WTF is happening? There have been dozens of whales getting absolutely ruined today

Bill Gates is shorting BTC

>dumbass places trade on 100x leverage
>price on coinbase and bitstamp move .1% against dumbass
>dumbass gets liquidated
>hurrrrr nigger cucked me wahhhhh
only the dumbest retards think he would liquidate traders artificially.
its completely against his best interest

Attached: 1496606735424.jpg (790x695, 46K)

I dont think you know quite how margin trading actually works its a total scam overall. This is an unregulated market remember. I signed up for an account and bitmex spammed me to trade for weeks till i blocked their email. Thiers an incentive look up anton kriels lecture on trading for more detail. The whole sytem is automated for the exchanges best interest and to expend as little capital as possible. Some contracts are not filled etcetera.

What's the matter? Poor pajeet thinks 100k is a lot of money? lmao

This is true. There's a reason Bitmex has an entire "Liquidation Engine" in the background. You'd think if it was just simple fair math you wouldn't need that.

You're right. margin is a greed trap.
Say you can guess market direction 60% of the time. There's still a 22% chance that you'll get 3 losses in a row..
So say you risk 5% of your account, you get unlucky, you're down to 84% of your starting account balance. To just get barely over break even, now you need to win 4 straight in a row. This is very improbable. Since the point of starting was to get rich fast, none of these margin traders have the patience to play it safe and lower risk while in a down turn. The "make it rich scheme" turns into a "gotta make my money back fast"

Most margin traders are looking to "make it" through margin trading, that's the entire point of it. You don't have enough money to make real gains trading, so you borrow.
We saw a measly 5% risk is very difficult to recover from when you lose. Margin allows people to risk 20%-100% of their accounts.

Even if they get lucky at first, maybe 6 straight wins, we'll see they eventually go back to zero in their account. Margin exposes yourself to large % losses of your account, which mathematically means you must sustain a godlike winning percentage to break even in the long term.
If you start with $10k, turn it into $50k, are they going to at least take $10k out? usually not, they recognize that extra $10k in the account could be $100k with the next trade.

Exchanges use this to their favor, and know in the long term, with many traders it's mathematically impossible for them to lose. The higher the leverage the faster they go broke.

He bought!

I didnt read any of that faggy shit senpai

I read all of that faggy shit senpai

kek
you are fucking stupid and you shouldn't trade on bitmex.
they are nice enough to provide instructions to you if you are smart enough to read them.
also post screenshots of the email, because i literally never get email other than notifications or blog posts

yes, its a trap for stupid idiots.
its also great if you aren't stupid, and you realize that the leverage slider doesn't actually have to be at 100x
keep it at 5x and below and its pretty unlikely you will be liquidated.

the liquidation engine is just what its called lol
it takes your position over and liquidates it without market dumping it and fucking everyone else over.
imagine if this 10 mill liq got market dumped.
it's basically a bot that handles it automatically.

you dumb poor pajeets

you cant 100x on bitmex once you get above a certain $ value

with a 10 mil bet you can only leverage 10x - this fucking goober lost 1 mil minimum

>Most margin traders are looking to "make it" through margin trading, that's the entire point of it. You don't have enough money to make real gains trading, so you borrow.
>We saw a measly 5% risk is very difficult to recover from when you lose. Margin allows people to risk 20%-100% of their accounts.

Very true. Makes one wonder why these marginfags don't just take out a personal loan and put it into a diversified crypto folio and HODL, it's the same principle (borrowing someone else's money to get rich), much better probable returns over time, but vastly less risk. Still stupid, but less risk.

>its also great if you aren't stupid
I like to hang out in trollbox and watch people like you get rekt

haahaha its almost like you didn't see the part where I said keep it under 5x you fucking shit for brains

>There's still a 22% chance that you'll get 3 losses in a row..
You mean 3 wins in a row.

What matters more is the % gains vs. % losses. Its possible to keep losing and win.

Anyways, margin trading is worse than a coin flip so the average person should not be doing it.

>but of course MY special system is different

Yeah my method actually makes money you dumb shit.

its not special you retard, its math.
if you short on 1x its LITERALLY impossible for you to get liquidated.
longing on 1x is basically impossible to be liquidated
if you use 100x, it only needs to move 0.1% to liquidate you.
you said you like to watch people get liquidated.
i'm trying to help people not get liquidated.
you're a cunt.

who boy

who boy what faggot?
show us how smart you are by proving me wrong.

100x is 1% move you brainlet

>the liquidation engine is just what its called lol
>it takes your position over and liquidates it without market dumping it and fucking everyone else over.

It's not that simple. There's some crazy fractal math going on behind it. Ever noticed that your leverage is constantly changing? Ever noticed how it's not actually what you set it to be?

Your "leverage" changes as your p&l and margin changes you dumbass, when you have it set to cross. It enables you to use your unrealised p&l to as margin.

No wonder your idiots lose everything and then blame the exchange. Too retarded to read the documentation before you start putting money down.

Its actually not either, its more like 0.5%

Attached: liqPrice.png (1095x625, 85K)

Because it depends on your risk limit (position size) which would determine the % maintenance margin requirement.

Assuming no maintenance requirement.
1x -> No move will clean you
5x -> 20% move will clean you
10x -> 10% move will clean you
50x -> 2% move will clean you
100x -> 1% move will clean you

yes, ONLY 100k

if 100k is life changing money to you then you're either a 3rd world street shitter or you still live in your moms basement and have never worked a day in your life.

Would I be happy to have 100k? ya why not, sure, but it wouldn't change my life at all

>1x -> No move will clean you

Dude 100k could be 1 mil on Buttmex 10x leverage with ONE TRADE

hmm 100k

>can't buy a house
>can't settle with gf
>can't retire
>probably retire 5 years early as an addition to the rest of the vangard etfs I hold.

Yep sounds about right.
Gotta go for 2-4m now days.

Fair enough but why is the calculator wrong?
What am I missing?

itt: biz brainlets still don't understand that a liquidation doesn't necessarily mean "money lost" and could as likely be a hedge with 10x more bet on the other direction

Everyone seems to have forgotten that the big banks are taking over crypto with the futures markets. They are way more competent than the whales, poor little whales are going to keep getting sliced into whale meat steaks to get eaten by the wall street boys until theres nothing but bones left.

Calculator is not wrong

bitmex.com/app/riskLimits

Base initial margin is 1%
So you need to maintain 1% margin in addition to 1% of your equity.

On 100x
At a 0.5% move against you, you'd have lost 50% of your account.
However you needed to put up the other 50% of your account to fulfil the maintenance margin of your position. So you're account balance is now zero.

If your position is $10,000, your account is $100. You are leveraged 100x.
You put up $50 (1% of $10,000) as your base initial margin.
The rest $50 goes in as your account equity.
At at 0.5% move against you. You've lost half of your account ($50). The only thing left is the margin, so mex liquidates your position and takes your margin. Leaving you with nothing.

Thus a 0.5% move will liquidate you.

Right so we were both wrong at first, and its definitely 0.5% on 200xbt risk limit
not 1% or 0.1%

>$50 (1% of $10,000)
i might be drunk, but isnt 1% of $10,000 equal to $100?