ELI5 : How crypto exchanges work

ELI5: In the world of trading stocks, what is margin buying power?

Is there margin buying power only when the investor already owns securities?
submitted by the_siloviki to explainlikeimfive [link] [comments]

ELI5 margin trading vs interest rates

Interest rates for loans are getting to an all time low. But when you borrow from a stock broker like Schwab, Fidelity, TDA etc. you could pay upto 10% interest. Why aren't stock brokers more dynamic with their margin borrowing rates to become more inline with market place interest rates? Why isn't the margin borrowing space more competitive?
submitted by eopif to investing [link] [comments]

ELI5: Why is buying on margin forbidden under insider trading laws?

I understand the text of the law. A sale could happen, outside the stock owners control, outside of an open trading window.
However the stock owner does not control that sale. Sure, they could purposely lose money to the point of a margin call and hope the preferred stocks got picked for liquidation but ultimately that’s about like playing roulette. So if the stock owner doesn’t have a realistic means to subvert the system when buying on margin, what is the intent and purpose of the rule?
submitted by About100Ninjas to explainlikeimfive [link] [comments]

ELI5: Crypto trading with margins

I don't even know how to properly title my question, but I'm aware of crypto trading at a very, very surface level (extremely superficial understanding) and today I became aware of margin trading, in light of the OKEx 10x and 20x margin trading. Can somebody ELI5 what all this means?
submitted by IncestyBanjo to explainlikeimfive [link] [comments]

ELI5: How does 'buying on margin' in stock trading work?

submitted by naankhatai to explainlikeimfive [link] [comments]

WTF happened to this stock at 4 am? Institutional investor? I swing traded it and made huge gains on margin because the 9 different indicators I was looking at, across several different time charts, told me to hold overnight. Can someone ELI5 me that 4 am single-candle spike?

WTF happened to this stock at 4 am? Institutional investor? I swing traded it and made huge gains on margin because the 9 different indicators I was looking at, across several different time charts, told me to hold overnight. Can someone ELI5 me that 4 am single-candle spike? submitted by chillocrat to Daytrading [link] [comments]

Trading noob here - margin stop sell order ELI5

Hi guys, I've been trying to teach myself the basics of trading using investopedia and youtube (what could go wrong, right?).
I'm not trying to be the next Gordon Gekko and am just going to be playing with some pocket change.
So I made a margin market buy order for 0.01btc at $1025 just now, expecting the price to rise. However, to make sure I don't lose too much in case the price goes south I also placed a margin stop sell order for 0.01btc at $1010.
The margin stop sell order was executed immediately, even though the market price was stable at $1025 - so what happened here? I thought the market price had to drop below $1010 before the margin stop sell order would be placed. Am I misunderstanding how stop orders work, or something else?
Thanks for any help!
submitted by Hitchslappy to BitcoinMarkets [link] [comments]

ELI5 margin trading

Hi!
Any chance one of you guy can ELI5 margin trading?
My understanding is it is a way to get leverage, you gain can be 2x at the risk of being expose 2x lost. Is it correct?
submitted by Ant-n to moneromarkets [link] [comments]

ELI5: What's the deal with 'Margin Trading' and how did it cause BTC-E and Bitfinex to suffer a price crash?

submitted by Mikemanblah to Bitcoin [link] [comments]

Trading noob here - margin stop sell order ELI5 /r/BitcoinMarkets

Trading noob here - margin stop sell order ELI5 /BitcoinMarkets submitted by BitcoinAllBot to BitcoinAll [link] [comments]

ELI5: Maintenance Margin Requirements when trading stocks

Im completely new to stock trading and Im sure theres an ELI5 for everything else but i have not seen anyone address Maintenance Margin Requirements.
submitted by Mk3supraholic to explainlikeimfive [link] [comments]

ELI5: What is the difference between Margin Buying Power and Day Trade Buying Power (DTBP)?

When using an online broker to trade stocks and you have your margin account setup as a PDT (Pattern Day Trader), you are given three balances:
I haven't been able to totally wrap my head around what the difference is between your margin buying power and your day trade buying power.
submitted by jwriv4 to explainlikeimfive [link] [comments]

Why i’m bullish on Zilliqa (long read)

Edit: TL;DR added in the comments
 
Hey all, I've been researching coins since 2017 and have gone through 100s of them in the last 3 years. I got introduced to blockchain via Bitcoin of course, analyzed Ethereum thereafter and from that moment I have a keen interest in smart contact platforms. I’m passionate about Ethereum but I find Zilliqa to have a better risk-reward ratio. Especially because Zilliqa has found an elegant balance between being secure, decentralized and scalable in my opinion.
 
