Hello! The results of margin trading for the three weeks of December 2019 for several of our accounts on the #Bitmex exchange are manual trading with a balanced conservative strategy. (Investment program - "Trade to BTC") 🌐 Sincerely, TBM-TRUST team - https://tbm-trust.com #TBMTRUST #blockchain
Hello! The results of margin trading for the first half of September for one of our accounts on the #Bitmex exchange is manual trading with a balanced conservative strategy. (Investment program - "Trade to BTC") Regards, TBM-TRUST Team tbm-trust.com
I recently interviewed Jon Stead, a CPA who specializes in cryptocurrency margin trading. Figured this would be a good place to post the interview, as well as some highlights for anyone who prefers reading to listening. He offers a simplified explanation of margin trading, as well as some strategies for being successful at margin trading. Full disclosure, I work for BitcoinTaxes and the link below links to our podcast page. BitcoinTaxes Podcast Link Highlights: Margin trading can be a complex concept to those unfamiliar with it.[03:17] Jon: Margin trading is the process whereby you take a speculative position using a loan. So if you want to make a bet that Bitcoin is going to go up in value, for instance, instead of clearing out your savings account to buy Bitcoin, you would take out a loan and use the loan to buy the Bitcoin. That's the difference between ordinary trading and margin trading - you are doing it with somebody else's money. Most of the time if you want to trade on margin, you need to have an account with a broker. In the case of a cryptocurrency margin, you need only have an account with a particular exchange that supports trading on margin. There's going to be requirements for collateral. Just like in any loan, there's going to be an interest expense. When trading on margin, there are long positions and short positions.[04:52] Jon: In plain English, if you want to take out a long position on margin: let's say you think Bitcoin will go up - you borrow $1,000 from a bank and buy one Bitcoin that is trading at $1000. Then wait three months. At the end of three months, you have one Bitcoin and you owe $1,000 plus interest at the end of three months. Let's say Bitcoin is now trading at $2,000 - you sell the Bitcoin and now you have $2,000 in cash and you owe $1,000 plus interest. You payback your thousand dollars, you pay the interest, and you keep the change. Short positions are much more fun and much more dangerous. So let's imagine that you want to short Bitcoin and Bitcoin is trading at 1000 bucks today. You borrow one Bitcoin. So now you're holding one Bitcoin and you owe one Bitcoin. You sell the one Bitcoin for 1000 bucks and then hold the cash and then wait three months. At the end of three months you are holding $1,000 cash and you owe one Bitcoin, plus interest denominated in bitcoin. So let's say that Bitcoin is now trading for 500 bucks. You take your thousand dollars cash and buy, let's say 1.1 bitcoin for 550 - you pay back the one Bitcoin that you owe, pay back the 0.1 Bitcoin in interest and keep 440 US dollars. That's a short position - you've borrowed what you think will go down, sold it for USD and wait, buy it back cheaper, pay back your interest and keep the change. Understanding your margin trades becomes a lot easier if you can understand the resulting ledgers.[11:09] Jon: The one that I that I find the easiest is the Kraken ledger. So I'll use this as the example. All of the other exchanges that do margin trading are roughly similar. When you export a Kraken Ledger, it's going have every transaction that you did. Now the trades are going to come up in two pieces and the category is going to be called "trade". Let's say you bought 1 ETH for 1000 bucks - it'll say "trade", "ETH", "1". The next line down will say "trade", "USD", "-1000". Now on the margin side, there are two categories that will show up. One of them is called "rollover", and the other one is simply called "margin". Let's take roll over first. If you are trading on margin and you don't cash out your position, you're essentially letting it ride. So if you go long on Bitcoin and you win, and now you've got 0.2 Bitcoin in your exchange and you want to let it ride and bet again, you're going to be charged a rollover fee. The rollover fee is usually going to be denominated in crypto and there's just going to be a giant ledger full of them. The other thing that you'll see is just simply called "margin". The margin category is going to have a quantity value - the quantity value will either be positive or negative and it'll have a denominator. So if you look in your Kraken ledger and it says "margin", "2", "BTC", that means that you took out a margin position, you won your bet, and your winnings from that bet is 2 BTC. Obviously the reverse is true here. If it says "margin", "-2", "BTC", you lost your futures position. If you