buying and selling – Am I misunderstanding shorting a foreign money wherein I maintain collateral on?
I wish to know if I misunderstanding shorting a foreign money wherein I maintain collateral on?
In my margin account I’ve 1 BTC
I quick solely 4 BTC on BTC/USD regardless that I’m allowed as much as 10x (The upkeep margin is that I need to keep)
The value raises 20%
Neglect for the second the curiosity on the 4 BTC I simply borrowed…
I now have 20% extra collateral? Thus I’ll by no means get liquidated for the value going up? Since my margin’s worth goes up with the BTC? The unrealized loss is mitigated by the the upward worth? (That means I’ll have all the time have the collateral to assist the upward?)
In fact when it goes down (because it all the time does) Any collateral worth I’m dropping is made up in Revenue? (In fact I’ll all the time exit with a revenue if the value goes down)