Bitcoin Forum
December 02, 2016, 08:18:28 PM *
News: To be able to use the next phase of the beta forum software, please ensure that your email address is correct/functional.
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: Bitcoinica Leverage  (Read 1696 times)
Omni
Jr. Member
*
Offline Offline

Activity: 42


View Profile
April 01, 2012, 02:19:32 PM
 #1

I have roughly 1,000 BTC that I am not doing anything with. This was acquired in 3 days through means I will not mention on the forum (rhymes with milktoad) For the reason that this sum took such a small amount of time accrue, I don't mind "gambling" with leverage.

I was thinking of depositing my funds in Bitconica and taking a leveraged position. The leverage I will use will be 1:10.


Before I start, I have a few questions:

  • What is the difference between the different types of orders:
     > Market
     > Limit
     > Stop
     > Trailing Stop
  • Are there call/put options?
1480709908
Hero Member
*
Offline Offline

Posts: 1480709908

View Profile Personal Message (Offline)

Ignore
1480709908
Reply with quote  #2

1480709908
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1480709908
Hero Member
*
Offline Offline

Posts: 1480709908

View Profile Personal Message (Offline)

Ignore
1480709908
Reply with quote  #2

1480709908
Report to moderator
Revalin
Hero Member
*****
Offline Offline

Activity: 728


165YUuQUWhBz3d27iXKxRiazQnjEtJNG9g


View Profile
April 01, 2012, 02:38:34 PM
 #2

Market: buy/sell immediately at the current market rate.  You pay the spread.
Limit: Offer to buy/sell at a price.  When someone executes a complimentary market order that's better than your offer, your order is filled.
Stop: Execute a market order when the price crosses a setpoint.
Trailing stop: A stop order that follows the price.

http://www.investopedia.com/terms/m/marketorder.asp
http://www.investopedia.com/terms/l/limitorder.asp
http://www.investopedia.com/terms/s/stoporder.asp
http://www.investopedia.com/terms/t/trailingstop.asp

Options: http://polimedia.us/bitcoin/options.php

Don't start with 10:1 leverage.  You'll lose your entire 1 KBTC faster than you earned it.

      War is God's way of teaching Americans geography.  --Ambrose Bierce
Bitcoin is the Devil's way of teaching geeks economics.  --Revalin 165YUuQUWhBz3d27iXKxRiazQnjEtJNG9g
DeaDTerra
Donator
Legendary
*
Offline Offline

Activity: 1064



View Profile
April 01, 2012, 02:51:24 PM
 #3

If you haven't done any speculation trading in the past I recommend to start with a small amount and learn first, there are also a lot of other investments that are not as risky which you could check out Smiley
//DeaDTerra
Meni Rosenfeld
Donator
Legendary
*
Offline Offline

Activity: 1890



View Profile WWW
April 01, 2012, 02:59:03 PM
 #4

Stop: Execute a market order when the price goes over a setpoint.
Trailing stop: Execute a market order when the price goes under a setpoint.
You didn't interpret investopedia correctly.

Stop: Either sell if the price is below a point, or buy if the price is above a point.
Trailing stop: Like stop, except the price is dynamic. If the current price is $5 and you put a trailing stop sell for $4, if the price goes up to $10 your new stop point will be $9 (or $8 if you defined it as a percentage). Likewise for buys.

1EofoZNBhWQ3kxfKnvWkhtMns4AivZArhr   |   Who am I?   |   bitcoin-otc WoT
Bitcoil - Exchange bitcoins for ILS (thread)   |   Israel Bitcoin community homepage (thread)
Analysis of Bitcoin Pooled Mining Reward Systems (thread, summary)  |   PureMining - Infinite-term, deterministic mining bond
Revalin
Hero Member
*****
Offline Offline

Activity: 728


165YUuQUWhBz3d27iXKxRiazQnjEtJNG9g


View Profile
April 01, 2012, 03:09:54 PM
 #5

You are correct.  Apparently I should read the material I cite. Smiley

      War is God's way of teaching Americans geography.  --Ambrose Bierce
Bitcoin is the Devil's way of teaching geeks economics.  --Revalin 165YUuQUWhBz3d27iXKxRiazQnjEtJNG9g
Omni
Jr. Member
*
Offline Offline

Activity: 42


View Profile
April 01, 2012, 03:55:27 PM
 #6

Does this look right?
1) I convert my 1000 BTC to $4,800  and buy BTC with leverage 1:10.
2) I can technically buy $48,000 of BTC... If the price of a BTC rises from $4.80 to $5.00 and I liquidate, I will have a total of $50,000 of USD. I pay back the original $43,200 I borrowed and pocket the $2,000.
Meni Rosenfeld
Donator
Legendary
*
Offline Offline

Activity: 1890



View Profile WWW
April 01, 2012, 04:09:14 PM
 #7

Does this look right?
1) I convert my 1000 BTC to $4,800  and buy BTC with leverage 1:10.
2) I can technically buy $48,000 of BTC... If the price of a BTC rises from $4.80 to $5.00 and I liquidate, I will have a total of $50,000 of USD. I pay back the original $43,200 I borrowed and pocket the $2,000.
Sounds about right, though I'm not sure step 1 is necessary.

1EofoZNBhWQ3kxfKnvWkhtMns4AivZArhr   |   Who am I?   |   bitcoin-otc WoT
Bitcoil - Exchange bitcoins for ILS (thread)   |   Israel Bitcoin community homepage (thread)
Analysis of Bitcoin Pooled Mining Reward Systems (thread, summary)  |   PureMining - Infinite-term, deterministic mining bond
Revalin
Hero Member
*****
Offline Offline

Activity: 728


165YUuQUWhBz3d27iXKxRiazQnjEtJNG9g


View Profile
April 01, 2012, 04:10:37 PM
 #8

I don't use Bitcoinica, but you shouldn't have to convert first.