want to be successful at margin trading crypto, Jon says four factors come into play[21:50] Jon: If you're going to trade on margin, and your approach is just to throw money at it and hopefully something sticks, you're going to lose your money. But there's another approach. And the other approach is to take it like a poker player. Now a poker player needs four things in play, and all of them need to work to win. The first thing you need is a strategy. And the strategy has to actually be good. If your strategy isn't going to work, it doesn't matter. You're going to lose money. The second thing you need in order to win on margin, when you're approaching it like a poker player, is discipline. Anybody can write down a strategy and believe it, but when things start getting difficult, a lot of people second guess themselves. You have to have your strategy and it has to be the one you work all the way through your trade. When your trade doesn't work, use the feedback and reorient your strategy. Don't go reorienting your strategy mid-trade. That's like trying to reorient your golf swing in the middle of the swing - it’s not the right time for that. The third aspect that you need is patience. If you don't have any patience, you should not be trading on margin. And that's because if you don't have patience, you're going to go doubling down on your bet while it's still alive. Not a good idea, right? You need to have a long-term strategy approach, approach it with discipline, and also let the strategy work in real time and be patient about it. The last thing that you need is liquidity, which is to say you need cash to backup your gain. The example from poker would be if you're a good poker player, you have your proper strategy, you're a disciplined, cool headed poker player and you have patience, - but you also need the chips to ride out a bad poker player’s lucky streak. Any bad poker player can hit a pot once or twice - it's going to happen. If you are a good poker player and you don't have the chips to ride that out, it doesn't matter that you're right in the long-term...you're not going to be able to ride it out in the short-term. Jon utilizes his expertise with our previous guest, Alex Kugelman. If you want to reach out to Jon, the best way to do so is to get in touch with Alex.[38:14] Jon: I work for Alex Kugelman. In the case that you want to talk to me, you’ve got to call or email Alex at [email protected]. He's also on Bitcoin.Tax if I'm not mistaken. Reach out to Alex, set it up through Alex, and he'll put it together. The benefit of that is then the attorney-client privilege extends to me, through Alex. If you would like to request a topic for an interview, or have any questions related to this podcast, you are welcome to reach out to me at [email protected].
I've seen numerous posts explaining how to implement the Wheel Strategy on a given underlying but I'm having a hard time finding information on how much of one's portfolio to allocate toward the strategy. To add some constraints lets assume that the alternative would be long term buy and hold and the use of the Wheel is an attempt to gain more control and get something near %20 yearly ROI.
Beginner trying to make gains in Futures and Options with a small account. Question about long term holding.
Hi everybody. I'm a total noob to trading futures, and am trying to grow a small account of 3k with both options and futures. I've tried day trading futures with TOS paper trading platform, but am still learning to recognize breakouts, reversals, and the basic candlestick patterns, and am not doing too well. I've noticed that while the gains are more limited, it requires less time and effort to simply leave options and futures contracts to accrue money over the course of a week, a month, or longer as long as you've correctly identified the general trend. While this method may not net one as many gains as day trading, it requires a lot less screen time, and I wanted to know if this is a strategy a lot of people use to make passive income. I'm looking to trade Micro futures in the /MES and /MGC as they have been very bullish lately, with a stop loss in place far below my entry price, but still no more than 10% to 15% of my account size. I know this is far more risk than what is generally recommended, but I don't want to be prematurely stopped out on a longer term trade. I really can only afford one micro futures contract per trade while also having some left over to trade an options contract (usually on the SPY or GLD calls). I'm only looking to make 1k or more per month with this strategy at first as I save up more capital at my day job to invest and eventually trade larger or more diverse positions. Does this sound like a good strategy? Any suggestions? Does anyone here apply this sort of strategy on the regular and have good results? Please let me know what you think and thanks for reading to the end.
