Understanding the Risk of Margin Trading

[DasPferd]

Hello,

I'm working on an arbitrage trading bot (Bitfinex) and I want to estimate the real risks of margin trading. I want to trade USD (or TUSD) with BTC.

From my understanding if I short sell Bitcoin, I borrow BTC, sell them and rebuy them later to pay back the borrowed amount. The lending fees are also in the borrowed currencies and add up to the leverage, are they?

If now the BTC/USD ratio rises, the platforms use my USD to backup and buy the BTC automatically, when I may not be able to reverse the lending on my own.

Questions 1)
What is if there is a huge change in the ratio and the platform is not able to rebuy them?

Questions 2)
Is my risk limited to the amount of USD on the account, or can it go no-limit? I read a story about a student loosing 30k.

If I want to include other platforms, e.g. Poloniex where I can't short with TUSD, I need to use two volatile currencies, which increases the leverage as far as I read but I do not really know how to calculate the leverage and risk in there.

Questions 3)
How can I calculate my real risk?

Questions 4)
Can I avoid the leverage (besides the interest) if I only borrow as much as I have backup USD. (I want to keep the leverage risks, small)

[Pioneer88]

One expert on margin trading recommended me to long Bitcoin Cash 30x when its price was 425$. Did not believe in him when I saw the total crypto markets were in red. I missed a good chance.
He told me, chances like that come weekly, he suggested to continue long on Bitcoin Cash 5x-10x leverage even when its price is around 500$ now.
Target 1: 519$, target 2: 534, Target 3: 579$. Hold for some days or even weeks. Stop-loss at 479$ and reentrance at 461$. Good luck!

The only place that you can leverage BCC/USD now is at Bitseven. Remeber that BCC/BTC on Bitmex has another outcome.

I do not respond for any of your loss. You own your risk. Never trade with fund that you're not affordable to lose all. However, I welcome any tips or donation if you win big

[VadikZimnyayaRezina]

I understand you want to create something that is forbidden on the stock exchange, well, then I wish you good luck. And so the risk is not much higher than investing in coins with existing bears.