Below I post my analysis of why from all the coins I went through I’m most bullish on Zilliqa (yes I went through Tezos, EOS, NEO, VeChain, Harmony, Algorand, Cardano etc.). Note that this is not investment advice and although it's a thorough analysis there is obviously some bias involved. Looking forward to what you all think!
 
Fun fact: the name Zilliqa is a play on ‘silica’ silicon dioxide which means “Silicon for the high-throughput consensus computer.”
 
This post is divided into (i) Technology, (ii) Business & Partnerships, and (iii) Marketing & Community. I’ve tried to make the technology part readable for a broad audience. If you’ve ever tried understanding the inner workings of Bitcoin and Ethereum you should be able to grasp most parts. Otherwise, just skim through and once you are zoning out head to the next part.
 
Technology and some more:
 
Introduction
 
The technology is one of the main reasons why I’m so bullish on Zilliqa. First thing you see on their website is: “Zilliqa is a high-performance, high-security blockchain platform for enterprises and next-generation applications.” These are some bold statements.
 
Before we deep dive into the technology let’s take a step back in time first as they have quite the history. The initial research paper from which Zilliqa originated dates back to August 2016: Elastico: A Secure Sharding Protocol For Open Blockchains where Loi Luu (Kyber Network) is one of the co-authors. Other ideas that led to the development of what Zilliqa has become today are: Bitcoin-NG, collective signing CoSi, ByzCoin and Omniledger.
 
The technical white paper was made public in August 2017 and since then they have achieved everything stated in the white paper and also created their own open source intermediate level smart contract language called Scilla (functional programming language similar to OCaml) too.
 
Mainnet is live since the end of January 2019 with daily transaction rates growing continuously. About a week ago mainnet reached 5 million transactions, 500.000+ addresses in total along with 2400 nodes keeping the network decentralized and secure. Circulating supply is nearing 11 billion and currently only mining rewards are left. The maximum supply is 21 billion with annual inflation being 7.13% currently and will only decrease with time.
 
Zilliqa realized early on that the usage of public cryptocurrencies and smart contracts were increasing but decentralized, secure, and scalable alternatives were lacking in the crypto space. They proposed to apply sharding onto a public smart contract blockchain where the transaction rate increases almost linear with the increase in the amount of nodes. More nodes = higher transaction throughput and increased decentralization. Sharding comes in many forms and Zilliqa uses network-, transaction- and computational sharding. Network sharding opens up the possibility of using transaction- and computational sharding on top. Zilliqa does not use state sharding for now. We’ll come back to this later.
 
Before we continue dissecting how Zilliqa achieves such from a technological standpoint it’s good to keep in mind that a blockchain being decentralised and secure and scalable is still one of the main hurdles in allowing widespread usage of decentralised networks. In my opinion this needs to be solved first before blockchains can get to the point where they can create and add large scale value. So I invite you to read the next section to grasp the underlying fundamentals. Because after all these premises need to be true otherwise there isn’t a fundamental case to be bullish on Zilliqa, right?
 
Down the rabbit hole
 
How have they achieved this? Let’s define the basics first: key players on Zilliqa are the users and the miners. A user is anybody who uses the blockchain to transfer funds or run smart contracts. Miners are the (shard) nodes in the network who run the consensus protocol and get rewarded for their service in Zillings (ZIL). The mining network is divided into several smaller networks called shards, which is also referred to as ‘network sharding’. Miners subsequently are randomly assigned to a shard by another set of miners called DS (Directory Service) nodes. The regular shards process transactions and the outputs of these shards are eventually combined by the DS shard as they reach consensus on the final state. More on how these DS shards reach consensus (via pBFT) will be explained later on.
 
The Zilliqa network produces two types of blocks: DS blocks and Tx blocks. One DS Block consists of 100 Tx Blocks. And as previously mentioned there are two types of nodes concerned with reaching consensus: shard nodes and DS nodes. Becoming a shard node or DS node is being defined by the result of a PoW cycle (Ethash) at the beginning of the DS Block. All candidate mining nodes compete with each other and run the PoW (Proof-of-Work) cycle for 60 seconds and the submissions achieving the highest difficulty will be allowed on the network. And to put it in perspective: the average difficulty for one DS node is ~ 2 Th/s equaling 2.000.000 Mh/s or 55 thousand+ GeForce GTX 1070 / 8 GB GPUs at 35.4 Mh/s. Each DS Block 10 new DS nodes are allowed. And a shard node needs to provide around 8.53 GH/s currently (around 240 GTX 1070s). Dual mining ETH/ETC and ZIL is possible and can be done via mining software such as Phoenix and Claymore. There are pools and if you have large amounts of hashing power (Ethash) available you could mine solo.
 
