Hey guys, it is my understanding that with the Bitfinex policy change that you can actually short more than you used to be able to AND the margin calls come slightly earlier. This would be a non-issue if we were still trending up, but keep a look out for this.
You used to be able to get effectively 3.33 leverage on a long by buying bitcoin and then longing with the bitcoin as collateral. However, that equation doesn't work out as unless you can short without a margin account (that I don't know!!!!! So somebody clean up this thought and in the meantime take this with a grain of salt).
You used to be able to get effectively 3.33 leverage on a long by buying bitcoin and then longing with the bitcoin as collateral. However, that equation doesn't work out as unless you can short without a margin account (that I don't know!!!!! So somebody clean up this thought and in the meantime take this with a grain of salt).
On this point... it now says that I have a tradable balance, but it isn't letting me short any further -- it is cutting me off at the old 2.5 leverage mark despite the system showing the change.
=S
UPDATE... system caught up... was able to short all the way.
If you really are a newbie be careful with leverage. Most people (myself included) have been burned by the market whipsawing or hitting stops with huge unexpected moves. Bitcoin is scary volatile. Good luck!
