Why Do You Need a Margin Account to Short Sell Stocks?

The Reddit Challenge, Virtual Stock Exchange game

The Reddit Challenge, Virtual Stock Exchange game (Round 3) The Reddit Challenge. Virtual Stock Exchange game, can you out-trade other Redditors?

review, crypto gazer, facebook.

ETHlend could become a spotlight crypto this year. Here's why... it's complex... very worth understanding.
ETHlend is building a trade-loan platform. This is for traders, all of us.
They are seeking to do a better version of what the stock market currently does: 1. In the stock market, exchanges allow buying both long and short positions. This means you can stage trades, and make gains whether the stock is going up or down. In crypto, exchanges don't let you short trade. ETHlend will allow this maybe by end of year.
  1. Good stock market exchagnes also allow trade margin - which means you can fund money, and then trade on much more money. (usually 2x to 4x for starters, up to 10x for big dogs) This can be perceived as good and bad for many reasons:
  2. bad for credit risk.
  3. bad because over-leveraged trades mean that you can use, say $1,000 to make a $4,000 trade, sounds cool if you win, but if that trade moves against you even 25%, then your entire thousand disappears, because $1,000 is 25% of that 10K trade.
  4. You have to pay margin interest percentage, which stacks up really high, and costs in your trade, preventing people from using short selling as much as long positions.
Even if ETHlend just allowed these functions, it would constitute a complete second half to the crypto trading market. (by end of this year ETHlend seeks to allow short selling). Margin trading will lead to double transactions which means the market-cap will appear to multiply even with the same number of traders.
In the stock market, your money is always parked in dollars, which don't budge in value. So when you step into margin (loan) or use cash to perform short-sells (gain on downward price), You only get the stagnant dollar hold, or the trade you're in, both getting eaten by margin interest.
With ETHlend -- you get to use your current crypto position as collateral. (not dollars) This is HUGE. This means, you can have some OMG already, then move it to LND platform... You don't have to sell your OMG which might move upward in price. You can then get a loan on that OMG in the form of ether, and pay a low interest rate a rate that YOU set... Stephen Walsh mentioned using 4% a month interest rate. Very low! So, you then get an ETH loan, which you can pull out and use to BUY MORE CRYPTO.
This means your $1,000 of OMG can magically turn into ... say... both $1,000 OMG and $1,000 NULS. (beware of credit risks ;) )
As NULS goes up 75% and you sell it. Then convert to ETH and bring it back to ETHlend you can simply pay the small % of margin off from your OMG (substantially lower fee than the stock market) then pull our your $970 of OMG out, which may have gone up 20% in value, and sell that too.
So, this is the concept of margin trading ON STEROIDS, because both your initial investment and secondary trade can gain value.
Remember, in the stock market, you have either stagnant dollars or whatever stock you buy, at a high interest rate.
This gets better when you add short-selling. Short selling may have a change effect on the crypto market, which I don't like, but it's coming and we have to prepare for that. I won't discuss that aspect more here, but I wanted to mention it.
This can scratch one of the bigger itches of being a crypto trader ... you want long term holds, but they just sit there. When they go up in value, you feel split to sell them to make other trades.
While it might be better to remain conservative and not put all your long-term holds on ETHlend ( to divert risk percentage in case of incident) it might prove to be too lucrative to not have some of your portfolio in a loan cycle, for certain types of trade activity - namely, short-medium term trades which are my favorite to do, because you can ride the ridge of highest gains with the extra effort.
Anyways that's it. This whole platform was brought to my attention by Stephen Walsh, who told me how he banked on my NULS trade call using ETHlend while holding his Clearpoll as collateral which made him an EVEN GREATER PERCENTAGE.
He got a 2 for one deal. Thanks Stephen for getting me to pay attention.
I hope this description wasn't too gangly - just wanted to help you guys see this transition into the margin/short selling portion of the market that's coming like a freight train.
What's better, the ICO I just mentioned on my FB page called "SwissBorg" has formed a partnership with ETHlend, which is great for both of them - and also shows that both of them are serious.
As for Swissborg ICO -- I just called it on my FB where you can get a 5% bonus link on my January 2nd post a few posts down my page. I make calls on FB so feel free to friend.
submitted by ludwigvanbeethoven68 to ETHLend [link] [comments]

InziderX Exchange Characteristics!

