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Board Project Development
Re: [BETA]Bitfinex.com first Bitcoin P2P lending platform for leverage trading
by
temporalcausality
on 26/04/2013, 13:59:39 UTC

For example, let's say you want to open a long position for 100 bitcoins. That means you want to buy 100 bitcoins hoping to the price will go up. The system will borrow for you 100 * the bitcoin price US dollars (let's say 1300 USD) from lenders, at the best rates available.

You are going to leverage bitcoins by a factor of 100?   That is just plain impractical considering how much the market can move in a day.  Even with forex, leveraging by 50 is risky and that only moves by a few percent a day at most.   Bitcoins can change value by 50-100% in a few minutes, resulting in gains or losses of up to 10000%?

Who is providing the leveraged funds?   What happens if you can't hit a stop loss because the exchanges have a trading lag?