The PoW cycle of 60 seconds is a peak performance and acts as an entry ticket to the network. The entry ticket is called a sybil resistance mechanism and makes it incredibly hard for adversaries to spawn lots of identities and manipulate the network with these identities. And after every 100 Tx Blocks which corresponds to roughly 1,5 hour this PoW process repeats. In between these 1,5 hour, no PoW needs to be done meaning Zilliqa’s energy consumption to keep the network secure is low. For more detailed information on how mining works click here.
Okay, hats off to you. You have made it this far. Before we go any deeper down the rabbit hole we first must understand why Zilliqa goes through all of the above technicalities and understand a bit more what a blockchain on a more fundamental level is. Because the core of Zilliqa’s consensus protocol relies on the usage of pBFT (practical Byzantine Fault Tolerance) we need to know more about state machines and their function. Navigate to Viewblock, a Zilliqa block explorer, and just come back to this article. We will use this site to navigate through a few concepts.
 
We have established that Zilliqa is a public and distributed blockchain. Meaning that everyone with an internet connection can send ZILs, trigger smart contracts, etc. and there is no central authority who fully controls the network. Zilliqa and other public and distributed blockchains (like Bitcoin and Ethereum) can also be defined as state machines.
 
Taking the liberty of paraphrasing examples and definitions given by Samuel Brooks’ medium article, he describes the definition of a blockchain (like Zilliqa) as: “A peer-to-peer, append-only datastore that uses consensus to synchronize cryptographically-secure data”.
 
Next, he states that: "blockchains are fundamentally systems for managing valid state transitions”. For some more context, I recommend reading the whole medium article to get a better grasp of the definitions and understanding of state machines. Nevertheless, let’s try to simplify and compile it into a single paragraph. Take traffic lights as an example: all its states (red, amber, and green) are predefined, all possible outcomes are known and it doesn’t matter if you encounter the traffic light today or tomorrow. It will still behave the same. Managing the states of a traffic light can be done by triggering a sensor on the road or pushing a button resulting in one traffic lights’ state going from green to red (via amber) and another light from red to green.
 
With public blockchains like Zilliqa, this isn’t so straightforward and simple. It started with block #1 almost 1,5 years ago and every 45 seconds or so a new block linked to the previous block is being added. Resulting in a chain of blocks with transactions in it that everyone can verify from block #1 to the current #647.000+ block. The state is ever changing and the states it can find itself in are infinite. And while the traffic light might work together in tandem with various other traffic lights, it’s rather insignificant comparing it to a public blockchain. Because Zilliqa consists of 2400 nodes who need to work together to achieve consensus on what the latest valid state is while some of these nodes may have latency or broadcast issues, drop offline or are deliberately trying to attack the network, etc.
 
Now go back to the Viewblock page take a look at the amount of transaction, addresses, block and DS height and then hit refresh. Obviously as expected you see new incremented values on one or all parameters. And how did the Zilliqa blockchain manage to transition from a previous valid state to the latest valid state? By using pBFT to reach consensus on the latest valid state.
 
After having obtained the entry ticket, miners execute pBFT to reach consensus on the ever-changing state of the blockchain. pBFT requires a series of network communication between nodes, and as such there is no GPU involved (but CPU). Resulting in the total energy consumed to keep the blockchain secure, decentralized and scalable being low.
 
pBFT stands for practical Byzantine Fault Tolerance and is an optimization on the Byzantine Fault Tolerant algorithm. To quote Blockonomi: “In the context of distributed systems, Byzantine Fault Tolerance is the ability of a distributed computer network to function as desired and correctly reach a sufficient consensus despite malicious components (nodes) of the system failing or propagating incorrect information to other peers.” Zilliqa is such a distributed computer network and depends on the honesty of the nodes (shard and DS) to reach consensus and to continuously update the state with the latest block. If pBFT is a new term for you I can highly recommend the Blockonomi article.
 
