Closing a futures position at 70700 ADA on margin balance and getting 52000!

[chip1994]

Hello guys,
Donno if anybody could have an explanation. It's pretty frustrating, I longed ADA in Binance futures, had an unrealized ETN of about 6400 ADA and an initial balance of 63000 ADA. I decided to close my position, and, surprise, here is my balance at 52000 ADA!! How could such a thing happen? Am sur that at the exact moment I closed that position my margin balance was 70700 ADA.
That was on COIN futures.

with futures contract , you will have to pay a lot of fees. For exchanges, when you execute a contract, you lose a large fee, the larger the order, the higher the fee.
In addition, when you arbitrarily close the contract when the price goes against what you think you will lose money due to the volatility, in addition to the priority option fee to terminate the contract. That is all fees and losses incurred on your account.

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[crwth]

You are quite contradicting yourself there. Check the bolded area.

I can see the image was not uploaded properly.
Well, I will write it here:
-I bought into the market in long position at the price of 0.14240 for ADA. I had exactly 64452.71 ADA.
-The current positions tab indicated clearly that I bought into the market at price 0.14240.
-I close my position at 12h:51 eastern time.
-Anybody can verify the price of ADA at that time. it was well beyond 0.143 during the entire time of that minute.
-And, the price of my closing position was 0.14111.
-So in fact I have longed ADA, the price went up, and I ended up loosing about 25% of my money at closing my position.

Your opening position of long is 0.14240 and closed at 0.14111. Definitely, you closed a losing position there.

Upon reading more of your post, you said here.

Although guys I will be informing you of what Binance final decision will be, but as far as I'm concerned, I sold that position with a margin of 20x, an entry price of 0.14240 and a closing price of more than 0.143.

More than 0.143? What is it really?

If you pushed the market sell mode, it's going to check on what the latest sell order on their book, and that's where they will send your order through. If I were you, you should've just limit ordered your position to make sure that you are in your profit.

[PaperWallet]

You are quite contradicting yourself there. Check the bolded area.

I can see the image was not uploaded properly.
Well, I will write it here:
-I bought into the market in long position at the price of 0.14240 for ADA. I had exactly 64452.71 ADA.
-The current positions tab indicated clearly that I bought into the market at price 0.14240.
-I close my position at 12h:51 eastern time.
-Anybody can verify the price of ADA at that time. it was well beyond 0.143 during the entire time of that minute.
-And, the price of my closing position was 0.14111.
-So in fact I have longed ADA, the price went up, and I ended up loosing about 25% of my money at closing my position.

Your opening position of long is 0.14240 and closed at 0.14111. Definitely, you closed a losing position there.

Upon reading more of your post, you said here.

Although guys I will be informing you of what Binance final decision will be, but as far as I'm concerned, I sold that position with a margin of 20x, an entry price of 0.14240 and a closing price of more than 0.143.

More than 0.143? What is it really?

If you pushed the market sell mode, it's going to check on what the latest sell order on their book, and that's where they will send your order through. If I were you, you should've just limit ordered your position to make sure that you are in your profit.

I agree, but the latest sell order on their book was more than 0.143. It is my market order that triggered that market crash. You are right about the limit position, and I did not know that, maybe next time (if ever).

So ok, now you could argue it was my mistake, and I agree. But I can't think of this "market" button anything else than a money transfer button disguised as "market order".

Have you seen the chart? If liquidity can disappear and reappear just because YOU are making an order, it's a more complicated way of saying somebody is stealing some money. You CAN NEVER VERIFY the liquidity of a market. All the orders you see will just disappear because you made a "market" order and reappear afterwards (and nobody knows who owns the bots on the other side). Plus they had a 100,000 dollars giveaway for first COIN futures traders in ADA (which was my case), and I did not receive a single dollar from that. But who knows? Maybe that liquidity just disappeared one microsecond before the promotion was closed lol.

That being said, I withdrew all of my money from that website, and had not used it since and will not use it again. Not that I think, as of today, it is still a very trustworthy website for those who only want to buy crypto, with a good fee. But as far as I'm concerned, I'm over with Binance. I think they should at least refund something.

But no problem, if this thread could be a warning for a single person who might fall in this trap, I would be happy.

[crwth]

I agree, but the latest sell order on their book was more than 0.143. It is my market order that triggered that market crash. You are right about the limit position, and I did not know that, maybe next time (if ever).

At least we are clear that it's not the exchange site's fault. In a way, the smaller the difference between the current price and the opening position price that you have, the better the market orders that will come through.

So ok, now you could argue it was my mistake, and I agree. But I can't think of this "market" button anything else than a money transfer button disguised as "market order".

