Please help this noob understand how margin trading works in bitfinex
Hello, Long time hodler here, I would like to put a very small amount of my coins into bitfinex into a leveraged long position. Just a few Qs about how to do this. 1) It seems bitfinex offers leverage of 3.3 only- you cannot choose anything else- is this correct? 2) I am betting that bitcoin will go up versus the dollar. Does that mean I have to convert my btc into USD first or something? Do I need to start with USD or BTC is essentially my question! 3) Does the maths of it work like this: if bitcoin goes up in value by 1/3.3 times (30%) would the value of my position double? And if the value goes down 30% I would be liquidated? 4) I intend to 'hodl' my position somewhat (I like hodling, it has worked well for me so far)- I would plan on closing it only after it has gone up significantly- or if it liquidates due to a drop. Maybe I would keep it open and untouched for a couple of years. Is this a ridiculous strategy for some reason? Perhaps the margin funding is prohibitively expensive over this timeline?
I have been day trading for some time in a cash account and I have been considering applying to upgrade to a margin account. I’ve been googling for the last few hours trying to find an answer to a specific margin question with a frustrating lack of resolution. Bear with me. Let me first start by saying that I know what margin is and I fully understand the PDT rule. The answer that I am looking for is not an explanation of what they mean (which is all I got from google). I am trying to understand the effect of my buying power after having already completed a day trade. I read somewhere that margin can cover all of my trade if, of course, I choose to use only margin and if I have the margin buying power to do so. I’m not sure if this is true and if it isn’t true, please someone let me know, but if it is true what is my buying power after my following example... Hector is an active trader and he has an account with $25k cash and a 4:1 margin. So obviously $100k buying power. Hector buys 25 shares of ABC at $1,000 per share totaling $25,000 and he chooses to fund 100% of this purchase with margin. 30 minutes later he sells his position for $1,100 per share. A profit of $2,500. Later that day he spots another trade opportunity. What is his buying power for that second trade? Is it $75k because he already used $25k of his initial $100k buying power? Or is it still $100k because he didn’t use any of his actual cash to fund the original trade? I’m sorry if this is a stupid question or asked in a very drawn out way but there seems to be no easy way to ask this.
Hi all, I don't really understand how margin works in day trading. Does the broker divide the yearly interest rate into a daily rate (like credit card issuers), and then charge you by the day? After all, you're borrowing and returning the money within hours. Thanks!
Crypto exchange with margin trading: How does it work?
Whether you are a trader or an exchange owner, you can certainly make profits from crypto margin trading. If you are planning to build a crypto exchange with margin trading, read on the blog for an in-depth understanding of margin trading to make well-informed decisions during your development journey.
How do losses and Profits work in Intra day trading margins?
Hey , I am new to this trading thing , now I know that intraday is risky but still i want someone to explain to me regarding the calculation of loss in margin trading. Say for example I've got 1,000 in my account and I get a margin of 15x , so if I buy shares Worth 15k and end up making a loss if more than 1,000. How is it deducted from my account?? Can someone pleasee explain regarding margins
How does margin trading work on kraken/ other exchanges
If I have $500 worth of xrp and I get 3x leverage what happens after that. Is it like an options type set up where I set a date and I take profit if the price is at what I expected it to be at on that date. Or am I just getting 3x the amount of XRP,, I’m pretty confused.
How Margin Trading Works. Margin trading is a very common method that is used by many Wall Street traders. Retail traders too use the strategy to maximize their returns. The process works in a very simple way. First, you need to select a broker that offers margin trading accounts. Internationally, many forex and CFD brokers offer this type of What is Margin trading and how it works? Modified on: Tue, 4 Aug, 2020 at 1:03 PM. Margin trading (or trading on margin) is a concept that many traders use to maximize their profit-earning potential. By trading on margin a trader may select an order size that is larger than the amount they have in their account. In other words, it means that a Margin trading allows you to buy stock with money you've borrowed from your brokerage firm, which allows you to purchase more. Get more details on trading and buying on margin and see how it works. Most cryptocurrency exchanges provide an oppotunity for margin trading. What is margin trading? We are going explain the concept. Trading on margin with high leverage isn’t for every kind of trader. It is more suitable for short-term trading styles such as scalping, or day trading because these styles are seeking to extract profits from tiny price movements.
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