The idea of pBFT was introduced in 1999 - one of the authors even won a Turing award for it - and it is well researched and applied in various blockchains and distributed systems nowadays. If you want more advanced information than the Blockonomi link provides click here. And if you’re in between Blockonomi and the University of Singapore read the Zilliqa Design Story Part 2 dating from October 2017.
Quoting from the Zilliqa tech whitepaper: “pBFT relies upon a correct leader (which is randomly selected) to begin each phase and proceed when the sufficient majority exists. In case the leader is byzantine it can stall the entire consensus protocol. To address this challenge, pBFT offers a view change protocol to replace the byzantine leader with another one.”
 
pBFT can tolerate ⅓ of the nodes being dishonest (offline counts as Byzantine = dishonest) and the consensus protocol will function without stalling or hiccups. Once there are more than ⅓ of dishonest nodes but no more than ⅔ the network will be stalled and a view change will be triggered to elect a new DS leader. Only when more than ⅔ of the nodes are dishonest (66%) double-spend attacks become possible.
 
If the network stalls no transactions can be processed and one has to wait until a new honest leader has been elected. When the mainnet was just launched and in its early phases, view changes happened regularly. As of today the last stalling of the network - and view change being triggered - was at the end of October 2019.
 
Another benefit of using pBFT for consensus besides low energy is the immediate finality it provides. Once your transaction is included in a block and the block is added to the chain it’s done. Lastly, take a look at this article where three types of finality are being defined: probabilistic, absolute and economic finality. Zilliqa falls under the absolute finality (just like Tendermint for example). Although lengthy already we skipped through some of the inner workings from Zilliqa’s consensus: read the Zilliqa Design Story Part 3 and you will be close to having a complete picture on it. Enough about PoW, sybil resistance mechanism, pBFT, etc. Another thing we haven’t looked at yet is the amount of decentralization.
 
Decentralisation
 
Currently, there are four shards, each one of them consisting of 600 nodes. 1 shard with 600 so-called DS nodes (Directory Service - they need to achieve a higher difficulty than shard nodes) and 1800 shard nodes of which 250 are shard guards (centralized nodes controlled by the team). The amount of shard guards has been steadily declining from 1200 in January 2019 to 250 as of May 2020. On the Viewblock statistics, you can see that many of the nodes are being located in the US but those are only the (CPU parts of the) shard nodes who perform pBFT. There is no data from where the PoW sources are coming. And when the Zilliqa blockchain starts reaching its transaction capacity limit, a network upgrade needs to be executed to lift the current cap of maximum 2400 nodes to allow more nodes and formation of more shards which will allow to network to keep on scaling according to demand.
Besides shard nodes there are also seed nodes. The main role of seed nodes is to serve as direct access points (for end-users and clients) to the core Zilliqa network that validates transactions. Seed nodes consolidate transaction requests and forward these to the lookup nodes (another type of nodes) for distribution to the shards in the network. Seed nodes also maintain the entire transaction history and the global state of the blockchain which is needed to provide services such as block explorers. Seed nodes in the Zilliqa network are comparable to Infura on Ethereum.
 
The seed nodes were first only operated by Zilliqa themselves, exchanges and Viewblock. Operators of seed nodes like exchanges had no incentive to open them for the greater public. They were centralised at first. Decentralisation at the seed nodes level has been steadily rolled out since March 2020 ( Zilliqa Improvement Proposal 3 ). Currently the amount of seed nodes is being increased, they are public-facing and at the same time PoS is applied to incentivize seed node operators and make it possible for ZIL holders to stake and earn passive yields. Important distinction: seed nodes are not involved with consensus! That is still PoW as entry ticket and pBFT for the actual consensus.
 
5% of the block rewards are being assigned to seed nodes (from the beginning in 2019) and those are being used to pay out ZIL stakers. The 5% block rewards with an annual yield of 10.03% translate to roughly 610 MM ZILs in total that can be staked. Exchanges use the custodial variant of staking and wallets like Moonlet will use the non-custodial version (starting in Q3 2020). Staking is being done by sending ZILs to a smart contract created by Zilliqa and audited by Quantstamp.
 
With a high amount of DS; shard nodes and seed nodes becoming more decentralized too, Zilliqa qualifies for the label of decentralized in my opinion.
 
