Join us on December 22nd at 5PM PST (01:00 UTC, 09:00 SG/HK) as the CEO of FTX, Sam Bankman-Fried, Founder of Ethereum, Vitalik Buterin, and Managing Partner at Dragonfly Capital, Haseeb Qureshi will be getting together before the holidays to share their views on giving in crypto, Effective Altruism, and…

A surprisingly large number of us come from a trading background. And as traders, we think a lot about capital efficiency and liquidity. This is reflected in some of the fundamental decision on the platform including subaccount-wide cross-margining system and easy ways to access leverage.

Today we’re introducing spot margins…

Let’s say you own 100 BTC and you want to hedge them. You have two options: short sell 100 BTC/USD on an exchange with margin trading, or sell 100 BTC futures. Which is better?

Arguments for Margin

Margin trading has two great properties.

The first is fungibility. Let’s say you own 100 BTC…

Normal Trading

Say some account A deposits $1m of collateral to buy $5m of BTC futures. They are currently 5x leveraged, and a 20% BTC move away from bankruptcy. They can trade normally.

Account A:
Position: long $5m
Assets: $1m
Leverage: 5x
Distance from bankruptcy: 20%.

Orderly Liquidation

Now say that BTC drops 11%…

FTX — Cryptocurrency Derivatives Exchange

FTX is a cryptocurrency derivatives exchange built by traders, for traders. Find us at ftx.com, https://t.me/FTX_Official, and https://twitter.com/FTX_Official

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