InziderX Exchange Characteristics!

“The ideal exchange is a decentralized one where the transactions are done wallet to wallet (Dapp). Thus, there are no significant accumulations of funds in a single wallet that could tempt a hacker. This type of exchange is therefore secure by design.
The reason is simple : hacker is a “game” of trial and error that takes a lot of time. Therefore, it is normally useless for a hacker to waste time and risk accusation to perform a task that pays little.
This feature has several advantages.

Basic Features
No registration & verification
It is not necessary to register for the exchange and wait for endless checks of his identity. The portfolio, which is itself the decentralized exchange, is accessible to all by a simple download.

No restriction or limit
There are no restrictions or minimum deposits to open a wallet of digital assets and the same is true for the use of a wallet-based decentralized trading platform.
There is no need to make a deposit to trade or withdraw the funds from the exchange to secure them. The balance of the wallet is always accessible and safe. There is no daily withdrawal limit like several decentralized exchanges.

Not regularized
This type of exchange is less sensitive to regulations governments changes and moods. By its very structure, being based on the wallets that communicate with each other by a decentralized blockchain, there is no fixe server that can be closed or controlled by an external entity.

Since it is not necessary to provide personal information when opening a wallet, the information about user’s transactions that are made on the blockchain are completely anonymous.

Obviously, since the exchange offers the negotiation of digitals assets with the largest capitalizations, the portfolio is multi-currency and user-friendly.

Advanced features
The concept of the InziderX exchange have a focus for active and algorithmic negotiation.

Exchange between assets
It allows the exchange without margin, the exchange between the funds already in the account. Example BTC for another digital asset, let say LTC. The conversion of the first BTC value is converted in LTC.

Trading with margin
Margin trading is the option usually used by actives and algorithms traders or with because it allows taking positions without selling the assets holds in the accounts. This feature is essential in order to allocate trading power to multiple positions at the same time.

Short Selling
Margin trading also allows shorting selling of digital assets. For example, a trader can borrow 1 BTC from another user in order to sell it to another trader and take advantage of the decline in the price of that asset. When the short sale position is closed, the 1 BTC is returned including financing fees.

Margin funding
These features are available through margin funding. The margin can be financed from its own funds or provided by other users of the InziderX exchange.
These users can use the dormant balance in their portfolio to provide margin funding to other traders who use leverage. An advantageous option for those who do not want to negotiate but wants to put their stack at work.

Type of orders
The novice trader is certainly not aware, but for the active trader, it is sometimes frustrating not to have access to the types of orders traditionally offered on the FX trading platforms.

Types of orders available
  • Market
  • Limit
  • Stop
  • Limit-stop
  • Complex market order including stop and limit
  • Complex limit order including stop and limit
  • Trail-Stop
  • OCO — one cancel the other
  • Order in scale : divided into several levels and sizes
Complex orders
The major difference here is that the digital asset trading platforms currently available do not offer complex orders; an order to which other orders are associated and executed in sequence.
It is difficult to manage pending positions without having a specific level of maximum loss and take profit. This type of order is a basic option offered on all the foreign exchange (FX) trading platforms. It’s difficult to understand why digital asset exchanges have not replicated this model, if not to disadvantage the users.
Without this type of complex order, it’s necessary to wait for the execution of the limit order before being able to place the orders of maximum loss and take profit.
Otherwise the take profit order (TP) could be triggered even before the execution of a limit entry order is triggered. This would have the effect of initiating a short sale position where the user actually wanted to take profits. An annoying situation.
The lack of a complex order causes unnecessary complications and stresses to the negotiators, regardless of their level of expertise.

Aggregated Orders or not (FX)
Another popular digital asset trading practice is to create an average price when multiple positions are taken on the same assets.
Example: purchase of 0.5 BTC at $ 10,000 and purchase of 0.5 BTC at $ 15,000 = average price of 1 BTC at $ 12,500.
The novice user certainly does not distinguish between an order accumulated or not, but for the experienced negotiator, who is often used to the exchange market, this practice is annoying.
These traders are used to take multiple positions at different prices and setting the appropriate gain and loss levels for each position.
Having to evaluate at any time by a mental calculation or by hand if a position is positive or negative according to its transaction history is a useless exercise and once again inconvenient.
Decision time is a critical factor for any active negotiator and this complication doesn’t help.
The InziderX trading platform will include this option : aggregated orders or not (FX) to serve its users in the rules of the art.