Smart contracts
 
Let me start by saying I’m not a developer and my programming skills are quite limited. So I‘m taking the ELI5 route (maybe 12) but if you are familiar with Javascript, Solidity or specifically OCaml please head straight to Scilla - read the docs to get a good initial grasp of how Zilliqa’s smart contract language Scilla works and if you ask yourself “why another programming language?” check this article. And if you want to play around with some sample contracts in an IDE click here. The faucet can be found here. And more information on architecture, dapp development and API can be found on the Developer Portal.
If you are more into listening and watching: check this recent webinar explaining Zilliqa and Scilla. Link is time-stamped so you’ll start right away with a platform introduction, roadmap 2020 and afterwards a proper Scilla introduction.
 
Generalized: programming languages can be divided into being ‘object-oriented’ or ‘functional’. Here is an ELI5 given by software development academy: * “all programs have two basic components, data – what the program knows – and behavior – what the program can do with that data. So object-oriented programming states that combining data and related behaviors in one place, is called “object”, which makes it easier to understand how a particular program works. On the other hand, functional programming argues that data and behavior are different things and should be separated to ensure their clarity.” *
 
Scilla is on the functional side and shares similarities with OCaml: OCaml is a general-purpose programming language with an emphasis on expressiveness and safety. It has an advanced type system that helps catch your mistakes without getting in your way. It's used in environments where a single mistake can cost millions and speed matters, is supported by an active community, and has a rich set of libraries and development tools. For all its power, OCaml is also pretty simple, which is one reason it's often used as a teaching language.
 
Scilla is blockchain agnostic, can be implemented onto other blockchains as well, is recognized by academics and won a so-called Distinguished Artifact Award award at the end of last year.
 
One of the reasons why the Zilliqa team decided to create their own programming language focused on preventing smart contract vulnerabilities is that adding logic on a blockchain, programming, means that you cannot afford to make mistakes. Otherwise, it could cost you. It’s all great and fun blockchains being immutable but updating your code because you found a bug isn’t the same as with a regular web application for example. And with smart contracts, it inherently involves cryptocurrencies in some form thus value.
 
Another difference with programming languages on a blockchain is gas. Every transaction you do on a smart contract platform like Zilliqa or Ethereum costs gas. With gas you basically pay for computational costs. Sending a ZIL from address A to address B costs 0.001 ZIL currently. Smart contracts are more complex, often involve various functions and require more gas (if gas is a new concept click here ).
 
So with Scilla, similar to Solidity, you need to make sure that “every function in your smart contract will run as expected without hitting gas limits. An improper resource analysis may lead to situations where funds may get stuck simply because a part of the smart contract code cannot be executed due to gas limits. Such constraints are not present in traditional software systems”. Scilla design story part 1
 
Some examples of smart contract issues you’d want to avoid are: leaking funds, ‘unexpected changes to critical state variables’ (example: someone other than you setting his or her address as the owner of the smart contract after creation) or simply killing a contract.
 
Scilla also allows for formal verification. Wikipedia to the rescue: In the context of hardware and software systems, formal verification is the act of proving or disproving the correctness of intended algorithms underlying a system with respect to a certain formal specification or property, using formal methods of mathematics.
 
Formal verification can be helpful in proving the correctness of systems such as: cryptographic protocols, combinational circuits, digital circuits with internal memory, and software expressed as source code.
 
Scilla is being developed hand-in-hand with formalization of its semantics and its embedding into the Coq proof assistant — a state-of-the art tool for mechanized proofs about properties of programs.”
 
Simply put, with Scilla and accompanying tooling developers can be mathematically sure and proof that the smart contract they’ve written does what he or she intends it to do.
 
Smart contract on a sharded environment and state sharding
 
There is one more topic I’d like to touch on: smart contract execution in a sharded environment (and what is the effect of state sharding). This is a complex topic. I’m not able to explain it any easier than what is posted here. But I will try to compress the post into something easy to digest.
 
Earlier on we have established that Zilliqa can process transactions in parallel due to network sharding. This is where the linear scalability comes from. We can define simple transactions: a transaction from address A to B (Category 1), a transaction where a user interacts with one smart contract (Category 2) and the most complex ones where triggering a transaction results in multiple smart contracts being involved (Category 3). The shards are able to process transactions on their own without interference of the other shards. With Category 1 transactions that is doable, with Category 2 transactions sometimes if that address is in the same shard as the smart contract but with Category 3 you definitely need communication between the shards. Solving that requires to make a set of communication rules the protocol needs to follow in order to process all transactions in a generalised fashion.
 