I was forced to flair it shitpost just in case.. but hear me out. I think I found a very cool very legal way of becoming guaranteed millionaires with no risk, while sticking it to fucking brokers and debt collections agencies. Fuck those vultures, your tax dollars bailed out most of the former group anyway Here's the plan
Find an even number of homeless people who still have social security numbers (and haven't filed for a bankruptcy yet). Better yet, drug addicts. This is the hardest step. Say you found 2.
Open brokerages in their names, fund it with small amounts. Say 5-10k each. Become their financial advisor.
Find a highly volatile derivative on a highly volatile security. Say oil futures
Go long in one set of accounts, short in another. One account goes negative, other might go to 6-7 figures.
Take profits on the winner, ignore margin calls in the other.
Also works with terminal relatives and cancer patients. Edit: I now have more awards on a shitpost from an alt than my 7 yo real account. Thank you fellow autists! In case any degenerate is taking this seriously, I have a very rare, covid repelling amulet to sell you Edit 2: Fuck I wonder if shopify will let me sell those amulets online. TAM is yuuuuge so many of you OD'ed on vaccines as a baby. For future reference a "trading strategy" that begins with homeless drug addicts is not an advice or suggestion, nor is any other post that might fit the plot of It's always sunny in Philadelphia. Upvote 💩and go back to flippin' burgers. I will not respond to DMs.
100% win unbeatable options strategy that I just thought of
Hey guys, I’m like totally new to trading and options and I don’t even know what a Robinhood is, but my best friend’s sisters bookshelf and I just came up with a can’t-go-tits-up plan. What if I sell way OTM options while at the same time buying ATM options naked on both sides. Then if the price goes up, I close the losing trades and ride the wave to tendie town! If I do this leveraged to the tits all while boofing Wendy’s chocolate frostys, guaranteed win. Tell me I’m right or if I should stick two barrels of a shotgun in my mouth and make this a red day.
Would you like to entertain yourself with a story about one of the greatest schemes in the history and, maybe, learn a few plays? This story is about three brave autistic brothers, who almost cornered the entire commodity and how one (not so brave, but shrewd) bank did it without anyone noticing. As in any good fable – there’s a moral and a strategy that you could draw from it. The year is 1971. Nixon temporarily abolishes gold standard. And every temporary government program is never reversed, as you know. Trading price of gold went sky high: from 270s to 800s in two years or so. Enter Hunt brothers, sons of H. L. Hunt, oil tycoon, one of, if not the, richest man in the world at that time. Hunt family was, what one might describe as, right-wing libertarian and anti-globalist. They believed that Keynesian economics and the US shift to the left in the 60s will lead to the debasement of the US dollar and monetary collapse. Thus, return to the gold or silver standard was the way, as they thought. Allegedly, Hunts also had a feud with Rothschild family and other financial speculators, and were resentful towards the US government for doing nothing to protect their oil assets in Libya, confiscated by Gaddafi. So they started their move against America, alpha-silver bug style. In 1973 Hunts began buying all the silver they could. And, instead of just speculating futures contracts, they actually took delivery. Initial price was $1.5/oz. Silver was shipped to Switzerland in secretive and costly operations and stored in vaults (brothers feared confiscations – remember, private citizens were still prohibited from owning gold in the US). The following events are quite vivid and include the efforts to create a cartel similar to OPEC, talks with Iran and Saudi monarchs, pump and dump publicity and large scale purchases of miners. But we will spare the details, except one: Hunts even tried to corner the soy market at the same time. Reminds you how WSB slv gang quickly switched to corn gang. But the soy scheme didn't fly and they focused on silver only. Their efforts pumped the price to almost $50/oz by early 1980. At some point Hunts controlled around 230 million oz of silver and the majority of what was traded. Hunt brothers laughing at your pump&dump effort Of course, when you are such a smart ass, you become a target. Chicago exchange officials became very concerned citizens by 1979. They started issuing numerous regulations limiting the amount of market share one can accumulate in one hands. As all American concerned citizens, they had financial incentive to do so: Hunts managed to prove that Chicago exchange board members had short positions against silver. Finally, CFTC (Commodity Futures Trading Commission) issued a ruling that basically forced