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Showing 6 of 6 results by Dyneema
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Topic
Board Speculation
Re: Can my FTX short position make a recovery?
by
Dyneema
on 13/11/2022, 22:04:53 UTC
I bought some "3x short Bitcoin tokens" 7/25/2021 on FTX when the Bitcoin rate was BTC1/$34175 for 329USDT. 1 btc have been around $40000 for a long time now, and currently it's even down to ≈1BTC/22000 but my 3x short Bitcoin position is still currently only worth around 111USDT. I understand it's about time and value of an underlying asset. I also learned about "volatility decay" then there is a fee on this leverage. Furthermore, I don't think btc will fall much under $20000. But how long will it take for my short position to
recover in this bear market, will it ever?

Leveraged tokens are absolutely terrible in the long-term. This is the cost you pay for the "no-liquidation" perk.
Go read up more about them, but they re-balance every day, meaning when the market is not volatile, you lose money, when the market is going up, you lose money.
Honestly, unless you expect bitcoin to repeatedly go down in a manner that each day is a red candle increasing the value of your leveraged token, there's no way you're going to make money.
To put it into perspective, go look up the BTCBULL token price from January 2021 (~30-40k) to Nov 2021 (2nd ATH), and you'll see it also has lost value.
Next time read up on leveraged tokens and how they work.




Yes I assume that's right, it validates what I just read on blogs etc. It's not really how FTX was marketing these tokens, though. Maybe if I had got into the fine print on their site. But on the other hand, I would have lost everything if they worked in the way I interpreted them to work. But very well just found it interesting to trade for a while, not the end of the world. Then yes that seems reasonable that the bulls from Jan 2021 was still in a loss Nov 2021 because the levels around the ATH was just brief.




It was all a scam anyway!
Post
Topic
Board Currency exchange
Re: Can my FTX short position make a recovery?
by
Dyneema
on 17/06/2022, 08:42:40 UTC
I bought some "3x short Bitcoin tokens" 7/25/2021 on FTX when the Bitcoin rate was BTC1/$34175 for 329USDT. 1 btc have been around $40000 for a long time now, and currently it's even down to ≈1BTC/22000 but my 3x short Bitcoin position is still currently only worth around 111USDT. I understand it's about time and value of an underlying asset. I also learned about "volatility decay" then there is a fee on this leverage. Furthermore, I don't think btc will fall much under $20000. But how long will it take for my short position to
recover in this bear market, will it ever?

Leveraged tokens are absolutely terrible in the long-term. This is the cost you pay for the "no-liquidation" perk.
Go read up more about them, but they re-balance every day, meaning when the market is not volatile, you lose money, when the market is going up, you lose money.
Honestly, unless you expect bitcoin to repeatedly go down in a manner that each day is a red candle increasing the value of your leveraged token, there's no way you're going to make money.
To put it into perspective, go look up the BTCBULL token price from January 2021 (~30-40k) to Nov 2021 (2nd ATH), and you'll see it also has lost value.
Next time read up on leveraged tokens and how they work.


[/quote]
Leveraged tokens are absolutely terrible in the long-term. This is the cost you pay for the "no-liquidation" perk.
Go read up more about them, but they re-balance every day, meaning when the market is not volatile, you lose money, when the market is going up, you lose money.
Honestly, unless you expect bitcoin to repeatedly go down in a manner that each day is a red candle increasing the value of your leveraged token, there's no way you're going to make money.
To put it into perspective, go look up the BTCBULL token price from January 2021 (~30-40k) to Nov 2021 (2nd ATH), and you'll see it also has lost value.
Next time read up on leveraged tokens and how they work.
[/quote]

Yes I assume that's right, it's validate what I just read on blogs etc. It's not really how FTX was marketing these tokens, though. Maybe if I had got into the fine print on their site. But on the other hand, I would have lost everything if they worked in the way I interpreted them to work. But very well just found it interesting to trade for a while, not the end of the world. Then yes that seems reasonable that the bulls from Jan 2021 was still in a loss Nov 2021 because the levels around the ATH was just brief.


Post
Topic
Board Currency exchange
Re: Can my FTX short position make a recovery?
by
Dyneema
on 16/06/2022, 19:23:49 UTC


Leveraged tokens are absolutely terrible in the long-term. This is the cost you pay for the "no-liquidation" perk.
Go read up more about them, but they re-balance every day, meaning when the market is not volatile, you lose money, when the market is going up, you lose money.
Honestly, unless you expect bitcoin to repeatedly go down in a manner that each day is a red candle increasing the value of your leveraged token, there's no way you're going to make money.
To put it into perspective, go look up the BTCBULL token price from January 2021 (~30-40k) to Nov 2021 (2nd ATH), and you'll see it also has lost value.
Next time read up on leveraged tokens and how they work.
[/quote]

Yes I assume that's right, it's validate what I just read on blogs etc. It's not really how FTX was marketing these tokens, though. Maybe if I had got into the fine print on their site. But on the other hand, I would have lost everything if they worked in the way I interpreted them to work. But very well just found it interesting to trade for a while, not the end of the world. Then yes that seems reasonable that the bulls from Jan 2021 was still in a loss Nov 2021 because the levels around the ATH was just brief.
Post
Topic
Board Currency exchange
Re: Can my FTX short position make a recovery?
by
Dyneema
on 16/06/2022, 17:21:43 UTC


Wrong place to post this but I'll answer you question. Yes, your position will recover, there's no risk of liquidations with these tokens so that's good. I don't know how long it will take and to be completely honest with you, nobody does. They have a daily management fee so do some math on that and see how much it costs you a day to keep that token.
[/quote]

Alright, thanks, where do think I should post it? Yes I understand, it's complicated to calculate when it will recover because volatility, was thinking of a scenario where this ≈ price levels remains, but hard to tell anyway.

Didn't know about volatility decay, and these derivatives are best suited for short term trading. I was day-trading last year then the price started to soar, but  I suspected a "crypto winter", so I just let my position be. Huge mistake!
Post
Topic
Board Currency exchange
Topic OP
Can my FTX short position make a recovery?
by
Dyneema
on 16/06/2022, 14:17:17 UTC
I bought some "3x short Bitcoin tokens" 7/25/2021 on FTX when the Bitcoin rate was BTC1/$34175 for 329USDT. 1 btc have been around $40000 for a long time now, and currently it's even down to ≈1BTC/22000 but my 3x short Bitcoin position is still currently only worth around 111USDT. I understand it's about time and value of an underlying asset. I also learned about "volatility decay" then there is a fee on this leverage. Furthermore, I don't think btc will fall much under $20000. But how long will it take for my short position to
recover in this bear market, will it ever?
Post
Topic
Board Trading Discussion
Re: FTX Review: The Best New Crypto Derivatives Platform
by
Dyneema
on 16/06/2022, 14:05:34 UTC
I bought some "3x short Bitcoin tokens" 7/25/2021 on FTX when the Bitcoin rate was BTC1/$34175 for 329USDT. 1 btc have been around $40000 for a long time now, and currently it's even down to ≈1BTC/22000 but my 3x short Bitcoin position is still currently only worth around 111USDT. I understand it's about time and value of an underlying asset. I also learned about "volatility decay" then there is a fee on this leverage. Furthermore, I don't think btc will fall much under $20000. But how long will it take for my short position to rebalance in this bear market, will it ever?