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What about all of the exchanges offering significant margin trading? Where does all that credit come from? How can they guarantee that'll all be covered in a si
by banderman 9y ago
What about all of the exchanges offering significant margin trading? Where does all that credit come from? How can they guarantee that'll all be covered in a significant price drop if the buy side of the book is cleared?
- dahdum 9y agoPolo/Bitfinex are peer to peer lending, so the exchange isn't taking the risk. I'm not sure about Coinbase but I vaguely remember it was outside institutional money funding the margin. Derivative markets like Bitmex use a form of socialized loss to remove the risk.