Bitcoin Forum

What is margin trading at poloniex? How does it work? Anyone has experience with it? How is it different than the exchange section of it?

This should be in the trading subforum.

In short, basically you have to deposit inside your polo margin trading account, this balance is kept separated from the exchange account.

Margin trading means you borrow money from other margin accounts whos owners have setup loans, time for loan and interest rates. You use said loans to trade for margin profits similarly to the exchange, with the difference that if you profit from a trade or end of loan period, any winnings you have will have your borrowed sum + interest returned to your lender, you get to keep the profits.
If you lose money, the margin account balance that you deposited will be used to return the base amount you borrowed + interest back to the lender.

Do you even search polo helpdesk before you ask this kind of questions..

margin trading is diference with normal exchange
margin trading is same with forex, you can get leverage(in poloniex 2.5x) so if you have balance 1bitcoin, you can trade use 2.5bitcoin balnce
you can buy or sell anytime you want altchough you only have bitcoin balance
and feature margin call is open in magin trading in poloniex margin call is say liquidation

margin trading it's very simple.
Polo is asking you, just a margin to trade what you want...
if you want to trade something with a 100$ value, and you enable a margin trading with 10%, you need 10$ to trade 100$.
but remeber...in this margin trading example, you loose all with just a loss of  -10%...

Margin Trading is difference in "Normal Trading"

First of all i'm using Margin Tradin in Poloniex.

Margin Trading is in polo have x2.5(leverage) in this if you transfer 0.01BTC it will become 0.025BTC because of the x2.5(leverage), and now "Buy n Sell" in normal trading is just like Margin but in margin you can earn while the coin is dumping unlike in normal trading

This are the two types of buy n sell in "Margin Trading"

1. Buy - is for "Long Position" and it means we need the coin to Pump

(* Buy --> Long Position --> Needs to " Pump" = PROFIT )

2. Sell - is for "Short Position"  and its means we need the coin to Dump

* Sell --> Short Position --> Needs to "Dump" = Profit

Read this https://poloniex.com/support/aboutMarginTrading/
This video can be helpful https://www.youtube.com/watch?v=CY1F4FNAsSU

There are lots of difference between margin and normal trading. One main difference is that in margin trading you are allowed to trade more than your balance.

Thanks everyone for the responses, so what I understood as of yet is that you can actually trade with 2.5x of your balance and if you earn profit you get to keep it after you pay back the leverage plus its interest.

Not sure if I got this though? How is that possible?

Yes you got it right but it is also quite riskier because you can easily loss all your bitcoins in volatile markets.
Also you have to look at liquidation price, this is the price where your all bitcoins will be liquidated/lost.

Ok. This need a good analysis of what so ever your spectulation....

In this you will "Sell" it means coins need to dump to earn.... So if you sell at Highest pump and the next one is dump you will earn btc.....

Example:
                   XRP/BTC
24hr: -25.29% Vol: 75750.719 BTC

                   0.00002945
                  Current Price
L: 0.00002200   H: 0.00007009

As you see if you put an Short Position or "Sell"at the 7k sats and its dumping.... dumping in 2.2k sats in that time you can now close your position and see your profit

Exactly, you trade with a bigger margin so you earn a lot during a gain or lose a lot during a loss.
Like betting with your total. What most people don’t understand is that if you bet say 0.1 on something going up and the margin shows 0.9 win, where does that 0.8 come from for a fraction of movement compared to regular change?

Well that comes from the short ones, people who bet margin on shorting the stock. If you win you get 0.9 for your 0.1 and if he wins he gets 0.9 for his 0.1 bet, basically it is “betting” against another person on the direction of the coin.