Margin requirements for non-centrally cleared derivatives

How to Trade Cryptocurrency | Unicoin DCX

How to Trade Cryptocurrency | Unicoin DCX
How to Trade Cryptocurrency | Unicoin DCX
Cryptocurrency trading is carried out across various platforms. As a result, day by day we can see tremendous growth in the volume of these trades. There are several methods to carry out cryptocurrency trading. Various brokers and exchanges are there that offers the facility of leverage in cryptocurrency trading. However, margin trading in cryptocurrency is different from the margin trading of others forex or commodities. In cryptocurrency trading, traders may opt for a loan to fund the initial margin amount. Cryptocurrency is also sometimes called a crypto coin. Some of the popular crypto coins available in the market are Bitcoin and Ethereum. Trading is possible with cryptocurrencies in the form of CFDs and futures. Cryptocurrencies can be traded in the form of CFDs, futures or buy to store for a different purpose. Crypto coins trading is of high risk and rewarding nature, therefore examining different techniques to carry out trades can be a better idea.
1.Selection of the Trading Platform You need to go for little research for finding the suitable platform for your kind of investment and your ease of trading methodology. There are web trader, desktop trader, and apps which are available to be chosen. As this is concerned with your security and usability, you need to opt as per your convenience. For this, numerous web portals are available which provides comparative information about the exchanges and their schemes as well. However, the traders need to be very vigilant about such Ponzi offers as it might attract the trader’s attention. Filter out those and select only the reliable platforms.
2.Selection of the Coins Selection of the coins is a very crucial step as there are many coins available in the market that are either very high value or low value as well. Therefore for an obvious conclusion about the choice of a renowned and reliable coin, the value of the market cap is taken into account. Analyzing the investment capability and the market growth potential of the coins, you can rely on and select. Few coins have the good potentiality for growth even if their current value is low as compared to some high worth coins. However, their future potential is still unclear. Coin Selection is, therefore, a crucial aspect of analysis. To get a clear picture for selecting the coins, you can also seek help from your known experience traders.
3.Research for Low Price Prediction There is a level point for every financial security like in commodity, forex, shares and same in the crypto market too. If you have a good entry point then definitely, you can make money. For the same, you have to research the different technical levels which can provide low price for buying the coin and higher level for an exit point for sell off if you are in CFD mode and if not then you may keep safe and secure in the wallet itself. There are various technical tools available which may help out to find the lower level for buy entry and those are the same tools in case of forex or other derivative instruments. It is a general understanding that to buy at low and to sell at high for taking the profit. You are required to conduct a fundamental and technical analysis to forecast lower price entry.
4.Trade and Store in a Secure Wallet It is the final step when you need to click for buying the coin. After confirmation, your wallet holds the desired cryptocoin, and it is designed to transfer the cryptocoin to the designated wallet in the encrypted format which is secured. However, the traders must care to protect the private keys to avoid hacking, fishing of security code or cryptocurrencies.
The above discussions might have provided enough information regarding trading in cryptocurrency, but you may look into more information about crypto trading as cryptocurrency is quite technological and day-by-day it is being upgraded to the next level. Cryptocurrency trading is thought to be more secure in comparison with the other securities because of the implication of the blockchain technology since we know that the blockchain technology is the base for all cryptocurrencies.
Unicoin DCX is a secure platform which makes easy for you to buy cryptocurrency, sell, and store the cryptocurrency and Bitcoin, buy Ethereum, and more.
submitted by unicoindcx to u/unicoindcx [link] [comments]

Discussion: Technology vs. value

Hello everyone. I would like to start a little discussion from a fundamental value perspective. I often read in this sub that Ether is so much more advanced than Bitcoin, Ripple will take over Forex market and often people jump to the conclusion that technological superiority will eventually be reflected in price. However, in my opinion these cryptos all serve different purposes and thus should be valued differently from a fundamental perspective. Here are some hypotheses I would like to discuss:
If Bitcoin is a commodity than in the long-run it should be more or less valued at the marginal cost of production which is the costs of mining the last Bitcoin by the marginal miner. Last time I read this cost is around 650$ after the halvening. If there is profit to be made by the least efficient miner than more miners will enter, difficulty will increase, and we reach the same equilibrium again. If Bitcoin stays below that value for a longer time than miners will exit, difficulty will decrease and we reach again the same equilibrium. Demand for Bitcoin comes from consumers moving money around globally, using it as a store of wealth, or circumventing national regulation. Due to its deflationary nature and slow transaction processing, Bitcoin has low velocity which is good for price.
Ether is used to pay for computation steps performed on the network. Demand is thus driven by applications running on the network as well as the price per computation step. My current knowledge is that this price is not fixed in the future. The value of performing computations on the network is most likely subject to heavy network effects and increases with the number of contracts interacting with each other. Thus, from this perspective, the two most important things for wide adoption by applications should be security and easy access, i.e. low entry barriers. Without a secure platform these network effects will never really materialize. Judging the future velocity of Ether is less clear. If contracts hold mostly Ether as a means of a payment for a contractual agreement between two parties, than velocity can be low in the future. If Ether is only used for paying for transaction on the network and contracts hold also other currencies or lets say mostly Bitcoin in the future, than velocity could be much higher. Higher velocity requires less overall market cap so this would be bad for the price of Ether even if the technology succeeds. My conclusion is that there are a lot of unknowns and even if the technology succeeds, Ether itself has an unclear value proposition.
Ripple's goal seems to be mostly to be used as a transaction layer between banks with a focus on targeting the Forex market. From what I have read, average transaction time using Ripple is 10 seconds. There is no reason for banks to hold Ripple longer than during the transaction because once the money arrives they will exchange it back for national curreny. Let us be optimistic and assume Ripple takes over the global forex market which currenttly trade around 5 Trillion Dollars daily. The market cap of Ripple given an average transaction time of 10 sec would need to be: 5,000,000,000,000/(66024)= 578,703,703.70 where I assume that trading will be 24 hours and each Ripple changes hands 6 times on average per minute. The current market cap of Ripple is $291,042,535. So the market attaches a roughly a 50% probability of that happening. Seems insane to me. What are banks doing? Well they invest in Ripple equity not the currency because the company itself could actually be quite valuable as Ripple charges transaction fees.
submitted by ethonomics to ethtrader [link] [comments]