The non-aggregated order option combined with the margin financing option allows for Hedging –taking opposite positions on the same digital asset. So it’s possible to initiate a buying position at a level and then initiate a new sales position to another level on the same asset.
The aggregated order type does not allow this option because the second short position would have the effect of canceling the buyers position.
Without going into the details of possible strategies with this option, the InziderX platform will allow hedging to favor the most complex trading strategies.

Analysis Chart
Our team wants to offer the most fluid and user-friendly trading experience possible, which is why we chose to integrate Tradingview.com analytics charts into our decentralized trading.
Tradingview is a platform for viewing quotations of digital assets that offers excellent graphics quality and an impressive number of tools to facilitate analysis and position taking.
It does not matter if the user simply wants to take a quick look at the chart or make a more complex analysis including several indicators; all tools are available for this purpose.
The Tradingview graph platform is therefore user-friendly for both novice and experienced traders.

Raw Benefits
  • Several types of graphics are available: Bar, Candles, Renko, Kagi, Line Break, PnF
  • It is possible to deploy multiple graphics on one screen
  • Varied choice of graph time from month to minute
  • Quality history

Tracing tools
This chart platform contains more than 50 tracing tools from the simplest to the most advanced analysis such as : trend line, alan andrew pitchfork, fibonnacci ratio, harmonic figures, Elliott waves, R calculator, personal annotations directly on the chart, etc).
For an active trader who uses technicals analysis to refine his decisions, those tools are invaluable.

Indicators and oscillators
TradingView include over a hundred indicators and oscillators in its platform. These cover the most popular concepts and indicators to the most experienced and can be calibrated to the taste of the user to personalize his analysis. He can even save his configuration in order to apply his model to several assets.

One of the most useful features is the alerts that can be received via email, SMS or just visual and sound. These alerts are triggered according to the criteria chosen in advance by the user and can be based on a price level but also on a level of indicator. Example RSI 14 on the daily chart of BTC / USD is under level 20: alert ! This would theoretically be a good buy level.

Other options
This analysis platform also includes basic options such as a rating table where you can save your favorites and make a list and a section delivering the latest market news and an economic calendar.

Execution table
The execution table includes all the elements necessary for analysis in one look. It includes:
  • A clear and detailed graph
  • A list of quotations with choice of favorites
  • A table to enter orders
  • A list of assets in the portfolio
  • The leverage and the amount available depending on the balance.
  • A list of margin positions and the cost of financing
  • A list of pending orders.
  • The latest transactions processed in real time
  • The Order Book — Level 2
The chart allows you to see open positions, pending and alerts. It is possible to change the price or level of an alert simply by moving a marker on the graph.

Negotiation with Algorithms — API
During the last 10 years, we have witnessed a revolution in the world of trading by the appearance of algorithms that can execute strategies without human intervention.
To the point where, at its best in 2010, algorithmic trading accounted for 60–70% of trading volume in the US equity market. This trend is not likely to fade and it is hard to gauge the percentage of algorithm use in the over-the-counter (OTC) markets such as the foreign exchange and digital asset markets.
This is why the InziderX exchange will focus on this type of negotiation by providing all the necessary tools for the smooth execution of these scripts.
An API with clear and detailed controls allowing all the types of actions necessary to take a position and modify the orders will be developed by our team.
Limited access will be established by an encryption of the keys necessary to access the API.

These will be able to select the information that can be access and possible actions such as:
  • Balance account
  • Historical
  • Order pending
  • Position statement — exchange, margin and / or financing
  • Possibility of withdrawal

Earlier compatible version
The success of a trading platform has often been the responsibility of the community that supports it. The Metatrader4 platform is a good example where few of its users have migrated to the new version — Metatrader5.
The reason is simple : thousands of indicators and algorithms were created for this platform and when the new version was released, all those lines of code were no longer applicable ..! An uncomfortable situation for a trader who has been using the same tools for a long time.
The InziderX exchange will focus so that its API advances are always compatible with the previous version. And if, in a case of impossibility, will provide clear instructions on how to modify the code to make it compatible. Our commitment is reassuring for those who use algorithms to execute their negotiation.
Our focus on developing this quality tool and keeping it up to date is a guarantee of confidence for these traders.

