Greetings friends, in this video we will talk
about some basic concepts related to the margin characteristics of
the crypto market. These are: What is margin? What is the relationship
between margin and leverage? What are the situations called spot,
cross, fixed, isolated margin? What are the differences
between them? We will talk about derivative products and
we will look at the margins in the crypto market, that is, the bitcoin markets, and
look at the differences between them. We’ll also look at a few things that are relevant to
both the newly added spot margin and USDT margin at OKEX I wanted to start
with a simple joke. Archimedes said that give me a big enough
leverage and balance point and let me move the world. The same goes for a trader, give a trader a
big enough leverage and exchange to make his world move. Of course, this is
bi-directional, good or bad. Margin trade is a trade method
that involves a lot of risks. It is not an investment methodology,
but a trade methodology. Never done all-in. A little more risk management is a method I
recommend to do a little short-term transactions. So never risk all your money. Like I said, it can move
your world in two ways. Lets check the some terms about margin Margin trade (long=rise, short=decline)
is the type of trade with collateral. So you enter the
transaction with debt. This debt is given by the stock
exchange or brokerage house. Leverage also; It is the coefficient that
determines the amount of money you can borrow as a guarantee. So simply the equation; Collateral
x Leverage=Position Size. Your guarantee is here
leverage system here position size is also the
amount entered here. The more you put it here, the more you can
get according to your leverage, ie the size of your leverage. For example, on a platform with 100x
leverage, you can borrow $ 1 to $ 100. So if you’re using 100x leverage, that means;
When you put 1 dollar you can now trade with 100 dollars. Likewise, you can borrow $ 10 to $
500 on a platform with 50x leverage. In fact, what you call leverage is the coefficient
that specifies the amount you can borrow. Let me remind you: you
can never lose debt. So if you borrowed $ 1 to $ 100, you have the
right to lose only $ 1 in your transaction. So when you open a 100x transaction you can
only lose 1 dollar because your collateral is 1 dollar in that transaction. If you can lose $ 1 in $ 100, that
means your liquidation is 1%. Many Trader confused about
spot price, and spot market Spot price means cash price. It is the amount you will pay or receive for
a unit price today or in a very short period of time when buying or selling a
financial product in cash and instant. So we can actually translate as
a live market direct market. Futures is the price; This is the amount that
you will pay or receive in the future for the unit price when making a futures purchase
or sale of a financial product or commodity or bitcoin. It is actually a kind of
deal you call futures price. In spot margin, you trade
by borrowing real products. And you trade real product. Here, usually in the twitter spot price or spot
margin, which is also mentioned everywhere, this shows the actual
buying and selling. So if you are trading in the spot market, many
of you are already doing so, many altcoins only have a spot market. So in cash, you give the money, you get the
altcoin in exchange, or you give the altcoin, and you get the dollar
or another coin. We can evaluate all of them
within the scope of spot margin. This type of process is
called spot & spot margin. Also the only difference is that you are
dealing with debt actually products are real. Can you borrow money from
your friend and get altcoin? Yes you can. You get 100 USD from your friend and if you go
with that 100 USD and buy altcoin this is actually kind of spot margin 🙂 That’s when you provide the debt to the stock
market or through another user when you provide spot margin. But futures margin, which we call
futures margin, is not like this. These; purchase or
sale contracts. They are usually markets where futures contracts
are traded instead of real products, and there are two types: perpetual
and periodical. To put it simply, it is often a very important
products in the economy, in companies fund management or in Hedge funds For example, 2 million dollars will
come to your company after two months. So you will have 2 million
dollars income after 2 months. You are now making payments with the Turkish
lira and you are worried about the fall of the dollar against
the Turkish lira. If the dollar falls after 2 months, I will not
be able to make my payments, if it increases, it will put me in trouble. You need futures contract. You’re going to buy a contract that says you’re
going to sell 2 million at this price, which you have to sell