And this is where the downsides of state sharding comes in currently. All shards in Zilliqa have access to the complete state. Yes the state size (0.1 GB at the moment) grows and all of the nodes need to store it but it also means that they don’t need to shop around for information available on other shards. Requiring more communication and adding more complexity. Computer science knowledge and/or developer knowledge required links if you want to dig further: Scilla - language grammar Scilla - Foundations for Verifiable Decentralised Computations on a Blockchain Gas Accounting NUS x Zilliqa: Smart contract language workshop
 
Easier to follow links on programming Scilla https://learnscilla.com/home Ivan on Tech
 
Roadmap / Zilliqa 2.0
 
There is no strict defined roadmap but here are topics being worked on. And via the Zilliqa website there is also more information on the projects they are working on.
 
Business & Partnerships
 
It’s not only technology in which Zilliqa seems to be excelling as their ecosystem has been expanding and starting to grow rapidly. The project is on a mission to provide OpenFinance (OpFi) to the world and Singapore is the right place to be due to its progressive regulations and futuristic thinking. Singapore has taken a proactive approach towards cryptocurrencies by introducing the Payment Services Act 2019 (PS Act). Among other things, the PS Act will regulate intermediaries dealing with certain cryptocurrencies, with a particular focus on consumer protection and anti-money laundering. It will also provide a stable regulatory licensing and operating framework for cryptocurrency entities, effectively covering all crypto businesses and exchanges based in Singapore. According to PWC 82% of the surveyed executives in Singapore reported blockchain initiatives underway and 13% of them have already brought the initiatives live to the market. There is also an increasing list of organizations that are starting to provide digital payment services. Moreover, Singaporean blockchain developers Building Cities Beyond has recently created an innovation $15 million grant to encourage development on its ecosystem. This all suggests that Singapore tries to position itself as (one of) the leading blockchain hubs in the world.
 
Zilliqa seems to already take advantage of this and recently helped launch Hg Exchange on their platform, together with financial institutions PhillipCapital, PrimePartners and Fundnel. Hg Exchange, which is now approved by the Monetary Authority of Singapore (MAS), uses smart contracts to represent digital assets. Through Hg Exchange financial institutions worldwide can use Zilliqa's safe-by-design smart contracts to enable the trading of private equities. For example, think of companies such as Grab, Airbnb, SpaceX that are not available for public trading right now. Hg Exchange will allow investors to buy shares of private companies & unicorns and capture their value before an IPO. Anquan, the main company behind Zilliqa, has also recently announced that they became a partner and shareholder in TEN31 Bank, which is a fully regulated bank allowing for tokenization of assets and is aiming to bridge the gap between conventional banking and the blockchain world. If STOs, the tokenization of assets, and equity trading will continue to increase, then Zilliqa’s public blockchain would be the ideal candidate due to its strategic positioning, partnerships, regulatory compliance and the technology that is being built on top of it.
 
What is also very encouraging is their focus on banking the un(der)banked. They are launching a stablecoin basket starting with XSGD. As many of you know, stablecoins are currently mostly used for trading. However, Zilliqa is actively trying to broaden the use case of stablecoins. I recommend everybody to read this text that Amrit Kumar wrote (one of the co-founders). These stablecoins will be integrated in the traditional markets and bridge the gap between the crypto world and the traditional world. This could potentially revolutionize and legitimise the crypto space if retailers and companies will for example start to use stablecoins for payments or remittances, instead of it solely being used for trading.
 
Zilliqa also released their DeFi strategic roadmap (dating November 2019) which seems to be aligning well with their OpFi strategy. A non-custodial DEX is coming to Zilliqa made by Switcheo which allows cross-chain trading (atomic swaps) between ETH, EOS and ZIL based tokens. They also signed a Memorandum of Understanding for a (soon to be announced) USD stablecoin. And as Zilliqa is all about regulations and being compliant, I’m speculating on it to be a regulated USD stablecoin. Furthermore, XSGD is already created and visible on block explorer and XIDR (Indonesian Stablecoin) is also coming soon via StraitsX. Here also an overview of the Tech Stack for Financial Applications from September 2019. Further quoting Amrit Kumar on this:
 
There are two basic building blocks in DeFi/OpFi though: 1) stablecoins as you need a non-volatile currency to get access to this market and 2) a dex to be able to trade all these financial assets. The rest are built on top of these blocks.
 
So far, together with our partners and community, we have worked on developing these building blocks with XSGD as a stablecoin. We are working on bringing a USD-backed stablecoin as well. We will soon have a decentralised exchange developed by Switcheo. And with HGX going live, we are also venturing into the tokenization space. More to come in the future.”
 
