How realistic is it to use compound to short cryptos.
Let's say I put 1000$ worth of dai into Compound and borrow maybe 2 eth at 170 each (340) and then sell and put the DAI back into Compound and wait for a drop. Drop comes I buy back the 2 ether plus interest for less dai and keep the difference. In what situation would my dai get liquidated. Like if ether goes up instead of down would that count against my collateral (I'm thinking yes but idk). Is it worth paying the apy or is margin trading basically the same this with more or less risk? Tryna find the best way to short. I was also looking at eth bear token but can find an exchange I'm able to use to buy that.
Attention my fellow majestic gay bear dumbfucks. If you think this little S&P spike will stop me from taking my remaining savings to put $SPY 240 3/6 you need to be hospitalized in China. I am doing something far crazier. I’m already out of money, but I know a way to make it all better. They let you margin trade (basically free money) so I plan on winning it all back by switching back to being the DICKSWINGING BULL that I am. Call $AAL $25 3/6
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Use the PrimeXBT Help Center to search for answers to commonly asked questions. There’s lots of info there to help guide you through your PrimeXBT account and learn the basics of margin trading. Check out this thread or see for yourself at https://help.primexbt.com
I just watched that Margin Trading Basics video earlier this week and thought I'd try station trading out. Been meaning to for a while so I figured why not. So I'm happily placing buy and sell orders and finding some good items with 10-15% margin that are moving fast. Yay I'll be rich in no time! Then I refresh the market and see some jerk plopped 100 of that item down at a super low price killing the margin for that item. This happened a few times so I figured it wasn't just some moron screwing up. Why do people do this? The only guess I can make is that this might be people with larger stockpiles who want to chase off the people that are buying/selling 10-20 of an item and playing the .01 isk war like a maniac. Is this done to "cool off" a hot item?
Let's say I hold 100 ETH and i have leverage trading options of 2 and 5. I want a margin position long 10 ETH. I could use either of the two leverage options, but why would I ever choose 2:1 over 5:1? I realise that at 5:1 for every 1 ETH I want to go long I need 0.2 ETH of equity available. I could hold positions of up to 500 ETH. Given that I only want to hold a 10 ETH position should I be using 2:1 leverage? I don't understand why using a lower margin is ever beneficial to the trader? Thanks EDIT Lets compare two examples: I have 100 XYZ, and a position of 100 XYZ at 2:1 leverage that I bought into when 1 XYZ costs $1. If the price of XYZ drops by 30% then I owe $30 for the position and I hold $70 of XYZ. I have to hold a balance of at least half the original margin trades' value in my account due to my leverage being 2:1 (so i have to hold $50) otherwise I'll get margin called / liquidated, which would then happen as the value of everything I hold is now only $40. I have 100 XYZ, and a position of 100 XYZ at 5:1 leverage that I bought into when 1 XYZ costs $1. If the price of XYZ drops by 30% then I owe $30 for the position and I hold $70 of XYZ. I have to hold a balance of at least one fifth of the original margin trades' value in my account due to my leverage being 5:1 (so i have to hold $20) otherwise I'll get margin called / liquidated, which doesn't happen as the value of everything I hold is now $40. So I live to fight another day with all my positions in tact whilst hoping the price comes back up. In both examples, if I exit out of the positions at a loss I'm losing the same amount, its just that with 5:1 leverage I'm not forced out of the position until i've endured greater losses So if my example are correct its better to use a higher leverage? What am I missing here? Thanks again
Margin trading can be done short (where you bet on the price going down) or long (where you bet on the price going up). Further, it can be used to speculate, to hedge, or to avoid having to keep your full balance on an exchange. Below we explain the basics of margin trading and warn of some of the risks. Margin Trading. In the stock market, to trade on margin means to purchase or short stock on credit. When buying stock on margin, a customer can borrow up to 50% of the total cost from the brokerage firm. Futures Basics. Futures Basics Futures Contract Specs Futures Margin Long Futures Position Short Futures Position Long Hedge Short Hedge Understanding the basics of margin trading. E*TRADE Securities. 06/30/20. Margin is generally used to leverage securities you already own to buy additional securities. Margin allows you to borrow money from your broker-dealer in order to increase your buying power. Since margin is a loan, you can think of securities you own in your cash account Margin trading basics ★ Margin trading pairs and their maximum leverage; Explanation of leveraged trading; How to margin trade using leverage; Opening a margin position; Closing a margin position; Settling a margin position; Flipping a margin position; I opened a margin position but there is no change to my currency balances? Where do funds In the Forex world, brokers allow trading of foreign currencies to be done on margin. Margin is basically an act of extending credit for the purposes of trading. For example, if you are trading on a 50 to 1 margin, then for every $1 in your account, you are able to trade $50 in a trade.
Margin Buying Basics by Wall Street Survivor - YouTube
⚡️ Welcome Welcome Group "Margin Trading" Gather a Closed group, and while out instructions and deals ===== Ký Advertising sign: BingBon: https://bit.ly/bingbon0 (Transactional copy floor ... Brian explains the basics of margin trading to answer this question. ... Trading basics: How moving averages work - Duration: 5:13. Cryptocurrency Trading 5,732 views. 5:13. ... What is margin trading? What is a margin? What is the difference between a cash account and a margin account? In episode #34 of Real World Finance we dive de... In this video, we will introduce you to the basic concepts that are necessary for margin trading on the https://50x.com exchange. Video about cryptocurrency ... A margin is a loan that brokers provide to stock traders. As with every loan, margin bears interest unless the stock trader uses it only during the course of the trading day, in which case no...