Guy loses 90k in 5 mins

[Anonymous No.4684769]

Read this and feel better about your life

https://www.reddit.com/r/ethtrader/comments/7gmdre/yesterday_bitfinex_tricks_ruined_me_104k_125k/

Sorry for linking reddit but this is a word of caution for all of you in margin trading. This is an unregulated market, dont play with fire too much

[Anonymous No.4684874]

>>4684769
This guy in this post is a dumb motherfucker. This stage of the Crypto Revolution is the pinnacle of dumb money getting into the market. This guy is pissed off that he doesn't understand the concept on margin trading and margin calls and got BTFO as a result of it.

tl;dr A fool and his money are soon separated

[Anonymous No.4685194]

>margin trading volatile assets

Dumb fucks get what's coming to them.

[Anonymous No.4685242]

>>4684874

yea of course, but it doesn't change the fact that there could be insider trading on exchanges

that would be fine no?

[Anonymous No.4685288]

>>4685194
Margin trading makes assets volatile

[Anonymous No.4685307]

Nobody shorted BTC with high leverage and lived to tell the tale
Prove me wrong.

[Anonymous No.4685324]

Honestly? It probably was bitfinex inside trading against their own order book.

Does that matter? No. This has to be factored in to margin trading something like cryptos.

[Anonymous No.4685326]

>>4684769
What he's describing literally happens on nasdaq. Only he got extra destroyed by the lack of circuit breakers and other means of stopping huge declines.
>they see your position and manipulate to take them out
Yeah, sounds like most nasdaq micro caps
>>4685242
It would be, and is isn't insider trading. It's basically market making.
Internal trading is a better term. Exchanges aren't trading on non public info, they're simply trading with info at a depth not available to the average trader. Again I see this daily on nasdaq

[Anonymous No.4685332]

o i m laffin

[Anonymous No.4685347]

>>4685242
yup totally fine, the user who uses that site agrees to the terms, and terms state you are SOL if shit goes down, they are being nice if they reverse trades or provide credits or some shit.
Especially with margin trade lucky the guy isn't on the hook for millions.

[Anonymous No.4685351]

Didn't Metaverse get fucked as well?

Damn I really should store some dollars and place a stupidly low buy order. It is bound to happen again.

[Anonymous No.4685353]

>>4684769

Margin trading is the most retarded thing you can do. You might get lucky a few times but eventually you'll blow yourself out and lose everything.
The key to making gains is to hodl and be patient. Maybe buy dips and sell profits.
Can't do that with margin trading. Every hodl position in margin will eventually blow up

[Anonymous No.4685371]

Serious Question, why not place Buy orders in advance to make big gains on flashcrashes?
Do they happen often?
ie: pick 10 coins, put unreasonable low buy orders on each, wait for flash crash...profit?

[Anonymous No.4685392]

>>4685371
might as well buy the lottery

[Anonymous No.4685393]

>>4685242
This is why it's important to have regulated markets and why unregulated cryptocurrencies will inevitably fail. I'm only here for some quick cash speculation.

[Anonymous No.4685395]

>>4685371
I do this. It rarely hits, but it's an amazing payday when it does.

[Anonymous No.4685399]

>We all know that many of these Crypto exchanges can't be trusted

So, why the fuck this faggot held his money there?

[Anonymous No.4685400]

>>4685242
If there's a big position in the Forex with a stop, the price will try to get there. Billion dollar options expiries regularly get btfo, even central banks can get caned. Welcome to markets.

[Anonymous No.4685403]

>>4685371
If you look at the complete order book you'll always see people placing large buy orders at the bottom in case of flash crashes.

[Anonymous No.4685407]

>>4685288

Bitcoin is already volatile enough as is. That's why margin trading crypto is retarded as fuck.
Might as well sell your house to bet in all on a single number on roulette.

Sure your gains would be absolutely astronomous but most likely you'll just lose everything

[Anonymous No.4685411]

>>4684769
You just don't want us to get rich, fuck you.

[Anonymous No.4685653]

>>4684769
reading through, i'm guessing the guy is a pretentious douche.
>vacation on thailand
fucking cunt. i wonder how much he did lose, i mean how much he deposited. if he just got lucky like most retards he probably lost nowhere near 90k

[Anonymous No.4685809]

Bitfinex has no stop loss? Fucking retarded if so

[Anonymous No.4685947]

>>4685809
Do stop losses even matter in case of market crashes?
I mean even stop limit orders.

[Anonymous No.4685998]

>trading on margin
>on an unregulated exchange
What the fuck did he expect.

[Anonymous No.4686000]

>>4685393
Regulation will not stop flash crashes. It happens in regulated markets as well. It happens more often in crypto because everyone is always extremely net long and there's is very little liquidity. A small correction and margin calls start cascading selling. Regulations will not prevent this. Dumb money needs to stop buying ath with leverage and liquidity needs to increase to reduce chances of flash crashes.

[Anonymous No.4686024]

>>4685242
It is possible exchanges themselves using insider knowledge can trigger liquidation cascades and profit off them.