after two months. You are fixing your economic
situation at that moment. If you are a retail trader, you don’t manage
funds, you don’t work in hedge funds, which is very small in
the crypto market. It is not a party that we are very interested
in, but you can think of the logic that is not the things that are produced to deceive
people, in fact, they are very important products to make money at the market. States, companies and corporate traders can
hedge their positions, economies using them, reducing risk factors. There are perpetual and
term contracts here. As I said before, term contracts have a certain
date like 1 month or 2 month termly agreements. Perpetual contracts, on the other hand, are
contracts in which this agreement is continuously maintained. If you sell at a price this does not end at
any maturity, you can always provide that contract in your hand. As I said, if we are a retail trader that manages
our own money and tries to earn something with our own money, there is actually
no big difference in terms of us. Because we don’t think about keeping a 2-month
or 3-month position because we don’t think much of it because there are no transaction
fees or hedge positions for any different income management. Now, a very confused topic every margin trader
always asks the question Cross margin and fixed margin. In some places it is known as isolated. We can call it fixed or
isolated (static margin). When we say cross margin, it is the type of
margin that uses all of the wallets balance. I want to talk about
fixed margin, friends. The margin that you allocate to the trade
is the type of margin in which the collateral you have invested
has not changed. For example, you have 20 dollars in your account
and you open a trade by giving 1 dollar. So you gave $ 1, entered 100x process, what was
your liquidation? of course its 1% theoretically. We usually call
them fixed margin. Cross margin uses all the
money you have in your account. So when you have $ 20 in your account, you
entered a transaction with $ 1, but this time you marked cross margin. What happened this time? Margin uses all of your $ 20. Do not open 100x
process too much. You have $ 20 in your account and
you opened a 100x transaction. If your $ 20 is trying to fix the $ 100 debt,
you can lose $ 20, which means that it brings 20% liquidiation So the difference between these two
changes only your liquidation. Usually people lose all they have
in cross margin. Isolated margin gives you $ 1 and you only
lose it, but the cross margin is like this, the more money you have in your account, the
more the price goes wrong, the more you lose money This is something that people who generally
don’t think about their own position and who open trades without thinking about
what they end up are very popular. If you are new to margin, I definitely
recommend using fixed margin. Here I made a table about the crypto
exchanges and margin properties. I wanted to compare
three platforms. I would have liked to add a Turkish platform
here but they are not interested in margin trade. So I thought I’d do an OKEX
Binance and Bitmex review. First of all, let me
include basic features. It is important for features like
Altcoin trading or deposit withdrawal. Here, of course, in the context of altcoin
trade okex and binance also have a wide range of options. Bitmex doesn’t have it, you
can’t trade spot altcoin. There are thousands of types of deposit and
withdrawal in okex and binance, you can deposit the desired altcoin
and fiat money & USDT You can only deposit and
withdraw Bitcoin at Bitmex. It is only at 4
o’clock, once a day. Bitmex is very difficult to return to fiat
status (dollar) when you need to you must open new trade again. So you’ve made a profit after, you can say you are done with Bitcoin and you want to return money to the dollar
but can not return. There are situations such as 1x short to hedge your dollar — Very Complicated process for easy task, but you can do in OKEx and Binance. You can convert to the dollar and
the altcoin whenever you want. In terms of margin trading I think there are
too many options in OKEX. binance and bitmex not that much choice. I mean here is not only the number of coins,
but as a variety of margin types, I think binance and bitmex
is behind OKEx. How many years has
Margin traded? There are two years at Okex, which is very
important because margin systems do not work like normal trading, they are more
specific and need to be considered deeply. Binance has been
there for 2 months. Bitmex has 2 years. Here again binance falls behind. Spot margin and spot
margin leverage bitmex has no spot margin. They are all futures, so
they are all on contract. Binance also have 3x, okex also have been
