Bitfinex: Bitcoinica Rises From The Grave

Bitfinex: Bitcoinica Rises From The Grave #bitcoin #trading

The idea behind margin trading is simple. If you have an account at a traditional Bitcoin exchange like BitStamp of MtGox, you have two balances: a BTC balance and a USD balance (or perhaps a CAD or EUR balance, or some other currency, depending on what country you are in). Apart from depositing and withdrawing, the only operation available to you is trading one currency for another, reducing the BTC balance by some value and increasing the USD balance by that value multiplied by the current price (or vice versa), also paying a small spread and commission. If you are participating in the exchange as a trader, your goal is to convert to BTC before the exchange rate goes up, and convert to USD before the exchange rate goes down, slowly increasing the net worth of your account over time. The benefit to society from such trading is that it stabilizes markets; a successful trad...

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