This could serve as a lesson for you that you shouldn't act on it like you are gambling. Like a small change in price will immediately ”serve as profit” 

Have you seen the chart? If liquidity can disappear and reappear just because YOU are making an order, it's a more complicated way of saying somebody is stealing some money. You CAN NEVER VERIFY the liquidity of a market. All the orders you see will just disappear because you made a "market" order and reappear afterwards (and nobody knows who owns the bots on the other side). Plus they had a 100,000 dollars giveaway for first COIN futures traders in ADA (which was my case), and I did not receive a single dollar from that. But who knows? Maybe that liquidity just disappeared one microsecond before the promotion was closed lol.

Usually promotions like that require KYC, a minimum trade, possible referral, I don't know, but I don't think they will be running with your money though. Just a portion, LOL.

I'm over with Binance. I think they should at least refund something.

It is sad that you feel that, but knowing that you admit that it was your fault and still blaming the exchange because of the lack of knowledge about trading, it says otherwise.

[Tytanowy Janusz]

I think they should at least refund something.

Did you try to blame binance for network latency bug (you did not see price crash while performing trade because of delay caused by spam of trades)?

That being said, I withdrew all of my money from that website, and had not used it since and will not use it again. Not that I think, as of today, it is still a very trustworthy website for those who only want to buy crypto, with a good fee. But as far as I'm concerned, I'm over with Binance. I think they should at least refund something.

I think that there is no better alternative. Binance is the safest, cheapest place to trade.

And there is also something weird I noticed when I first made the limit long order. At the exact same time (like in 0 microseconds) I made my long order, I see appear, right behind my order, about 5 orders, of the EXACT SAME amount of my order, but each one a cent cheaper one after the other. As my order was being filled and amount diminished, those orders' volumes continued to be the exact same volume of my order. Can somebody explain this phenom?

There are hundreds of trading bots made by hundreds of traders using dozens of strategies. Anything can happen in orderbook. It could be spoofing orders, one trader algo bug, or anything else.

[PaperWallet]

Did you try to blame binance for network latency bug (you did not see price crash while performing trade because of delay caused by spam of trades)?

No in fact they said it's because of low liquidity. It's not network latency, it's BECAUSE of my trade order, the market crashed.
Anyway, I agree with you, properly speaking, it's the safest place to buy and even to trade I think. Someone should just beware of only making a limit order, and I did not know that when you have a long order fulfilled you can make a limit sell order out of it.

Nevertheless, that being said, even if it's not their fault in the strictest sense of the term, they're also responsible for the presentation they make of their platform. That "market" button sometimes means "make a transfer" or "make a donation". It is not supposed to be such an expensive lesson for anyone.

But as far as I'm concerned, lots of other exchanges are also safe with low fees. I am already very happy with 2 of them (crypto.com and Kucoin)

[beerlover]

Well, the market order thing could work very well if the liquidity is high on something. Try to do that market order on a regular btc/usdt trade, not a margin, not leverage, just plain old give usdt to get btc or give btc to get usdt regular trading, and you will realize that market order of this magnitude will not make a difference at all, it would not make any change at all, it would basically be moving veeeeery tiny that it wouldn't even be seen, hell during the same time people would make trades as well that would make your change go reverse very quickly as well.

However what you did was market order on a very liquidating problem coin with a high leverage, so there was really not that many people to eat up your order, which caused it to drop very significantly.

[Tytanowy Janusz]

But as far as I'm concerned, lots of other exchanges are also safe with low fees. I am already very happy with 2 of them (crypto.com and Kucoin)

Liquidity comes with volume. Same order made on kucoin will do 5x more damage and on crypto.com 10x pushing you into even bigger losses.

No in fact they said it's because of low liquidity. It's not network latency, it's BECAUSE of my trade order, the market crashed.

Oh. I missed that. Sorry. But ... if your order crashed market it should not look like that:



Single trade. It should be multiple transactions with lower and lower price eating big after bid.

Hmm looks like you sold on 0.14111 but price dumped to 0.136 triggering other traders stop losses. You lost but also made other loss even more. The only person that you profit from "make a donation" button is the one who  is placing bid order so low that it is filled once per weeks.

[PaperWallet]

Liquidity comes with volume. Same order made on kucoin will do 5x more damage and on crypto.com 10x pushing you into even bigger losses.

I know. It's just that it happened with Binance, I'm no longer using Binance. That's a personal choice of course, others are welcome to trade there as much as they want. That being said that was my last trade and I think will be my last trade with leverage for years to come if not ever.

Oh. I missed that. Sorry. But ... if your order crashed market it should not look like that:

In fact if you look closely it states : "Average price". so in fact some of them were higher and some of them were lower than 0.14111