Topic: Margin trading in crypto good or bad? - page 4. (Read 4448 times)
Margin trading in anything is a tool of exchanges to rid you of your money. They can see how much you got and can force the price to go just enough to close your positions and pocket your capital. Don't do it.
LOL, I remember that day too. How could I ever forget it!
My low ball buy orders were filled during a whale dump. Happens all the time. Whales buy high too.
My low ball buy orders were filled during a whale dump. Happens all the time. Whales buy high too.
Or more Likely an Exchange DUMP.
What are you doing on an exchange if you don't want volatity?!
I live for volatility.
I want all my orders to get filled, the buys and the sells.
Anyone who hates price volatility can eliminate it completely with Smartcoins. Everyone else is looking for it on the exchanges.
I live for volatility.
I want all my orders to get filled, the buys and the sells.
Anyone who hates price volatility can eliminate it completely with Smartcoins. Everyone else is looking for it on the exchanges.
Volatility comes from the buying & selling , and that is what truly drives a market.
And when you buy or sell your coins, you are limited to that amount gained or loss.
Where as People dumb enough to Margin Trade without having insider information , can lose Many Times the amount they put up for collateral.
Mess up trading the normal way , you only lost the coins or amount invested.
Mess up with Margin Trading and Lose Everything you Own.
Your Choice.
FYI:
At least be informed:
http://www.marketwatch.com/story/help-my-short-position-got-crushed-and-now-i-owe-e-trade-10644556-2015-11-19
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His name is Joe Campbell, and he claims he went to bed Wednesday evening with some $37,000 in his trading account at E-Trade.
One notable development on the pharma front later, and Campbell woke up to a debt of $106,445.56.
Now, he may end up liquidating his 401(k). And his wife’s.
One notable development on the pharma front later, and Campbell woke up to a debt of $106,445.56.
Now, he may end up liquidating his 401(k). And his wife’s.
FYI2:
https://bitsharestalk.org/index.php?topic=17141.0
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Hey guys,
Just have an interesting case study of my trading experience on Poloniex last week. I traded on Poloniex's margin trading platform and was margin called on June 15th 17:15 when the prices went from .000029 BTC per BTS to .000014 BTC per BTS back to .000028 BTC per BTS in a ten minute span. (Down 50% in less than 10 minutes!) I didn't realize the liquidity was so low on Poloniex, but it's interesting to know what can happen. I lost a chunk of money.
I think someone or some bot just ran down the book on all the buy orders and got the price really low to trigger all the margin calls and bought back at low prices, but not sure of the exact mechanics.
Just have an interesting case study of my trading experience on Poloniex last week. I traded on Poloniex's margin trading platform and was margin called on June 15th 17:15 when the prices went from .000029 BTC per BTS to .000014 BTC per BTS back to .000028 BTC per BTS in a ten minute span. (Down 50% in less than 10 minutes!) I didn't realize the liquidity was so low on Poloniex, but it's interesting to know what can happen. I lost a chunk of money.
I think someone or some bot just ran down the book on all the buy orders and got the price really low to trigger all the margin calls and bought back at low prices, but not sure of the exact mechanics.
cant deny margin trading causes higher volatility, higher volatility definitely hinders use as normal currency , so I think my point is valid 
So freedom of choice is "bad" ?
Who are you to tell me what I can or can't do?
Margin trading is allowed in the free market, and you are free to hate it.
Since margin trading is a choice, it is good. People who restrict the choices and freedoms of others are "bad"
Who are you to tell me what I can or can't do?
Margin trading is allowed in the free market, and you are free to hate it.
Since margin trading is a choice, it is good. People who restrict the choices and freedoms of others are "bad"
Is it good for crypto? Because it increases volatility and I think we all want crypto to successful right?
Margin Trading won't make any difference whether Crypto succeeds or not.
It is only a way for Exchanges to steal money from the stupid.
Part of the reason for crypto is to leave our Debt Based Fiat System behind, not create a Debt based Crypto system.
I still don't understand how margin trading works. shorts? longs?
Could someone explain all this to me like I'm five? Every time I've asked, the descriptions were filled with words that I didn't understand/wasn't able to put in context due to lack of knowledge. I have accounts on all major exchanges, so an example through, say, poloniex's system would be ideal. Been trading for a while with good returns, but have never been bothered to do enough research on margin trading, how it works, etc.
Thanks in advance
Could someone explain all this to me like I'm five? Every time I've asked, the descriptions were filled with words that I didn't understand/wasn't able to put in context due to lack of knowledge. I have accounts on all major exchanges, so an example through, say, poloniex's system would be ideal. Been trading for a while with good returns, but have never been bothered to do enough research on margin trading, how it works, etc.