Don't forget: fees; you're paying the spread twice; and your 9k buy will move the market up and the ~9k sell will move it down cutting into your profit both times.

Also don't forget: if the market goes down $0.48 you will be forced to liquidate and lose 100%.

      War is God's way of teaching Americans geography.  --Ambrose Bierce
Bitcoin is the Devil's way of teaching geeks economics.  --Revalin 165YUuQUWhBz3d27iXKxRiazQnjEtJNG9g
Omni
Jr. Member
*
Offline Offline

Activity: 42


View Profile
April 01, 2012, 11:00:03 PM
 #9

I don't use Bitcoinica, but you shouldn't have to convert first.

Don't forget: fees; you're paying the spread twice; and your 9k buy will move the market up and the ~9k sell will move it down cutting into your profit both times.

Also don't forget: if the market goes down $0.48 you will be forced to liquidate and lose 100%.
Ah okay thanks. Has anyone taken a high leveraged position before with btc recently?
Jay_Pal
Legendary
*
Offline Offline

Activity: 1331



View Profile
April 06, 2012, 12:59:59 PM
 #10

I'm sorry to crash in this post, but I also have some doubts on trading using Bitcoinicas interface.
I'm member for months on Bitcoinica, but I still couldn't figure out how do Limit, Stop and Trailing Stop orders work.
I've been banging my head to figure it out but with no success.
Let's suppose I have 0.05BTC that I bought for $5/BTC, hopping for them to raise their price.
Instead, they dropped to $4.9/BTC.
I wanted to sell them automatically when they reached, let's say, $5.1/BTC or higher.
What type of order should I put to accomplish this on its way up?
What about the other way around, if I was selling and BTC moving the way down?
Every time I tried to place a Trailing Stop, I never understood how or why it was executed way below the values I defined.

Free Coins - 🍒🍉🌼 Free Game🌼🍉🍒
BEST FAUCET EVER!!! - Don't Panic... - 1G8zjUzeZBfJpeCbz1MLTc6zQHbLm78vKc
Revalin
Hero Member
*****
Offline Offline

Activity: 728


165YUuQUWhBz3d27iXKxRiazQnjEtJNG9g


View Profile
April 06, 2012, 09:39:08 PM
 #11

You should place a Limit at 5.1 and a Stop at 4.9.

The limit order will be filled whenever buyers bid more than 5.1.  If there are only enough bids to take part of your order, only part will sell, but it will all be at 5.1.  If you're dealing with small amounts it will generally get filled completely since the whole market can't go over 5.1 until your order is filled.  In other words, your entire order will be filled at 5.1000 before the market hits 5.1001.

A Stop order means to liquidate immediately at market price.  When the price is crashing no one will be buying at 4.9 - so it has to accept lower bids in order to finish liquidating.  Trailing Stop works the same, except it automatically raises the liquidation price as the market rises.  IE, the Stop price will be higher, but the immediate liquidation in a down market will still require selling under the Stop price.

      War is God's way of teaching Americans geography.  --Ambrose Bierce
Bitcoin is the Devil's way of teaching geeks economics.  --Revalin 165YUuQUWhBz3d27iXKxRiazQnjEtJNG9g
RaggedMonk
Sr. Member
****
Offline Offline

Activity: 308



View Profile
April 07, 2012, 12:00:38 AM
 #12

I was thinking of depositing my funds in Bitconica and taking a leveraged position. The leverage I will use will be 1:10.

What are you high?

I have roughly 1,000 BTC that I am not doing anything with. This was acquired in 3 days through means I will not mention on the forum (rhymes with milktoad).

Oh, probably...
Jay_Pal
Legendary
*
Offline Offline

Activity: 1331



View Profile
April 07, 2012, 02:28:58 AM
 #13

You should place a Limit at 5.1 and a Stop at 4.9.

The limit order will be filled whenever buyers bid more than 5.1.  If there are only enough bids to take part of your order, only part will sell, but it will all be at 5.1.  If you're dealing with small amounts it will generally get filled completely since the whole market can't go over 5.1 until your order is filled.  In other words, your entire order will be filled at 5.1000 before the market hits 5.1001.

A Stop order means to liquidate immediately at market price.  When the price is crashing no one will be buying at 4.9 - so it has to accept lower bids in order to finish liquidating.  Trailing Stop works the same, except it automatically raises the liquidation price as the market rises.  IE, the Stop price will be higher, but the immediate liquidation in a down market will still require selling under the Stop price.

Oh... I was placing trailing stops on the rising quite above the price... Dumb...
Thank you very much for making me understand my error!

Free Coins - 🍒🍉🌼 Free Game🌼🍉🍒
BEST FAUCET EVER!!! - Don't Panic... - 1G8zjUzeZBfJpeCbz1MLTc6zQHbLm78vKc
R-
Full Member
***
Offline Offline

Activity: 238

Pasta


View Profile WWW
April 10, 2012, 12:25:52 PM
 #14

I was thinking of depositing my funds in Bitconica and taking a leveraged position. The leverage I will use will be 1:10.

What are you high?

I have roughly 1,000 BTC that I am not doing anything with. This was acquired in 3 days through means I will not mention on the forum (rhymes with milktoad).

Oh, probably...


Probably is. ~rep.
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!