Questions about leverage/margin positions.

[Dreykku]

Hi,

I'm still learning about the world of trading and leveraged position particularly. And I had a couple of questions on it if you don't mind helping me answering them.

On kraken especially, how does someone "increase" his position on a leveraged position ? meaning consolidating it, by borrowing even more to keep going long (or short) ? The only thing i can do is to open a new long or short position and I end up with a bunch of little short (or long) position on the same crypto, is it possible to merge them all ?


And also, it could seem obvious to you but I'd like to know what does margin fees mean exactly, I'm talking about the running marging fees, in the case of Kraken, 0.01% every 4 hours, does it apply to only the amount you borrowed ? the amount you borrowed + your current gains ? just your gains ?
Because if one is borrowing 100 000$ and is currently making a x3 on his long position, paying 0.01% of 100 000$ isn't the same as paying 0.01% of 300 000$ for sure.


Thank you for your help.

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[AdolfinWolf]

I'm not entirely sure how the situation on Kraken is, but i've margin traded on Poloniex before, i can't imagine that they're very different.

On kraken especially, how does someone "increase" his position on a leveraged position ?

You basically transfer more funds to your margin trading account, so that you have a bit more "margin" % before you are liquidated. That's atleast how it worked on poloniex.

And also, it could seem obvious to you but I'd like to know what does margin fees mean exactly, I'm talking about the running marging fees, in the case of Kraken, 0.01% every 4 hours, does it apply to only the amount you borrowed ? the amount you borrowed + your current gains ? just your gains ?

It seems very illogical to me to ask for fees over money that hasn't been borrowed from them, but rather is money that you earned yourself,m however this DOES seem to be the case. Take a look over here where someone had more or less the same question as you.

https://www.reddit.com/r/BitcoinMarkets/comments/70w7cw/marginleverage_fees_question_on_kraken/dn6dyqy/?st=jdyvnihj&sh=fe58411d

[Dreykku]

You basically transfer more funds to your margin trading account, so that you have a bit more "margin" % before you are liquidated. That's atleast how it worked on poloniex.

This is not exactly what I was asking, I wanted to know how to (or even is it possible?) keep one and unique long (or short) margin position and "increase" it over time, without having to open a new one every time i want to keep on longing (or shorting) the same crypto.
I have the funds to back it up, it's just not practical to have 4 or 5 margin positions open at the same time instead of one. If I want to close 25% of my position, to take gradually take profit for example, i can't really. I have to close my FIRST margin position I made before the other ones. At least that's how it works for Kraken. Or if I want to gradually margin trade (shorting) on a downward trend to avoid taking too much risk, it's impossible without having to open a lot of margin trades, and it ends up being a mess visually. So it's really not convenient.

Is it the same thing on all the other exchanges ? Can i fix that on kraken ?


Thank you a lot for the reddit post, that's exactly what I was looking for.

[exstasie]

This is not exactly what I was asking, I wanted to know how to (or even is it possible?) keep one and unique long (or short) margin position and "increase" it over time, without having to open a new one every time i want to keep on longing (or shorting) the same crypto.
I have the funds to back it up, it's just not practical to have 4 or 5 margin positions open at the same time instead of one. If I want to close 25% of my position, to take gradually take profit for example, i can't really. I have to close my FIRST margin position I made before the other ones. At least that's how it works for Kraken. Or if I want to gradually margin trade (shorting) on a downward trend to avoid taking too much risk, it's impossible without having to open a lot of margin trades, and it ends up being a mess visually. So it's really not convenient.

Is it the same thing on all the other exchanges ? Can i fix that on kraken ?

I had the same experience margin trading on Kraken. I don't think there's a way to consolidate positions, but I could be wrong. Between the crappy interface and all the downtime, I didn't stick around long.

Bitfinex automatically consolidates all open margin positions into a single "core position"....I think that's what you're looking for. 1Fox (same company as 1Broker) just added the ability to merge open positions, but they just launched the BTCUSD market, so volume is pretty low.

[tbalazs]

You basically transfer more funds to your margin trading account, so that you have a bit more "margin" % before you are liquidated. That's atleast how it worked on poloniex.

This is not exactly what I was asking, I wanted to know how to (or even is it possible?) keep one and unique long (or short) margin position and "increase" it over time, without having to open a new one every time i want to keep on longing (or shorting) the same crypto.
I have the funds to back it up, it's just not practical to have 4 or 5 margin positions open at the same time instead of one. If I want to close 25% of my position, to take gradually take profit for example, i can't really. I have to close my FIRST margin position I made before the other ones. At least that's how it works for Kraken. Or if I want to gradually margin trade (shorting) on a downward trend to avoid taking too much risk, it's impossible without having to open a lot of margin trades, and it ends up being a mess visually. So it's really not convenient.

Is it the same thing on all the other exchanges ? Can i fix that on kraken ?


Thank you a lot for the reddit post, that's exactly what I was looking for.

I think its beacuae Kraken has a set FIFO execution process (First in first out) all broker can decide how they do execution and closing

[Dreykku]

Bitfinex automatically consolidates all open margin positions into a single "core position"....I think that's what you're looking for. 1Fox (same company as 1Broker) just added the ability to merge open positions, but they just launched the BTCUSD market, so volume is pretty low.

Yes bitfinex is perfect but there is still the tether FUD going around, and 1Fox seems very conveniant, but indeed i prefer exchanges will a lot of volume for now.


Wish Kraken didn't have this FIFO rule so i could merge positions too, because they have pretty good fees otherwise (from what I've heard). Then I just need to hope they fix that issue one day or wait until Bitfinex is safe again.

Thank you guys for your help. Awesome forum.