Poloniex is US Based Cryptocurrency exchange platform where users can trade with 100+ Cryptocurrency.
Poloniex allows users to do following activities
1. Stop-Limit Order ( Buy & Sell Crytpocurrency)
2. Margin Trading
A stop-limit order is an order to place a regular buy or sell order (also known as a "limit order") when the highest bid or lowest ask reaches a specified price, known as the "stop." This can be helpful for protecting profits or minimizing losses.
The stop-limit box has three inputs:
- Stop - think of this as the "trigger price." If you place a stop-limit order to sell, it will turn into a regular limit order when the highest bid drops to or below the stop. If you place a stop-limit order to buy, it will turn into a regular limit order when the lowest ask raises to or exceeds the stop.
- Limit - this is the same thing as the "Price" on a regular buy or sell order. Once your stop-limit order has been triggered by the highest bid or lowest ask reaching your stop price, it turns into a buy or sell order for the price you enter in the limit field.
- Amount - this is the same as the "Amount" on a regular buy or sell order. It indicates the amount of coins you wish to buy or sell should your stop-limit order be triggered.
Margin trading is essentially trading with borrowed funds instead of your own. When you place a margin order, all of the money you are using is borrowed from other users offering their funds as peer-to-peer loans. The funds in your margin account are used only as collateral for these loans and to settle debts to lenders.Accounts
There are Three types of account's in Poloniex in which you can store your deposited funds: exchange, margin, and lending.
- Exchange account holds the funds you use for regular trading on the Exchange tab.
- Margin account holds collateral used to secure loans used in margin trading. In order to margin trade, you will need to transfer some funds to your margin account.
- Lending account holds funds you can loan to other users and earn interest on.
When you borrow funds and make a trade, a position will open. If you buy, you are opening what is called a long position. If you sell, you are opening a short position. When you close your position, your loans are settled automatically. If you close your position at a profit, the profit will be credited to your margin account; if you close at a loss, the amounts needed to settle your loans will be deducted from your margin account.
On the right side of the margin trading page, beneath the markets box, you will see a summary of your margin account.
- Total Margin Value: The total BTC value of all the currencies in your margin account.
- Unrealized P/L: The approximate total profit or loss you would incur if all of your open positions were closed immediately with market orders, less unrealized lending fees.
- Unrealized Lending Fees: The estimated total value of the interest you currently owe on your active loans.
- Net Value: The sum of your Total Margin Value, Unrealized P/L, and Unrealized Lending Fees. It represents the current total worth of your collateral.
- Total Borrowed Value: The total BTC value of your open loans.
- Initial Margin: The percentage your Net Value is of the total value you can borrow.
- Maintenance Margin: The percentage of your Total Borrowed Value that your Net Value must be in order to avoid a forced liquidation.
- Current Margin: The percentage of your Total Borrowed Value that your Net Value currently is (in other words, Net Value over Total Borrowed Value). Current Margin is a critical value, because if it dips below your Maintenance Margin, your account will undergo a forced liquidation.
How Do I Offer Loans and Earn Interest?
If you prefer to earn interest on your funds instead of trading with them, you can lend them to other users. Click on the Lending tab at the top of the page, then select the coin you wish to offer in the My Balances box on the right. You will need to transfer funds to your lending account to offer them, which you can do from the "Quick Transfer" link in the offer box.
- Rate: The daily interest rate you are offering your funds at.
- Amount: The amount of funds you are offering.
- Duration: The maximum number of days your funds will be held in a loan.
- Auto-renew: Check this box if you want your funds to automatically be offered again at the same rate after the loan they are used in closes.
Once you have placed your offer, it becomes available for margin traders to use. Margin traders will consume lending offers starting with the lowest rate.
Although you cannot cancel an active loan, you can disable Auto-renew, which will ensure that your funds return to you no later than the number of days listed under Duration.
Fees Structure for Maker and Taker
Maker Taker Trade Volume (trailing 30 day avg) 0.15% 0.25% < 600 BTC 0.14% 0.24% ≥ 600 BTC 0.12% 0.22% ≥ 1,200 BTC 0.10% 0.20% ≥ 2,400 BTC 0.08% 0.16% ≥ 6,000 BTC 0.05% 0.14% ≥ 12,000 BTC 0.02% 0.12% ≥ 18,000 BTC 0.00% 0.10% ≥ 24,000 BTC
For lenders, a 15% fee is applied to earned interest.
Find more about Poloniex here