Negotiable Assets
The InziderX exchange does not seek to be a ICO launching platform. The focus is on the active and fluid algorithmic trading of digital asset with the largest capitalizations.
Several reasons are involved. An active trader is usually not interested in keeping a long-term position. The dramatic variations in new issues of digital assets, particularly the ECR20 token, are therefore not desirable and appropriate.
The BTC / USD pair has an average volatility of 10% per day. In fact, the average volatility of the ten digital assets with the largest capitalization is 5 to 10%. These variations are ample for anyone who wants to buy or sell at discounted prices and get out at extended movement.
In addition, if volume is an important consideration for smooth execution, a tight spread and almost no slippage, it makes no sense to enter non-liquid assets.
This is why our exchange is committed to keep more or less the twenty (20) digital assets with the largest capitalization.

List of planned assets

The USDT asset will allow other assets to be traded in pairs at a price that is known to traders, as it is sometimes difficult to evaluate the value of a pair such as XMR / BCH or DHS / INX.
A visual conversion of the value of all assets will be available in USD and other fiats through an option and will allow the rapid valuation of asset values.

INX assets is the tool with which the InziderX exchange intends to finance its projects and offer a discount to users that cover their transaction fees with INX.

Token ERC20
Some ERC20 Tokens will be included in our list and will be evaluated according to their capitalization such as other altcoins. The EOS token is a good candidate.”
#ico #exchange #bitcoin #cryptocurrency #inziderx https://inziderx.io
submitted by InziderX to u/InziderX [link] [comments]

Cdn Goverment goes from "Crypto isn'a security" to no short selling or margin trading !


So funny that the Canadian government didn't recognize crypto as a legit currency and now you can't short sell or margin trade it. Also so funny that QuadrigaCX was registered with FINTRAC and yet had no accounting records and didn't even file taxes with CRA.
submitted by VicariousSleuth to QuadrigaCX [link] [comments]

China improves margin trading, short selling rules

China improves margin trading, short selling rules submitted by dreammanalishi to ConservativeNewsWeb [link] [comments]

China improves margin trading, short selling rules

submitted by peterboykin to TheRightPill [link] [comments]

China improves margin trading, short selling rules

China improves margin trading, short selling rules submitted by thefeedbot to OneAmericaNews [link] [comments]

OANN: China improves margin trading, short selling rules

OANN: China improves margin trading, short selling rules submitted by thefeedbot to TheNewsFeed [link] [comments]

#Learningmondays Different Style of Crypto Trading 3) Scalping Scalping is also termed as Jobbing. Scalpers normally do high volume trades with minimum margin of profit. Scalpers buy and sell depending upon the market movement for a very short time span.

#Learningmondays Different Style of Crypto Trading 3) Scalping Scalping is also termed as Jobbing. Scalpers normally do high volume trades with minimum margin of profit. Scalpers buy and sell depending upon the market movement for a very short time span. submitted by digitalticks to u/digitalticks [link] [comments]

Binance margin trading and short sell feature

Hi All,
With binance 2.0 coming and the margin trading account feature made available, does anyone know whether short trades will be available?

submitted by sophoah to BinanceExchange [link] [comments]

Margin Trading on Poloniex. Buying on Margin and Short Selling a lesser amount on Margin [at the same time]

If I buy 30,000 bitshares on margin and decide to short 10,000 BTS on margin, will my position close out automatically if my short sale limit hits? Or will it open two margin positions under my bitshares margin account?
submitted by topher_lim to u/topher_lim [link] [comments]

Is short-selling and Margin Trading possible with bitcoin?