there for years and 5x looks as good. I’ve tried the spot margin in binance. Definitely stay away because it is so complicated system. When you want to stay out or wanna in the trade. Lend Borrow process is much comlicated. but OKEX is more easier for
these trades. Futures margin OKEX gives us 100x bitmex 100x binance 125x. So let me say, 125x is in front of the others, But its useless. For bitcoin and ethereum, 100x is a very pale
figure, in fact, a leverage you should not use. Only use it for trades you can make a chance with little fund. Even theoretically, what we call
100x brings the liquidation to 1%. Today, if bitcoin is $ 8000, you are
liquidating in the $ 80 movement. When you remove commission fees and charges,
your liquidation price is almost $ 50. That is, a $ 50 change in bitcoin can explode
a 100x process immediately and is very usual. Even if 3 people buy and
sell, it could change 50 usd you know. Think what means 125x now :)) %0.8 liqidation price which is 35-40 usd for liqidiation:) Perpetual and expiry date contract all three has it. okex i think of review, its features are better
than others also for new futures contract feature. Okex has both spot margin and
future margin called usdt margin. We will examine this in terms of commission,
leverage, ease of use and trust How to use Okex How simply opens margin positions. how you process margin. When you open or close trade what you need to pay attention to some calculations related to a few information. Too many wallet features in OKEX
but the first thing you need to know is that, especially if you are trading at Okex spot
margin or futures margin, You have seperate wallets for them. It is good feature to separate these wallets. So we can track our wallets seperately. So when you transfer $ 5 to your margin account,
your will never lose money outside from wallet. so if you’re trading with $ 5, you’ll lose $
5, so you don’t get mixed up in your other wallets. This is good system for these type trades. Here to use usdt margin of
course we need to have tether USDT Now, my tethers at spot wallet. I bought it from spot market , so I will transfer, spot to futures wallet I will transfer all
of it, ok its transferred. You must re-transfer back to the spot
wallet when you want to sell or withdraw. Here you can re-transfer it. Now $348 transferred to my futures wallet So i can trade now. Lets look will futures shows the
appropriate amount us ? Sure, here it is as we can see. Here there is already a
very simple trade desk here, 8089.9 is first sell order 8079 is first buy order and 8087 is the last traded price Now lets trade and examine
the margin properties. Margin mod, there are two types. fixed and cross margin. What was the difference? If I click cross, I had $ 348 here, so I’m
gonna use all my $ 348, but what am I doing? but I do not want to use them all. I just want to use as much as needed for my position. I clicked fixed leverage Now i can adjust here my leverage I can pull 0.01 to 100x with very easy tool I want smaller margins Let’s make it 20x because easy for calculation when I set 20x here shows us a maximum position size as 0.86 BTC How much did I have? 350 usd When I multiply my $ 350 by 20x leverage, $
7,000 corresponds to 0.86 btc. If I pull it 100x. 4.3 bitcoin is the maximum position size i can go into the trade with this amount but if I use this amount, according to calculation i will lose all i have when $50-60 usd movement at price. Lets continue with 20x leverage here is the necessary warnings. Now all the trades you make will be 20x both long and short. Now we can open a trade. just like standard buy & sell Here I will not mention the details of the
limit and Advanced limit order types. OKEX announced Market Order will added to USDT futures. I would prefer to have the market order. Lets try LONG position as you know our margin mode is fixed and leverage is 20x for both long and short there is a sell order at 8097.9 usd for 0.18btc. what we do is to buy 0.02 btc from this order I must mention here you see 162 usd it shows, this is position size. Here eveyone are always confused as if you think that you have invested 162 usd to this trade. Its wrong of course. so I have 350 dollars I’ve opened
a $ 162 transaction that I think I spend half of my money. it is not on any platform,
this is leveraged amount with 20x Since I have 20x leverage, I actually
