Poloniex - Detailed post reg lending and margin trades

Hey all,
This post is my entry in Spotlight on Poloniex contest. You can view the detailed information about the contest [here]. You can read my previous blog about Poloniex Poloniex - Exchange review part 1 and Poloniex - Deposit and withdrawal guide & Margin trades.In this blog, we are going to see how margin trade works and its principles.

_{Image Source and edited using canva.com}

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In the beginning, I don't know about the margin trade. Recently I get to know about margin and futures trade. So I am here to share my thoughts about the margin trade in this blog. Let's see what it come when we search on google.

In the stock market, margin trading refers to the process whereby individual investors buy more stocks than they can afford to. ... A margin account provides you the resources to buy more quantities of a stock than you can afford at any point in time.
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The google definition is about the stock market but here we are discussing the Poloniex cryptocurrency market. Let's reframe for our convenience
"In the Poloniex cryptocurrency market, margin trading refers to the process whereby individual investors buy more crypto than they can afford to. ... A margin account provides you the resources to buy more quantities of crypto than you can afford at any point in time."

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Here we need to know about the two factors to know about the margin trade

• Lending
• Borrower

Lending:-

Here is the google result of term lending.

the action of allowing a person or organization the use of a sum of money under an agreement to pay it back later.

Yeah! here the whole margin trade works as a peer to peer connection. I will explain this clearly in later chapters. Here we can see how lending is performed in the poloniex exchange.

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Look closely we need to lend a minimum of $50. And you can find this lending option on the top left corner of the home page.


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Here you can see the account having 998 DOGE coins in the lending account balance. I got this screenshot from the FAQ of poloniex so this is an old screenshot so only this doesn't meet the need of a minimum 50$ lending value sorry for that.


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If you wished to offer lending mean you should need to add some of the details like in the above screenshot. Rate is nothing but an ROI of 1 day and the amount of stolen you are willing to lend. and duration of the lending process and the final check box is about the auto-renewal of the entire process. For example, as per the above screenshot, the user is willing to provide 998 DOGE for 2 days in 0.0028% of interest per day. When the borrower accepts the offer the deal came to end after 2 days. Then the same order will be automatically placed in the lending list without doing it manually.


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This is the screenshot of your order pending which means still in open. And your order will be listed in ascending order of interest rate. As much as the interest rate lows are directly proportional to the possibility of order gets filled.

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Once the order is accepted, it moves to the 'My Active Loans' section. Although you can't cancel an active loan, you can disable 'Auto-renew' so your funds return to you immediately the duration expires as can be seen below.

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Borrower:-

Borrower is margin trader who uses the option of lending. When the lenders offers their crypto for certain interest rates. Here this borrowers uses the benefits of lenders and we can't say everytime the borrower made a good profit from the lenders money. Here is simple for all the trades "Where there is way to earn more there itself a way to loose more". So keep in mind during margin trade.

Main thing in Margin trading in poloniex is we need to be in level 2 verification which requires national identity or driving license.You can simply go to margin trade by clicking the link or else you can find in the upper left of the homepage.

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Referral bonus

Like every exchange, they too provide referral bonuses for those who invite their friends to join Poloniex through their referral link. You can signup through my referral link here.

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I just need to thank you for reading upto here.
This post is set 100% power up.
_{Note:- All the images used in this photos are copyright freeand my own photos}

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𝓣𝓱𝓪𝓷𝓴 𝔂𝓸𝓾
𝓢𝓽𝓪𝔂 𝓱𝓸𝓶𝓮 𝓼𝓽𝓪𝔂 𝓼𝓪𝓯𝓮