Topic: Margin trading in crypto good or bad? - page 3. (Read 4448 times)

Stop-loss? Hell, most exchanges are set up in such a way that this is pretty easy without special interfaces.  After the initial buy, some exchanges let you set up a sell trade with a bottom limit, meaning that the trade only fires at the price or below, rather than simply dumping your new assets at a scary low price and sitting slack jawed after it happens.  

What?helping for increasing the volume of the coin? margin just helping the trader have seen about the condition a of coin and becoming a place for trade their coin and no including for increasing the volumes in my mind.

Margin trading for coins can help increase their volume and liquidity which can be very good.

There are a lot of terms being tossed around, lol.  What the OP linked to is a pretty standard model of margin trading, or trading against an amount that is not actually owned by the trader.  This is actually a pretty crazy thing to do with crypto, for the site, not the trader.  When I was young I had a Nintendo and a casino game, I think “Caesars Palace”, now bear with me, this relates. 

well, then they should call it something different, lol.  i think in stocks that is something like equity trading, lol.  I was peeking more at it too, it looks like other users are covering the margins in some cases, as loans

Margin trading using any type of funds is BAD BAD BAD.  Why trade with money you don't have??  Leverage is BAD BAD BAD.  Just don't do it.  Trust me, I have experience and here's how my experience went.

Hit it big margin trading, but greed makes you want to leverage more..and in the end, lost it all and MORE!  Cuz that first time you did so well, kinda makes you want to keep chasing it.

it's not how it works there... you need a collateral to do margin... you cant lose what you dont have because your margin will be ended by the system after you lose 80% of your colateral. it isnt credit.

OMG, I am on Polo all the time and have even looked at the margin trading without the obvious kicking in.  Who covers these margins on anonymous accounts?  Setting up multiple accounts is illegal if used to defraud, but there are those that do not care.  And I can picture a new person losing big and against a margin and simply not being able to ever fix it.  I really gotta look at this more, lol.  Margins on my FIAT stock sites are based on factors.  I assume that they do a credit check during the first few days after sign up and know exactly what margin they are giving a person.  But that is not possible on Polo.  I guess everyone gets the same margins or maybe aged accounts get more.  

I just never thought past simply seeing the options, lol.  Imagine my friend asking to borrow ten bucks, ok I know him, no problem.  But when "account number 0052266" appears wanting a loan, lol, wow, amazing.

The stop loss is very important in the margin trading. If you do not exit when the loss builds up, you will lose a lot.

you dont know what you're talking about...

a trader who doesnt know what is a stop loss isnt a trader... dont mistake gamblers with traders (doesnt matter if you are in stocks/forex/commodities/crypto, if you dont know how it works, you're gambling).

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@topic
margin is ok, but you need to learn a few basic things before you start or you will end up losing everything.

I dont understand how margin trading work. Could someone tell me how it work? Or you can give me an article about margin trading?

Margin trading is a double edged sword. You can profit if you get the trade going as you expected it to. If not, then you're in neck deep trouble. IMO, it's better not to use margin trading unless you really know what you're doing and don't let greed get the best out of you. You'll end up paying a higher price if you can't control your greed.

Trading on leverage/margin is good if you win but bad if you loose. Dependant on your appetite for risk.

@Jjtjjt. I could have not said it any better myself. Margin trading is good if you know what you are doing. It is the opposite if you don't. So it would be better to stay away from it if you love your money so much. Trading cryptocoins is like betting in a casino. You will lose many times and using margin will compound this.

Invest what you can afford to lose, i.e 500 bucks, and try to turn it into 50k.  Don't take 50k turn it into 500.  Margin trading isn't bad.  When people tell me it is I don't listen to what they're saying, I listen to why they are saying it.  Life is a soccer game with defenders.  If you listened to someone everytime they tell you it can't be done you'll never make any $.

Yep a whale that also know your exact Margin Trading details and can move the market whenever they like to grab your collateral.
I am sure they are glad that does not bother you.

Say, saw your Mom's was a Pole Dancer (according to your Post)
Wasn't in Georgia late 80s to mid 90s was it and how old are you again?

So I know if I need to say:


 


FYI:
Whew Never Mind, No Worries, Just Remembered I had my Shields Up.

Got my butt handed to me on margin trading. So it's a no go for me.

I don't use them for longs, but shorts is a different story.

Worshiping at the Altar of Stop Loss Orders also has issues like below.
It is still a rigged game, in favor of the exchanges.
Worst thing is people like the guy below explain why you should not use them at all, which places the original danger right back in play.
http://www.swing-trade-stocks.com/stop-loss-orders.html

FYI:
Unless you are Hillary Clinton with insider info, expect to Lose:
http://community.seattletimes.nwsource.com/archive/?date=19940330&slug=1902853

Yes, Kiklo, you can lose a bazillioin dollars if you have no idea how to use a stop loss order.  That's why people that have no idea what they're doing shouldn't use margin.   Traders like it for a few reasons.  It allows you to use the asset itself as your core position instead of fiat for collateral, which most people say is a bad idea, but if you believe it's going to increase in value while your fiat isn't, hey, why not.  It allows you to make money when volatility is low as well.  It also gives you more margin of error to dollar cost average trades that don't go your way.

You could technically call this "throwing good money after bad", but it usually works.  I was doing some small trades in BTC earlier just scalping a few bucks.  I had one trade not go my way and put me down a few dollars.  So what do I do?  Just make my position bigger while being near the right side of the market.  Now my bigger trade on the right side has canceled out my smaller trade on the bad side and I basically break even even though my original pick wasn't correct.

Margin in altcoins is ridiculous though.  There's not enough liquidity, so people on the buy side receive no benefit from being able to place larger orders, while on the sell side, it just makes it too easy to implode markets where nobody will want to go near them.