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3 myths, debunked – The Poloniex blog –

3 myths, debunked – The Poloniex blog –

Margin trading is among the most complex and misunderstood trading practices.

That’s why as we at Poloniex have made new margin pairs available we want to share some basic educational resources. (Margin trading is only available to non-US customers. Non-US customers can trade, at up to 2.5 times leverage with BTC as the base pair, the following assets: EOS, ATOM, XRP, ETH, BCHABC, BCHSV, ETC, XMR, STR, FCT, LTC, BTS, DOGE, DASH, MAID, and CLAM.)

Here are some common margin trading myths, debunked:

Myth 1: To benefit from margin trading I have to actually margin trade.

No. Instead, you can earn interest on your funds by lending to other customers. When your loans are being used by margin traders, you are earning interest on them, which is paid to your lending account when a contract closes. (Poloniex takes a fee of 15% from the interest you earn, so be sure to consider that when you place your offers.) Your active contracts are listed under My Active Loans.

Myth 2: I can only use margin trading to go long on an asset.

No. You can use margin trading to long or short an asset. (To go long means to buy something with the expectation that it will rise in value; to go short means to sell an asset with the intention of repurchasing/covering it at a lower price.) For example, as we wrote about previously here and here, people are using margin to long and short some of the recent assets we made available to margin.

Myth 3: The worst that can happen is Poloniex issues a margin call.

No. Poloniex issues margin calls to avoid a forced liquidation. A forced liquidation is when all or part of your positions are closed automatically to prevent further loss and ensure you do not default on your loans. Forced liquidations occur when your Current Margin dips below your Maintenance Margin. It is strongly advised that you check the markets and your open positions regularly, mitigating your risk as necessary by reducing the size of your positions or transferring additional collateral into your margin account.

Please click here to learn more about margin trading or here (non-US customers) to trade margin. If you have any questions, please reach out to our support team here.

Published at Wed, 08 May 2019 16:38:59 +0000

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Winklevoss’ Gemini Exchange to Allow CBOE to Use Bitcoin Market Data

The famous cryptocurrency exchange platform, Gemini, agreed to sell its bitcoin market data to the Chicago Board Options Exchange, Incorporated (CBOE).

Getting into the bitcoin Game

The cryptocurrency exchange, Gemini, was founded in 2016 by the famous Winklevoss twins. In October of that same year, the exchange officially received permission from the New York State Department of Financial Services to operate in 31 states. Gemini’s major focus had originally centered around bitcoin trading, however, with the popularity and value of Ethereum rising exponentially, the exchange added Ethereum trading in May of 2016. Currently, the exchange has a daily transaction volume of $52 million.

An Agreement with the CBOE

Gemini Agreement with the CBOE

According to an official press release, Gemini and the Chicago Board Options Exchange (CBOE) entered into an agreement to exclusively use Gemini’s bitcoin market data. The details of the agreement state that CBOE will have an exclusive global multi-year license to use the exchange’s market data.

The cryptocurrency exchange’s market data will help the CBOE to create bitcoin derivatives products for listing and trading. Currently, the CBOE is awaiting regulatory approval from the U.S. Commodity Futures Trading Commission (CFTC), in order to launch its cash-settled bitcoin futures. The report suggests that cash-settled bitcoin futures will be available for trading on the CBOE Futures Exchange in the fourth quarter of 2017 or early 2018.

Ed Tilly, Chairman and Chief Executive Officer of CBOE Holdings

Ed Tilly, Chairman and Chief Executive Officer of CBOE Holdings, said:

Gemini has demonstrated time and again its foresight and expertise in this area of finance. The team’s focus and determination to grow the bitcoin market and secure appropriate regulatory oversight as a New Yorktrust company makes them ideal for this venture. We are incredibly proud of this agreement and look forward to all that we can achieve together.

Gemini's Chief Executive Officer of Gemini Tyler Winklevoss

Gemini’s Chief Executive Officer of Gemini Tyler Winklevoss also added:

Gemini’s key concerns in the cryptocurrency ecosystem have always been security, compliance, and regulatory oversight. By working with the team at CBOE, we are helping to make bitcoin and other cryptocurrencies increasingly accessible to both retail and institutional investors.

bitcoin users believe that bitcoin based futures will enable Wall Street traders and investors to get into the bitcoin ‘game’ without affecting their ordinary portfolios.

What are your thoughts on the agreement between CBOE and Gemini? Do you think that bitcoin futures will succeed? Let us know in the comments below!

Images courtesy of Pixabay, Unsplash, CBOE, Acast

The post Winklevoss’ Gemini Exchange to Allow CBOE to Use Bitcoin Market Data appeared first on Bitcoinist.com.

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