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It's Happening? The Zerpening!


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32 minutes ago, Zedy44 said:

I hope.  The nice thing is the $165 billion or so that came out will bring new money in with it.  So the next rally will look even stronger than before.  Of course we have to relive this dramatic crap over and over, but hey...that's why we have each other.

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REW FEE OHH! Hell yes we are a fam here!

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2 minutes ago, dabaker56 said:

so basically, buying on margin is the opposite of shorting?

you need the price to go up instead of down?:unsure:

It's like a home mortgage 

 

Say you put 20 percent down and the house goes up 20 percent in value. The money you put in just gained 100 percent. But unlike  The money you put in just gained 100 percent.

 if things really go on the shitter you can't  just move and leave the keys for the bank to find 

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22 minutes ago, dabaker56 said:

so basically, buying on margin is the opposite of shorting?

you need the price to go up instead of down?:unsure:

edit: Just to clarify.  Margin trading != opposite of shorting.  You can in theory margin trade short positions, but I'm not sure that exists today for crypto.  Margin trading is the act of trading via a loan extension from the exchange.  You are trading on borrowed money.  Kind of like using a credit card with a limit set to some leverage amount.

edit2: I should also state I am not a margin expert.  I've dabbled in margin trading with options on SEC regulated securities in the past.  You DO need to margin trade to be able to short an asset.  It's the only way to essentially "buy" something you don't actually own.  So yeah maybe in that regard buying on margin is equivalent to opposite of short selling.  I never used margin trading in regular securities to initiate a short position before.  Too risky for my taste.  Options were a lot safer.

If you are buying on margin and the price drops below your entry point enough, then based on your account size the exchange has the right to completely liquidate your positions to cover the potential loss from your margin trades.  Generally they rake some profit with that.  Trading on margin is simply trading on a loan.  The amount of leverage is usually set by the exchange and your buying power is ultimately based on your total account size.  For example Poloniex offers a 2.5x leverage.  So if you had $10 they'll allow you to trade like you have $25. 

Now imagine it's $100k and they're letting you buy crypto in this kind of volatility like you have $250k.  One bad bet or an unlucky sellof and poof.  Your $100k goes up in smoke.

Edited by Zedy44
Clarification.
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2 minutes ago, RalphWaldo said:

So 40% drop after a 400% gain is a net of 360% gain. I'll take this every few weeks please. 

 

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40% drop after a 400% gain is actually a net gain of 240% 

 

 Think about it… 

 Keep thinking about it… 

 Use a calculator and think about it… 

 They are called numbers 

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