Hello everyone,
This obviously isnt better than simply buying/selling at the right times but it gets you out of a bad situation / mistake.
Let me know what you guys think, tell me if im an idiot.
Regards,
IlikeEzmoney
This obviously isnt better than simply buying/selling at the right times but it gets you out of a bad situation / mistake.
Let me know what you guys think, tell me if im an idiot.
Regards,
IlikeEzmoney
Trading bitcoin on a margin is a risky business. Do you get an automatic margin call when your account reaches a certain threshold? +/- 2500 USD move in bitcoin price can happen pretty fast. Opening an order in opposite direction is ok to hedge but it depends how it is set up. Are you sure it can be filled? What if the price drops a lot more, beyond your open hedging orders?
I get a message if it drops, but I am watching it constantly all day.
If I drop below the margin I have a bit of time to add funds before it closes, I plan to put sell orders in before I let this happen though. The only real 2 risks I see is, I hold the buy/sell so long that premium lowers my equity below margin *unlikely its 50 cents a day per buy order* or yea if I fail to put a sell order before the price lowers my available funds below the price of 2 sell orders.
I think I am kind of safe though, I can survive until 6.8k and then I can add funds if I really have to but I would rather not. I do not think it will go to 7k in a instant, my prediction is it will go to like 12k or 13k, I bought at 12.8, I would probably get greedy and hold at 12 but If I see it at 13k or 14k I'm probably gonna sit this one out till I see some good trends.
My mistake was putting 2 orders instead of 1, if i put 1 I could survive a drop all the way to 0 without adding sell orders and then I wouldnt lose anything implying itll raise eventually.