Hunts to liquidate part of their portfolio by February 1980. This sent silver prices down dramatically and brothers started to get margin calls which they could not cover. And so their story ended with bankruptcies and heavy fines for the family. Shortly after, Reagan and Volcker raised interest rates and silver price never recovered to $50/oz ever since. We skip to the year 2008. Global financial crisis is in full swing. Bear Stearns is royally fucked, as due to all bears. Before the music was over, they mastered paper speculation of futures contracts like no one else. Bear Stearns accumulated world biggest naked short position on silver. What could go wrong? Stonks go up, silver goes down. Until it reversed and silver skyrocketed from $11 to $21. This became one of the margin calls to screw Bear Stearns. JP Morgan is asked by the FED and co. to buy out BS and to save the entire market. Since BS's shorts are now deeply down - JPM gets the whole bank with pennies on a dollar. But the problem is that JPM themselves have massive naked short position on silver. Combined with BS it will exceed anything permitted by the CFTC. Since Obama administration was in a rush, they push CFTC to grant JPM basically a carte blanche to accumulate any position over the limit for a period of time. Period of time comes due and turns out that JPM not only didn’t trim the shorts significantly – they even bought more shorts at some point. Even with all the fines, it went very much their way, because in 2009 silver dropped. So they pocketed hundreds of millions of dollars. But come 2011 and silver spiked again, dramatically. JPM, now bleeding cash on shorts, could close short positions, like any of us would do, right? Nope, fuckyall says JPM and starts hedging short futures positions with… physical silver. 'But wouldn’t that be even more control over the commodity?' - you might ask. See, nothing in the rules of CFTC says you can’t do that, because to help cronies speculate with paper futures contracts, made of thin air, CFTC basically started treating physical silver and futures as two different instruments (it’s, actually, even more complicated than that: google difference between physical, eligible, registered and so on). In the next 9 years JPM becomes the world biggest holder of both short contracts and physical silver. The later they 'loaned' to SLV trust, of which they are custodian. This way upkeep of physical silver, which otherwise would be a liability for hedging, becomes an asset, because we, retards, who own SLV pay the maintenance. People are often confused here, because SLV is issued by Black Rock, not JPM. Well, there is a difference between being an operator of a financial instrument and being a custodian providing backing. Now, to confuse you even more – JPM is one of the major holders of Black Rock itself with 1.6% or sth like that. By estimates of Theodore Butler, JPM acquired 900 million oz of physical silver since 2011. That’s 4 times more than what Hunts owned. Just shows you, that banks can get a pass with something that even the richest individuals can not. And you have to give it to JPM - their play was very clever. Instead of risking it all on a margin call, they make money on every turn. As of 2020, JPM still holds both shitton of physical silver and short COMEX contracts. You can call this the most epic straddle of all time. With such mass they can swing prices in any directions and profit from this on any given day. Latest example you’ve seen on the August 11th. Why am I bothering your poor gambling soul with this wall of text, you might ask? Market makers manipulate the market as they please, what’s new about that? Well, here we come to the conclusions and a strategy. How can a small retard replicate what the big boys are doing? Conclusions:
There will not be a linear up or down with silver and the swings might be dramatic. The reason being not only the sentiment of investors, but the ease of manipulation that is eligible to big players.
If we believe that speculation will throw the price of silver in all directions – it is unwise to go only long or short on silver, especially on a short term;
What shall we do? a) Only long expiration dates and calls; no weekly expiration, not even monthly. Ideally – at least half year options; b) Go long on certain silver stocks. Maybe I’ll do a write up on good silver stocks to buy; c) Sell covered calls on long positions; d) Buy 1-3 month puts on your long positions as a hedge; Now, day trade with those positions: on red days sell your puts and buy back covered calls. On green days – reload puts and sell calls. Repeat until lambo. P. S.: I gathered these facts from the open sources, since these events were of interest to me. Some facts are intentionally oversimplified, google for more details, there are good reads. And feel free to correct me if you know contradictory facts. P. P. S.: JPM, plz don’t whack me.
