send them to any exchange which trades them. I think Poloniex is one of them.

However you would of had to withdraw them first. If you didn’t then obviously it’s too late. However if it’s in your ETH wallet then find an exchange that supports the token and just sell it there.

STT

legendary

Activity: 4102

Merit: 1454

3x short means you have to be correct today or near term and so that was extra risky to do so. There is actually a negative to the daily pattern in a triangle price action but cant be sure it breaks downwards right nowm, I do think we have a probable established range and we are close to the top of that. If we do fail to break back into prices in the 20's and latest event news suggests excess liquidity, then price is likely to be neutral at best and can lose double percentage figures on little effort..

GreatArkansas

legendary

Activity: 2506

Merit: 1394

The main problem here is how you can withdraw your funds to FTX, even if you make a ton of profits from your trades, the ending is your funds are locked, and you can't do anything with them.
Now the FTX app is not working anymore, you can't even check your trade if it's still open or already closed. Some people saying that their funds is already gone, like they don't see their balance anymore but there's no legit proof of it as their app is not working anymore.

Dyneema

newbie

Activity: 4

Merit: 0

Quote from: Dyneema on June 17, 2022, 03:42:40 AM

Quote from: KingZee on June 16, 2022, 12:44:31 PM

Quote from: Dyneema on June 16, 2022, 09:17:17 AM

I bought some "3x short Bitcoin tokens" 7/25/2021 on FTX when the Bitcoin rate was BTC1/$34175 for 329USDT. 1 btc have been around $40000 for a long time now, and currently it's even down to ≈1BTC/22000 but my 3x short Bitcoin position is still currently only worth around 111USDT. I understand it's about time and value of an underlying asset. I also learned about "volatility decay" then there is a fee on this leverage. Furthermore, I don't think btc will fall much under $20000. But how long will it take for my short position to
recover in this bear market, will it ever?

Leveraged tokens are absolutely terrible in the long-term. This is the cost you pay for the "no-liquidation" perk.
Go read up more about them, but they re-balance every day, meaning when the market is not volatile, you lose money, when the market is going up, you lose money.
Honestly, unless you expect bitcoin to repeatedly go down in a manner that each day is a red candle increasing the value of your leveraged token, there's no way you're going to make money.
To put it into perspective, go look up the BTCBULL token price from January 2021 (~30-40k) to Nov 2021 (2nd ATH), and you'll see it also has lost value.
Next time read up on leveraged tokens and how they work.

Yes I assume that's right, it validates what I just read on blogs etc. It's not really how FTX was marketing these tokens, though. Maybe if I had got into the fine print on their site. But on the other hand, I would have lost everything if they worked in the way I interpreted them to work. But very well just found it interesting to trade for a while, not the end of the world. Then yes that seems reasonable that the bulls from Jan 2021 was still in a loss Nov 2021 because the levels around the ATH was just brief.

It was all a scam anyway!

Bitcoins101

hero member

Activity: 910

Merit: 509

Leveraged tokens are a good way to be basically right, but still lose money.

Bitcoin_Arena

copper member

Activity: 2114

Merit: 1814

฿itcoin for all, All for ฿itcoin.

Looks like you messed up, my friend. Leveraged tokens are far different from the usual x3 leverage futures or margin positions… If I were you, I should have exited the market way back via stop loss when things started going downwards.

Leveraged tokens are usually suitable for only short term not long term. You will gain nothing or will get more losses holding the positions long term.

2stout

hero member

Activity: 2548

Merit: 607

Looks like you lucked out and are still in the game as opposed to already losing everything; however, not sure if your position will recover but at worse you're only out 329USDT. You win either way- if you recover and get ahead and even if you don't you got an education out of it.

Dyneema

newbie

Activity: 4

Merit: 0

Quote from: KingZee on June 16, 2022, 12:44:31 PM

Quote from: Dyneema on June 16, 2022, 09:17:17 AM

I bought some "3x short Bitcoin tokens" 7/25/2021 on FTX when the Bitcoin rate was BTC1/$34175 for 329USDT. 1 btc have been around $40000 for a long time now, and currently it's even down to ≈1BTC/22000 but my 3x short Bitcoin position is still currently only worth around 111USDT. I understand it's about time and value of an underlying asset. I also learned about "volatility decay" then there is a fee on this leverage. Furthermore, I don't think btc will fall much under $20000. But how long will it take for my short position to
recover in this bear market, will it ever?

Leveraged tokens are absolutely terrible in the long-term. This is the cost you pay for the "no-liquidation" perk.
Go read up more about them, but they re-balance every day, meaning when the market is not volatile, you lose money, when the market is going up, you lose money.
Honestly, unless you expect bitcoin to repeatedly go down in a manner that each day is a red candle increasing the value of your leveraged token, there's no way you're going to make money.
To put it into perspective, go look up the BTCBULL token price from January 2021 (~30-40k) to Nov 2021 (2nd ATH), and you'll see it also has lost value.
Next time read up on leveraged tokens and how they work.

Yes I assume that's right, it validates what I just read on blogs etc. It's not really how FTX was marketing these tokens, though. Maybe if I had got into the fine print on their site. But on the other hand, I would have lost everything if they worked in the way I interpreted them to work. But very well just found it interesting to trade for a while, not the end of the world. Then yes that seems reasonable that the bulls from Jan 2021 was still in a loss Nov 2021 because the levels around the ATH was just brief.

KingZee

sr. member

Activity: 938

Merit: 452

Check your coin privilege

Quote from: Dyneema on June 16, 2022, 09:17:17 AM

I bought some "3x short Bitcoin tokens" 7/25/2021 on FTX when the Bitcoin rate was BTC1/$34175 for 329USDT. 1 btc have been around $40000 for a long time now, and currently it's even down to ≈1BTC/22000 but my 3x short Bitcoin position is still currently only worth around 111USDT. I understand it's about time and value of an underlying asset. I also learned about "volatility decay" then there is a fee on this leverage. Furthermore, I don't think btc will fall much under $20000. But how long will it take for my short position to
recover in this bear market, will it ever?

Leveraged tokens are absolutely terrible in the long-term. This is the cost you pay for the "no-liquidation" perk.
Go read up more about them, but they re-balance every day, meaning when the market is not volatile, you lose money, when the market is going up, you lose money.
Honestly, unless you expect bitcoin to repeatedly go down in a manner that each day is a red candle increasing the value of your leveraged token, there's no way you're going to make money.
To put it into perspective, go look up the BTCBULL token price from January 2021 (~30-40k) to Nov 2021 (2nd ATH), and you'll see it also has lost value.
Next time read up on leveraged tokens and how they work.

Dyneema

newbie

Activity: 4

Merit: 0

I bought some "3x short Bitcoin tokens" 7/25/2021 on FTX when the Bitcoin rate was BTC1/$34175 for 329USDT. 1 btc have been around $40000 for a long time now, and currently it's even down to ≈1BTC/22000 but my 3x short Bitcoin position is still currently only worth around 111USDT. I understand it's about time and value of an underlying asset. I also learned about "volatility decay" then there is a fee on this leverage. Furthermore, I don't think btc will fall much under $20000. But how long will it take for my short position to
recover in this bear market, will it ever?

Topic: Can my FTX short position make a recovery? (Read 248 times)