Additionally, they also have this ZILHive initiative that injects capital into projects. There have been already 6 waves of various teams working on infrastructure, innovation and research, and they are not from ASEAN or Singapore only but global: see Grantees breakdown by country. Over 60 project teams from over 20 countries have contributed to Zilliqa's ecosystem. This includes individuals and teams developing wallets, explorers, developer toolkits, smart contract testing frameworks, dapps, etc. As some of you may know, Unstoppable Domains (UD) blew up when they launched on Zilliqa. UD aims to replace cryptocurrency addresses with a human-readable name and allows for uncensorable websites. Zilliqa will probably be the only one able to handle all these transactions onchain due to ability to scale and its resulting low fees which is why the UD team launched this on Zilliqa in the first place. Furthermore, Zilliqa also has a strong emphasis on security, compliance, and privacy, which is why they partnered with companies like Elliptic, ChainSecurity (part of PwC Switzerland), and Incognito. Their sister company Aqilliz (Zilliqa spelled backwards) focuses on revolutionizing the digital advertising space and is doing interesting things like using Zilliqa to track outdoor digital ads with companies like Foodpanda.
 
Zilliqa is listed on nearly all major exchanges, having several different fiat-gateways and recently have been added to Binance’s margin trading and futures trading with really good volume. They also have a very impressive team with good credentials and experience. They don't just have “tech people”. They have a mix of tech people, business people, marketeers, scientists, and more. Naturally, it's good to have a mix of people with different skill sets if you work in the crypto space.
 
Marketing & Community
 
Zilliqa has a very strong community. If you just follow their Twitter their engagement is much higher for a coin that has approximately 80k followers. They also have been ‘coin of the day’ by LunarCrush many times. LunarCrush tracks real-time cryptocurrency value and social data. According to their data, it seems Zilliqa has a more fundamental and deeper understanding of marketing and community engagement than almost all other coins. While almost all coins have been a bit frozen in the last months, Zilliqa seems to be on its own bull run. It was somewhere in the 100s a few months ago and is currently ranked #46 on CoinGecko. Their official Telegram also has over 20k people and is very active, and their community channel which is over 7k now is more active and larger than many other official channels. Their local communities also seem to be growing.
 
Moreover, their community started ‘Zillacracy’ together with the Zilliqa core team ( see www.zillacracy.com ). It’s a community-run initiative where people from all over the world are now helping with marketing and development on Zilliqa. Since its launch in February 2020 they have been doing a lot and will also run their own non-custodial seed node for staking. This seed node will also allow them to start generating revenue for them to become a self sustaining entity that could potentially scale up to become a decentralized company working in parallel with the Zilliqa core team. Comparing it to all the other smart contract platforms (e.g. Cardano, EOS, Tezos etc.) they don't seem to have started a similar initiative (correct me if I’m wrong though). This suggests in my opinion that these other smart contract platforms do not fully understand how to utilize the ‘power of the community’. This is something you cannot ‘buy with money’ and gives many projects in the space a disadvantage.
 
Zilliqa also released two social products called SocialPay and Zeeves. SocialPay allows users to earn ZILs while tweeting with a specific hashtag. They have recently used it in partnership with the Singapore Red Cross for a marketing campaign after their initial pilot program. It seems like a very valuable social product with a good use case. I can see a lot of traditional companies entering the space through this product, which they seem to suggest will happen. Tokenizing hashtags with smart contracts to get network effect is a very smart and innovative idea.
 
Regarding Zeeves, this is a tipping bot for Telegram. They already have 1000s of signups and they plan to keep upgrading it for more and more people to use it (e.g. they recently have added a quiz features). They also use it during AMAs to reward people in real-time. It’s a very smart approach to grow their communities and get familiar with ZIL. I can see this becoming very big on Telegram. This tool suggests, again, that the Zilliqa team has a deeper understanding of what the crypto space and community needs and is good at finding the right innovative tools to grow and scale.
 