Backtest results for selling CSP (Cash Secured Puts) from 2007 onward: 17 underlyings with over 300 variations
Selling CSP (Cash secured puts) seems to be the default for many of us around here. Not only is this strategy popular on its own, but it's the cornerstone of the holy "wheel" strategy as well. This site performs backtests specifically on CSP strategies. They generally run it since 2007 and present a bevy of excellent data and analysis on each. https://spintwig.com/options-scorecard/ Running my own quick figures on their scorecard, Buy-and-hold produced superior net returns to CSPs 77% of the time, although CSPs provided superior risk-adjusted returns 58% of the time. These studies are VERY well done, and I'm surprised I don't see them mentioned more frequently around here. Edit: props to spintwig as this is his site.
I've never traded futures before, but I've been doing well on stocks and options for the past years...and wanted to dip my toes into futures. I got a bit of FOMO and paid for a subscription for the Small Exchange before I set anything up regarding a broker etc. Ive been using Questrade up until now and have been putting off switching due to the Margin Power feature and because I hear they have a habit of dragging their feet to transfer accounts over and leaving people in limbo. So anyway I set up an account with Interactive Brokers just now, with the intention of funding it separately so I can get started and then move over my Margin and TFSA accounts over from QT later. My question is what do I have to do in order to set myself up to trade futures on here? I got some kind of impression that I have to pass a test or something? If you could point the way I would appreceate it. Thanks
Are there any Platforms that treat SPAC shares as Marginable Securities?
I'm on an eTrade margin account, I was going to leverage some money on CCXX shares, but it turns out it's considered a "non-marginable" security. Are there any Platforms that treat SPAC shares (or even better, SPAC units) as Marginable Securities, so you can leverage your money on them with little downside?
Plain english warning about CFD trading, just something I wish someone had told me
tl;dr - trading CFD's is the equivalent of drag racing your drunk mate down the freeway into oncoming traffic. No self respecting adult would bother with them, CFD's are for cocaine-snorting thrill-seeking morons (like me apparently) who have no respect for risk management. Don't gamble with your savings. What are CFDs CFD's are 'Contracts for Difference'. Very simply, if you have a trading account with the right permissions you can trade in CFD's. Why are they dangerous Because say you trade $250, on a normal trade (ie stocks etc) if the price falls by 10% you lose $25, which sucks but isn't world ending. CFD's are NOT like that - they are 'leveraged' which just means that if you put up $50 your exposure is many many many many times larger than that EXAMPLE You buy 50 contracts on a stock that is trading at $100 a share.The stock then drops $10 in value.Your exposure is (50 * 100) = $5,000 BUT because your 'margin' is only 5% of that, the initial amount you put up is a mere $250. So to illustrate: Stock Trading Initial Investment - $250 Value drop - 10% Loss - $25 CFD Trading Initial investment - $250 Value drop - 10% Loss - $5,000 Closing remarks These things are illegal in the US for a good reason. CFD's are for suckers, don't listen to anything that you hear to the contrary. EU regulators say that 76% of CFD accounts lose money. Let me say that again, 76% of these things lose $&*#ing money. If the odds at the casino were 1:4 there is no fkn way anybody would go. When you trade CFD's you are essentially just gambling but with WAY WAY worse odds.Cited: https://www.iexpats.com/76-of-cfd-traders-lose-money-on-their-deals/ You can't make long investments with CFD's, they aren't a long-term strategy and they are not part of ANY investment strategy with a reasonable risk profile. Please don't make the mistake I did and get sucked into trading them, it's stressful as hell and it is pure bravado driven bullshit. Stay safe out there folks, times are nuts Edit 1: Formatting got stuffed up
What do you think of my lack of a trading strategy?