Hi guys, Im trying to figure out if shorting and margin trading can work with bitcoin, if so any good exchanges out there?
submitted by MrJC666 to Bitcoin [link] [comments]

Altcoins / Alternative Cryptocurrencies • [ANN] Lendroid Protocol:Decentralized Lending, Margin trading and Short Selling

submitted by btcforumbot to BtcForum [link] [comments]

If I want to short sell a stock on webull, do I just click trade > sell/limit/qty > preview order ? I have a margin account. Just started using webull after using RH for quite some time so still trying to figure this out. Thanks

submitted by jimbobjuicy to Webull [link] [comments]

Is short-selling and Margin Trading possible with bitcoin? /r/Bitcoin

Is short-selling and Margin Trading possible with bitcoin? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

China Clamps Down On Margin Trading And Short-Selling To Stabilize Market

China Clamps Down On Margin Trading And Short-Selling To Stabilize Market submitted by rotoreuters to betternews [link] [comments]

Bitcoin margin trading, short selling startup gets funding

Bitcoin margin trading, short selling startup gets funding submitted by nikropht to Bitcoin [link] [comments]

Hillary netted a "10,000 per cent return on her initial investment" in 10 months, trading futures for the first time, often short-selling without margin, while Bill was governor... How?

submitted by maqr to reddit.com [link] [comments]

A Poor Man's Guide to Covered Calls (aka PMCC's) and How to Trade Low IV

A Poor Man's Guide to Covered Calls (aka PMCC's) and How to Trade Low IV
As the VIX continues it's steady decline, we're seeing less and less premiums to collect in the market. Unless we see another significant move in the market, we may be entering a period of low volatility. Many wheelers know we want IV to be as high as possible, because more IV means more premium. So what do we do when the premiums are all dried up? Poor Man's Covered Calls
What is a Poor Man's Covered Call (PMCC)? It's like a traditional covered call, but covered by LEAPS instead of long stock. For example, instead of 100x EEM/-1 9/18 46c, you'd replace the long stock with something like a 3/19/21 38c. The ITM long call replicates long stock extremely well, but for a fraction of the cost:
Covered Call
The P/L curves look nearly identical, but you only need about 15% of the capital to place the PMCC. So while the raw Theta number is higher for the covered call, the Theta ratio is 4x higher for the PMCC. But what do PMCC's have to do with low IV? What the screenshots don't tell us is Vega. The covered call has a Vega of about -0.04, but the PMCC has a positive 0.05 Vega. That means we want IV to go up instead of down. Positive Vega trades are rare for Thetagang strategies, because they typically come with negative Theta. PMCC's are one of the few exceptions that has both positive Vega and Theta. Not only that, but they can be one of the most powerful Theta generators in our portfolio

So how do we set these guys up? There are two common strategies I've come across, and they both have different advantages so I'll cover each of them
The tasty method - the tasty method only has two rules:
  1. Pay no more than 75% of the width of the strikes to place the trade. This ensures that we'll profit if our short leg is assigned, eliminating the threat of an early up move
  2. Sell an option with more extrinsic than the one we buy. This ensures the break-even of the trade will be below the current stock price, giving us a small directional buffer, but usually requires you to buy a pretty deep ITM option, which will be expensive
Weaknesses of the tasty method:
  1. Less Theta generation
  2. More capital intensive
The Super Theta method
  1. Buy ITM LEAPS within your desired allocation, 200+ DTE, farther ITM the better (but just get whatever you can afford)
  2. Sell OTM calls in the nearest expiration cycle (yes, even weeklies), usually 20-35ish Delta
Weaknesses of Super Theta:
  1. Getting assigned too early will result in a loss
  2. Break-even will typically be below current stock price

What about management?
-Management most commonly consists of rolling your short strike along to the next expiration. These guys can be slow movers sometimes
-Winners are typically closed when the underlying makes a significant up-move towards your short strike, or when your short gets exercised
-Losers can be managed by rolling the call down in strike to bring in more credit and reduce max loss

As we potentially face periods of low volatility, I encourage wheelers to check out this strategy as an alternative to the wheel, at least for low IV underlyings. Obviously I'm not saying you should switch completely. But they can be a great way to strategically diversify, hedge greeks, and get long in underlyings we wouldn't normally be able to afford. Another benefit to the PMCC is that it can easily be reversed (Poor Man's Covered Put) to give us a negative Delta trade, which might act as a good directional hedge for those of you looking to manage long Deltas
submitted by VegaStoleYourTendies to thetagang [link] [comments]

I’ve made about $3k day trading HTZ the last month. Buy at 1.40, sell at 1.55-1.60. Rinse repeat. Any other stocks to look at with similar price points?

