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RE: Spotlight on Poloniex Contest: What You Might have Missed Not Reading Poloniex User Agreement (Part 2)
Poloniex have stated it clearly that trading margin can lead to a complete loss of funds or even lead to the borrower owing. Should in case you lose beyond redeemable points
That's by default is the rule of margin trading regardless of where we are trading. But I think in Poliniex the risk is too low, even during high volatility 2.5X leverage will not lead to a negative balance in unfavorable conditions. Just imagine people play with 500X, 2000X in forex trading, and during volatility, their balance even goes negative and as per rule they are replenished by the user. In Poloniex at least that sort of thing will not happen with 2.5x leverage.
Thank you.
A lot of newbie want to try margin trading for the first time do not know this and when they lose the borrowed funds, they might want to put the blames on Poloniex, so it is good that it is written in the terms.
Trading generally is a risky as it is profitable, it can be a burning fire for unexperienced traders and it can be good when traders are experienced and they know when to stop.