I've dabbled in trading for years study charts and indicators, writing complex algorithms and doing a bunch of analysis. Yet, I never found any success. Somehow I would always lose more than I've won but the following non-strategy has been consistently profitable for the last 2 years. I should also mention that I don't use this strategy to day-trade per-se - I typically hold a position for a day or two, sometimes more - sometimes alot more - but it can certainly be scaled to trade on any time chart. Here's the strategy (if you can all that): First, I only trade securities that I don't mind holding for a while. Typically, these are stocks whos companies I just like (TSLA) or technologies that I believe in (crypto). Then I only go long on a decent downturn. The idea is to be a buyer when a healthy amount of sellers are out of the market. 4% drop? I'm in! I open the initial trade with some small portion of my account (1-2%), sometimes more if I'm feeling confident or if there's a significant drop with high volatility (aka fear aka overeaction). I don't use any stop loss or anything like that. If it moves in my favor I try to ride out the profit until it finds resistance or if it just kinda moves laterally, Ill try to exit on a small profit or loss. But if it moves against me, I don't sell. If the move is relatively small (up to a few percent) I just hold and hope it rebounds. But if it moves even more against me, I buy more! At this point, I'm upside down in a position but because it's only a small portion of the account, I don't really care also because it's a company I like, I kinda just think of myself as an investor with some holdings in my long term portfolio - with that sort of horizon, it's not really important that you're down a 4-5%. So I just sit on it. If it moves up, because I purchased more and lowered my average price, Ill be profitable at a lower price than my initial position needed to be. So if it moves into a profitable zone, I kinda feel out the momentum to try and let profits run but really my initial position was a mistake so I just try to take 1-2% (or less if it's really struggling) and call it a day (trade). Now if the security moves against me a third time and/or the position REALLY tanks I buy even MORE! So now I'm in with like 10% of my account in a security that is eating it. But it's one I like so at least there's that. Again, I think of myself as an investor and hold, maybe collect some dividends at this point if I really get stuck. I still have 90% of my account to go trade something else in the meantime while this trade sits. Obviously, you can buy your way into a security that will lose 90% of its value and you'll be loading up on more and more of it on the way down. But again, your average price will trail along the more you buy at a lower price and as more and more sellers are cleared out of the market, buyers have to come along eventually and provide some support. And again I trade only stocks I like and have some intrinsic value (APPL, AMZN etc). Worst case I just end up holding shares in these companies. If I have enough shares I can trade options against then. But so far, I've managed to get in and out of positions taking very few losses. If anything, I'd say the downside is that the profits are a bit slow with this strategy. It's probably 95% wins with most wins at about 1-5% but they come only 1-2 times a week. Sometimes more frequently, sometimes less. YTD I'm up about 60% on my account which I guess isn't that much for you guys but it sure beats the S&P
Margin accounts offer convenience, sophistication, and an integrated approach to capitalize on opportunities. But investing on margin isn't for everybody. Get our tips and strategies if you're planning to start investing on margin. Margin trading has been around for decades and there's a good reason for that. Margin accounts offer flexibility to investors, who use the strategy to take advantage of market opportunities by Great – we are here to help! Margin trading is an efficient way to trade crypto. But it requires some knowledge and caution. Let’s have a look at some margin trading strategies that you can use. Margin Trading Strategies- Where to Start? Let’s take a step back. In order to start margin trading, you first need to understand some essential Margin trading allows you to borrow money to purchase marginable securities. When combined with proper risk and money management, trading on margin puts you in a better position to take advantage of market opportunities and investment strategies. Margin Trading 101. Margin trading is the borrowing of money by a trader ― from a broker ― for the purchase or sale of a security. Margin refers to the up-front capital put forth by the trader and acts as a good-faith deposit on the extended credit. Margin requirements are devices used to govern the transaction and may vary according to
An investor who wants to take a position in a stock but doesn't have enough funds can use borrowed funds to purchase the asset. This is called a leveraged position, and the investor is said to be ... Skip navigation Sign in. Search One trading jargon that you’ll hear very often is margin. It’s usually in terms like margin account, margin trading and even margin call. It seems a bit comp... What is margin trading? What is a margin? What is the difference between a cash account and a margin account? In episode #34 of Real World Finance we dive de... If the idea of margin trading sounds like a strategy that could work for you, find out how to get started. To get more trading insights go to http://www.schw...