Any other low cost stocks you’re doing this with? I’m usually in the trade a few days and buy 5000 shares.
Would like any tips on other stocks someone might be doing something like this with. HTZ isn’t getting down to 1.40 often anymore so might up it to buy at 1.50 and sell for basically anything above 1.55.
I have a larger account so day trades are OK, but also willing to swing for a few days.
Thanks for any advice.
submitted by OkieTaco to Daytrading [link] [comments]

As the market tumbles investors flee to traditional safe havens like Hertz. Stock is up 70%

Seriously though - Apparently this was caused by a Jeffries analyst suggesting that a used car dealer like CarMax or AutoNation might be interested in buying some of Hertz's used vehicles -- not the bankrupt company.
Anyone hear differently why this stock is mooning?
submitted by yarnhoj to wallstreetbets [link] [comments]

$5k in PRPL gains thanks to a short straddle 🐌🐌🐌

Initially I sold 50x $25p last week, and watched those bounce from -35% to +35%, and decided to leg into a straddle this week, selling $25c.
It looks like I did alright in the end.
I entered around $4.20 in credit (no joke), exited at $3.25 this morning, and had a bit of fomo when I saw that trade hitting a cost of $2.60 very briefly when prpl was around $23.
“I’m playing both sides so I always come out on top” 🐌🐌🐌
Ps: get fucked, auto mod. “Your post is too short” bullshit means I’m going to type more to trick you, you stupid computer.
submitted by i-only-buy-leaps to wallstreetbets [link] [comments]

A good day to be ThetaGang (short 1.9k contracts)

A good day to be ThetaGang (short 1.9k contracts) submitted by LordInvestorston to thetagang [link] [comments]

Fin 327: long purchasing, short selling and margin trading, which one is the best? How to Margin Trade (Long or Short) on Kraken Exchange! Short Selling on Margin Binance SHORT TRADE Tutorial  Binance Margin Trading FULL ... Margin__ LONG PURCHASING,SHORT SELLING AND MARGIN TRADING WHICH IS THE BEST

Margin trading is a strategy that allows you to manage larger positions than your finances can allow. Use it with caution, as it also carries many risks! Offices Profits (last week): US$ 667,128.24 • US$ 354,467.3• US$ 339,312.25 • US$ 301,317.04 • US$ 235,851.89 – Start your Trading Office with just $500 Minimum margin is the initial amount required to be deposited in a margin account before trading on margin or selling short. more. Margin Account Definition and Example. Sarah decides to short 1,000 shares of the stock at its current price. To start, Sarah's got to take a couple more steps than just visiting her online trading platform and selecting short sell. With short selling, investors require a non-registered margin account rather than a typical investment cash account. Short selling is an advanced trading strategy involving potentially unlimited risks, and must be done in a margin account. Margin trading increases your level of market risk. For more information please refer to your account agreement and the Margin Risk Disclosure Statement. Short selling and margin trading entail greater risk, including, but not limited to, risk of unlimited losses and incurrence of margin interest debt, and are not suitable for all investors. Please assess your financial circumstances and risk tolerance before short selling or trading on margin.

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Fin 327: long purchasing, short selling and margin trading, which one is the best?

If you'd like to support the channel, you can do so at Patreon.com/ThePlainBagel :) Short selling lets investors bet against a stock, profiting when it falls... ⚡️ Welcome Welcome Group "Margin Trading" Gather a Closed group, and while out instructions and deals ===== Ký Advertising sign: BingBon: https://bit.ly/bingbon0 (Transactional copy floor ... 📌TIMESTAMPS! 1:33 Margin Level Recap 4:00 Short Sell Trade 9:04 Close/Settle Short Position 15:45 Execute your margin trade the "automatic" way 17:35 Positio... Example of how short selling on margin works. Example of how short selling on margin works. Skip navigation Sign in. Search. ... 9 Tips for Trading on Margin 👊 - Duration: 10:18. How to Margin Trade (Long or Short) on Kraken Exchange! Credible Crypto. ... How Short Selling Works - Duration: ... TOP 5 Day Trading Beginner Mistakes to AVOID - Duration: ...