[Anonymous No.4686031]

>>4684769
Margin trading is bad

Margin trading on bitfinex is just stupid

They are clearly manipulating the market and stealing people's money

[Anonymous No.4686060]

>>4685947
I guess closing your position at a point that you wont get fucked by leverage is never bad...


The fuck is that question? Give me your money holy shit

[Anonymous No.4686086]

>reee i lost pocket change money i want le regulatuons reeeee
stinky normie

[Anonymous No.4686132]

>>4685407
This

[Anonymous No.4686358]

>>4684769
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[Anonymous No.4686400]

>>4686060
Actually my question wasn't about risk management and putting stop losses but about the sheer force at which the prices falls would render stop limit order completely useless.

For instance, you're long with leverage on OMG, Bitfinex dumps it's stash with a market order that walks down the order book from 40$ to 3$, your stop limit order to sell at 35$ doesn't matter anymore because you're liquidated almost instantly, does it?

[Anonymous No.4686505]

>>4684769
>those comments

[Anonymous No.4686552]

>>4685307
Twitter.com/bitmexrekt seems to agree with you

[Anonymous No.4686589]

>>4686358
kys

[Anonymous No.4686626]

You cant regulate human stupidity

[Anonymous No.4686646]

>>4685326
Can you maybe link exames or give examples please, v. interesting.

[Anonymous No.4686688]

>>4684769
>Margin trading shitcoins

[Anonymous No.4686861]

margin trade neo lmao.

cmon man. you were a greedy fucker and lost.

[Anonymous No.4687077]

I just want to point out that this can easily be done by users, not Bitfinex. Often the volume in these books is not that high and actually someone with relatively little money can cause a flash crash.

Keeping in mind that Bitfinex allows a 3.5x margin and a loss of 15% will result in a forced liquidation from your opening position. So all someone has to do is drop the price by 15% to be almost guaranteed to cause some serious domino effects and crash the market.

I've written about this before here, where I break it down step by step by using the GDAX flash crash as the example.

Looking at the order book of NEO/USD on Bitfinex right now, it's not that deep. To cause a sudden drop of 15%, you need to sell approximately 34,000 NEO, which is approximately worth $1m right now. You might be thinking, hey ho, $1m is a lot of cash for someone to play with! Well, actually with margin trading, someone may have a position open of around $300k of their own but on margin of 3.5x, resulting in a position holding $1m worth of NEO. The dude decides to close that position immediately in a market order? Sudden drop of 15%, high possibility of cascading liquidations from other margin traders leading into a full on collapse. Even a sudden drop of less than 15% can cause a crash in some circumstances.

If you think $300k is a lot to play around with on margin, you are underestimating how much money some people have made on crypto over the years. They are well aware of how margin trading works and how causing flash crashes can be super profitable if they have orders in at low prices. They do this on the micro scale all of the time by dropping it far less % in the hopes of causing some liquidations or stop loss orders to trigger.

I'm just saying all of this because it's not fair to put the blame on a conspiracy by Bitfinex (though I've had my concerns with them over the years) when the simpler explanation is a user caused flash crash, which are not so uncommon in margin trading.

[Anonymous No.4687152]

>>4686589
Just posting a reddit response in a reddit thread, friendo

EDIT: Thanks for the gold, stranger!

[Anonymous No.4687382]

"Secondly, the “no hot wallet” setup that is at the core of BitFinex’s design, although admirable, has a problem of its own: if, over the course of one day, it happens that users are consistently buying more BTC than selling, or vice versa, then in order for BitFinex to be able to honor all of its users’ positions it needs to step in and act as the counterparty to some of its users itself. This kind of setup is known as a bucket shop and is heavily frowned upon (and in many jurisdictions even illegal) because it creates perverse incentives – the shop can potentially make an order on the markets large enough to significantly bump the price up, liquidate all of its users who had opposite positions at high leverage, and keep all of their funds as profits. Even if Nicolle does not want to create a bucket shop, given a no hot wallet setup Bitfinex may have no choice but to periodically temporarily become one."

http://archive.is/aKILq

[Anonymous No.4687550]

Somehow I'm thankful I'm brainlet enough to not understand margin trading. Most I've done is buying REQ low and selling high. But I usually just hodl.

[Anonymous No.4687576]

>>4685809

Stop losses often cause flash crashes
One massive stop loss activates and then it causes a chain reaction flattening the entire buy book

[Anonymous No.4687803]

>>4685998
>hnnnngggg free money
>omg i'm gonna be so rich
>i'm an investing genius

[Anonymous No.4687903]

brainlets get rekt margin trading, what else is new?

[Anonymous No.4687926]

>>4687152
S E E T H I N G

[Anonymous No.4687928]

[Anonymous No.4688052]

>>4687576
Order books on Bitfinex might be much thinner than reality too.

https://medium.com/@bitfinexed/fake-it-till-you-make-it-when-bitfinex-themselves-used-to-spoof-their-entire-orderbook-18294585338

[Anonymous No.4688082]

>the money is not lost it just belongs to someone else now