Collateral+ Podcast Series: The Uncleared Margin Rules ... Uncleared margin rules for derivatives: Getting Ready (Episode 3) Uncleared Margin Rules Initial Margin for Uncleared Derivatives in 2019 and 2020 ... Uncleared Margin Rules (UMR) - YouTube Prequel: The New Margin Requirements and Risk Mitigation Techniques for Uncleared Swaps under EMIR

Read about the margin requirements for uncleared derivatives under EMIR and changes introduced by EMIR REFIT. The margin requirements under EMIR require counterparties who are in scope to exchange margin on their over-the-counter (OTC) derivatives contracts that are not cleared through a central counterparty (CCP). These requirements first took effect from 4 February 2017 under EMIR, subject ... Get answers to the most frequently asked questions about uncleared margin rules (UMR), posting initial margin, and meeting regulatory requirements. Markets Home Active trader. Hear from active traders about their experience adding CME Group futures and options on futures to their portfolio. Find a broker . Search our directory for a broker that fits your needs. CREATE A CMEGROUP.COM ACCOUNT ... Use CME Group cleared OTC products where possible to lower requirements from 10-day margin on uncleared bilateral exposures to the 5-day margin on cleared OTC. You also can add counterparty netting benefits by clearing all trades in a single account instead of bilaterally across multiple counterparties (UMR margins are calculated at the counterparty level). Read more > Shift to futures. Use ... Be prepared for the Uncleared Margin R. ules (UMR) 02. New Margin Rules for uncleared . derivatives (UMR) transactions . What is the UMR about? The global regulatory agenda covering the over-the-counter derivatives market . participants recommends, among other things, the implementation of margin requirements for non-centrally cleared derivatives. Within uncleared margin rules, IM can be calculated using a schedule based approach, or by using IM models. While the parties must agree on the method used to determine the IM that must be posted, there is no requirement for counterparties to use a common methodology. However, in practice, it is expected that all firms will use the ISDA ‘Standard Initial Margin Model (SIMM) TM’ – a ... As the next phases of uncleared margin rules come into force, there will be an economic driver for more clearing of FX. Among foreign exchange market participants, there is a nearly unanimous view that uncleared margin rules (UMR) are the major catalyst for the adoption of central clearing for over-the-counter (OTC) FX derivatives. The Basel Committee on Banking Supervision and the International Organization of Securities Commissions have revised the framework for margin requirements for non-centrally cleared derivativesRelative to the 2019 framework the revision extend by one year the final two implementation phases of the margin requirements. With this extension, the final implementation phase will take place on 1 ... In order to conform with these uncleared margin rules (UMR) requirements, most of the largest broker dealers have already made significant changes to both their business models and supporting technology. Despite this sizeable undertaking in the industry, challenges remain even for players who are already adhering to UMR. Over the next two years, upcoming additional phases of the regulation ... Margin Requirements for Uncleared Swaps CFTC and Prudential Regulators Finalize Rules Imposing Minimum Margin and Capital Requirements on Covered Swap Entities INTRODUCTION On December 16, 2015, the Commodity Futures Trading Commission (“CFTC”) voted to adopt final rules (the “CFTC Final Rules”) to establish initial margin and variation margin requirements for uncleared swaps, i.e ... “Uncleared margin rules continue to motivate clearing.” Barnes continued that there have been two record months of cleared NDF volumes since Clarus last looked at the overall market in November. “2018 has seen average monthly volumes in excess of $700bn each month,” added Barnes. “These volumes are 80% higher than the first two months of 2017.” In addition, open interest was $0 ...

[index] [17762] [16853] [19564] [13739] [633] [15581] [3756] [4755] [15991] [17979]

Collateral+ Podcast Series: The Uncleared Margin Rules ...

S1/Episode 1: Overview of Phase 4 and 5 of the Uncleared Margin Rules by Mayer Brown. 28:34. S1/Episode 2: Navigating the Legal Documentation Process by Mayer Brown. 13:48. S1/Episode 3: The ... A regulation requiring the implementation of margin requirements for non-centrally cleared derivatives. #securitiesfinance #glossary Margin Reform helps clients operating in the financial sector to provide strategy, insight and delivery across derivatives, repo and securities lending for the margin, collateral and legal domains ... Uncleared margin rules for derivatives: Getting Ready (Episode 3) ... What is a Margin Account? What is Margin Trading? - Duration: 10:02. Financial Education 149,576 views. 10:02 . Interest ... In the first podcast of our “Collateral+” series, Gino Timperio, global head of collateral management and financing, puts some context around the 2020 UMR su... Welcome to the Prequel Episode of Initial Margin for Uncleared Derivatives in 2019 and 2020, presented by Edmund Parker, Mayer Brown’s Global Head of Derivatives & Structured Products. This ... FIT Legal Solutions - explanation of Uncleared Margin Rules