spend 8 usd from my wallet, so this is 8 dollars right now. So i can only lose 8 usd from this position. Lets continue to our long trade if price isnt changed. Ok there is no change. Long I click and my position is opened right now. its immediately opened becase there is a sell order matching with my order. Lets examine the opened long position here, the size of trade is 0.02 bitcoin My margin is 8.09 usd now here is margin ratio is 5% the %5 of position size is your money which you spend for this position. Look, the money I put was 5% in theory, but it went to the fee’s as %0.03 8.9 dollars I spend for this trade, my current instant profit loss is changing to 0.02-0.03 tether. as of percent are changing like % -0.44-46 This is my average price for this trade this is the price I entered this is my liquidation price. Now here is a question always asked if I change the leverage for opened position, will I make more profit or lose ? Think about it, could you? Now here we have opened position with 20x leverage with a 0.02 bitcoin position size. if you change the leverage, you will change only the amount you spend for this trade. (8.09 usd) you put 8 usd with 20x when you increase the leverage to 40x it means you put 4 usd to this trade. you cant have more profit or loss. Let me show you. 20x to 60x I’m pulling it. as you can see the numbers nothing change. But one thing. the only thing is to change is the required margin for this position. Now we need to learn about Add/Remove margin section, let me talk about this section. There is an Add and Remove margin so we have reserved 8 usd for this position we can add another 8 usd into this position if you want. or remove it. the add or remove changes only the Liquidation price your position have adding margin will give you bigger liquidation while removes margin gives you tight liquidation price use here to add and use here to remove. now its 60x, i can withdraw from my 8 usd in the below, good dynamic calculation shows us what is changing. You can track your how your liquidation is changing while adding or removing margin. if i continue to add margin, I will have not
a liquidation price after a certain price. So if I spend $156 in this transaction, there would be no liquidation, its actually same as spot buying or 1x 🙂 Now i will add 30 usd to this position, when I add 30 usd, leverage doesnt change. now my liquidation price went much deeper. 6192 usd So after you opened position, changing leverage doesnt effect your profit or loss. It only change spent money for this position. Without changing position size, you cant win or lose more. To increase it you must open new positions. Now let’s close this process, just like standard sell prodecures. think you have 0.02 bitcoin and you want to sell it regularly. Who will buy it ? I have to sell it to the first buyer on the
board or I can write limit order. Or you can use here to close section to create orders. I want to close it from here. the order of first buyer can cover my position. i clicked and copied it. just like standard selling i will hit the close. it closed directly because i sell the first order. Let’s look at the details of past orders right here. I opened a trade worth of 0.02 bitcoin and get loss of $ 0.08 usdt Let’s make a quick look at the short position, what we do for short is sell . If I want to sell
bitcoin, who do I sell? I’il sell it to first buyer of course. I will sell bitcoin with 20x leverage with a 0.02 btc position size. Short opened but partially filled, waiting for all the order filled. Now no pending order. The whole position opened,
so now I’ve made a whole sale. I sold 0.02 bitcoin I gave $ 8.08
as a margin for the position. I gave almost 5% collateral so I wanted to profit from the decrease of
bitcoin price, all the other issues are the same for short. now you will earn money as bitcoin price decrease, you will lose money if it rise. all settings are the same, the only difference here you sell 0.2 bitcoin What do I need to close this position ? So, which sides I must look at orderbook ? Of couse i sold bitcoin, now i need to buy it from the first seller. If you open and close position too much you will lose money because there is a difference between sell and buy orders. the difference is called as “Spread” in the trading world. if you made overtrading with 100x, you will lose your money because of spread and commissions. Now What am I gonna do here to close it? To close this position, the first sell order here is 0.2 btc
i will buy from him. In fact, it could be more clear if this button says BUY I bought it and as you can see
the trade closed down. you can do the same thing from here i lost 0.08 usdt again in fact Okex has very easy platform to use They made complicated trades become easier. Very nice platform has many features, swaps, margin trading Maybe i can record new videos about these features. Let me tell you that there is a good referral program. if you trade 16k usd both you and me earn 10 usd. That’s why I’ll put my referral
link in the video description. This may look very big at $
16,000, but it’s easy to make it in margin trade. If you want to
become a member, I gave my referral link in the description below. Thank you friends, see
you in another video.