Thanks in advance
https://poloniex.com/support/aboutMarginTrading/
So freedom of choice is "bad" ?
Who are you to tell me what I can or can't do?
Margin trading is allowed in the free market, and you are free to hate it.
Since margin trading is a choice, it is good. People who restrict the choices and freedoms of others are "bad"
Who are you to tell me what I can or can't do?
Margin trading is allowed in the free market, and you are free to hate it.
Since margin trading is a choice, it is good. People who restrict the choices and freedoms of others are "bad"
Is it good for crypto? Because it increases volatility and I think we all want crypto to successful right?
I still don't understand how margin trading works. shorts? longs?
Could someone explain all this to me like I'm five? Every time I've asked, the descriptions were filled with words that I didn't understand/wasn't able to put in context due to lack of knowledge. I have accounts on all major exchanges, so an example through, say, poloniex's system would be ideal. Been trading for a while with good returns, but have never been bothered to do enough research on margin trading, how it works, etc.
Thanks in advance
Could someone explain all this to me like I'm five? Every time I've asked, the descriptions were filled with words that I didn't understand/wasn't able to put in context due to lack of knowledge. I have accounts on all major exchanges, so an example through, say, poloniex's system would be ideal. Been trading for a while with good returns, but have never been bothered to do enough research on margin trading, how it works, etc.
Thanks in advance
So freedom of choice is "bad" ?
Who are you to tell me what I can or can't do?
Margin trading is allowed in the free market, and you are free to hate it.
Since margin trading is a choice, it is good. People who restrict the choices and freedoms of others are "bad"
Who are you to tell me what I can or can't do?
Margin trading is allowed in the free market, and you are free to hate it.
Since margin trading is a choice, it is good. People who restrict the choices and freedoms of others are "bad"
Hmm,
Where did you see any mention of removing Freedom of Choice?
I think margin trading is certainly bad for alt currency. crypto currency in volatile even without leverage, with the added option of leverage it makes the swing even more dramatic which makes it usability as a currency even more difficult.
when ever there is a Bitcoin or ether reversal some exchanges conveniently shut down for maintainence or the currency in question mysteriously vanishes from exchanges.
when ever there is a Bitcoin or ether reversal some exchanges conveniently shut down for maintainence or the currency in question mysteriously vanishes from exchanges.
Margin Trading is bad in Crypto and bad in Stocks.
You can't be a winner at Margin trading unless you have inside information , which makes it insider trading and illegal in the US.
When you Margin Trade and it goes the other way you can end up owning many times more than the Value of what you Borrowed.
That is how people lose their Homes and everything they own.
http://beginnersinvest.about.com/cs/newinvestors/a/040101a.htm
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Buying stocks on margin is one of those things that might sound appealing on the surface. The pitch usually goes something this, "If you have a few thousand dollars in your brokerage account, you might qualify to borrow money against your existing stocks at a low interest rate to buy even more stock, leveraging your returns!" The reality is that trading on margin is an inherently speculative strategy that can transform even the safest blue chip into a risky gamble. It allows people and institutions desiring to get really aggressive to buy more shares of a company than they could otherwise afford. When things go south, it can get really ugly, really fast, even leading to personal or corporate bankruptcy.
I've even used some real-life case studies to demonstrate how terrible the consequences can be. One man, Joe Campbell, woke up to find himself $106,445.56 in debt to his stock broker due to a margin position that went against him. Many, many other individuals lost everything when they swung for the fences, some using margin debt, buying more shares than they could afford of a company called GT Advanced Technologies, which went bankrupt.
I've even used some real-life case studies to demonstrate how terrible the consequences can be. One man, Joe Campbell, woke up to find himself $106,445.56 in debt to his stock broker due to a margin position that went against him. Many, many other individuals lost everything when they swung for the fences, some using margin debt, buying more shares than they could afford of a company called GT Advanced Technologies, which went bankrupt.
Yes.
I think margin trading is certainly bad for alt currency. crypto currency is volatile even without leverage, with the added option of leverage it makes the swing even more dramatic which makes it usability as a currency even more difficult.
when ever there is a Bitcoin or ether reversal some exchanges conveniently shut down for maintainence or the currency in question mysteriously vanishes from exchanges.
when ever there is a Bitcoin or ether reversal some exchanges conveniently shut down for maintainence or the currency in question mysteriously vanishes from exchanges.
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