To be honest, I haven’t covered everything (i’m also reaching the character limited haha). So many updates happening lately that it's hard to keep up, such as the International Monetary Fund mentioning Zilliqa in their report, custodial and non-custodial Staking, Binance Margin, Futures, Widget, entering the Indian market, and more. The Head of Marketing Colin Miles has also released this as an overview of what is coming next. And last but not least, Vitalik Buterin has been mentioning Zilliqa lately acknowledging Zilliqa and mentioning that both projects have a lot of room to grow. There is much more info of course and a good part of it has been served to you on a silver platter. I invite you to continue researching by yourself :-) And if you have any comments or questions please post here!
submitted by haveyouheardaboutit to CryptoCurrency [link] [comments]

Overall GAMSAT Score Improvement by 15 - Journey from 64 to 79

Overall GAMSAT Score Improvement by 15 - Journey from 64 to 79
I wanted to make a guide regarding my overall journey to improving GAMSAT, as numerous friends have reached out for advice, tutored many people that ended up getting 70+ in GAMSAT, and feel that many of you could also benefit from it. Although I had sat the GAMSAT 4 times and scored the ‘elusive’ 70+ three times, I felt more confident with every successive sitting as there was always an area that I had improved on.
Background
For context when I first sat the GAMSAT, my background involved a tertiary degree in Mathematics, I had done well in Year 12 Chemistry and Physics, knew nothing regarding tertiary sciences (Ochem, Biochem, Bio, Physiology), and I was a terrible writer and hated english. I was also working and studying full time in all of my GAMSAT preparations.
Before someone asks why I sat the GAMSAT this many times despite seemingly scoring so highly, I had taken a job offer (in quantitative trading) that I could not refuse after my first two attempts. However now that this is behind me, I sat the GAMSAT twice recently in hopes of landing a medical school in Sydney. Below are my respective mark breakdowns.
2017 Sep 54/61/70 - Overall 64
2018 Mar 60/71/80 - Overall 72
2019 Sep 62/69/75 - Overall 70
2020 Mar 65/71/90 - Overall 79
Ultimately I had improved my marks by 11 in Section 1, 10 in Section 2, and 20 in Section 3. As a disclaimer, the strategies mentioned are what has worked for me so please adapt them to your own strengths and weaknesses.
Optimisation
A research paper was published regarding the statistics of GAMSAT sections between 2005 - 2014. Across the respective years as a ballpark, the data is summarised as:
Overall GAMSAT had a mean of 57 and a standard deviation of 7
Section 1 had a mean of 57 and a standard deviation of 7
Section 2 had a mean of 58 and a standard deviation of 9
Section 3 had a mean of 56 and a standard deviation of 11
So what does this mean? If we reference a bell curve, the more standard deviations over the mean you are, the harder it is to achieve that respective score statistically. This provides us a simple framework in order to excel the GAMSAT. I should probably add that you should aim to improve your core underlying skills (comprehension, writing, logical reasoning) as opposed to trying to game the test by learning the questions. These skills will not only carry you forward in life, but allows you to adapt to the myriad of questions GAMSAT throws at you.
Firstly, work on areas that you feel that you are below average in compared to other people until you hit a wall, as most universities require a minimum of 50+ in all sections. Furthermore this is also high yield as most people are bunched together near the mean, and it only requires a few marks of separation to really boost your marks.
Secondly, double down on areas that you are naturally gifted in as realistically that is the area where you can expect to see the most room for improvement. The reason why you double down on your strengths and not your weaknesses, is due to the concept of marginal cost. In the time it takes you to improve 5 points in your weaknesses, it will take a far shorter time to do so in your strengths.
For me personally, one of my key weaknesses was in comprehension and writing. Whilst I did not have a concrete method in improving Section 1, I recognised weaknesses in vocabulary, understanding the main idea of passages, and reading quickly. I recognised that Section 2 was a function of how well I could write and communicate my points across, so I improved purely by writing a lot and trying to argue points from various angles - to be a better runner, you simply need to run more. I knew I was great at logical reasoning and so theoretically Section 3 should be my greatest strength, and so I doubled down in learning content and practicing questions.
Section 1
Frankly, this is probably the hardest section to improve as it involves many different skills that are difficult to apply purposeful practice on. I felt the highest yield things that you could do for this section aside doing comprehension questions is simply to practice Section 2 and also build up your vocabulary base. One particular method is to look at the MCAT Vocabulary list.
Section 2
I hated writing with a passion. I was ranked top 10% counting backwards in my high school English cohort. It took me 6 hours of sitting there preparing to write before I mustered the courage to write something at 1am. If I can improve writing to 70+, so can you.
One important but obvious concept is the notion that to get better at writing, one must simply write more - just like how if you wanted to run further, you must simply run more. There was a research study done where an art class was broken up into two cohorts (A/B tested), where one was told to produce just one excellent work and the other was told that they can create as many as they liked. Intuitively it would seem that focusing all your energy onto one work in the same timeframe would lead to a better piece, but that was not the case. The act of repetition allows students to experiment more and learn from mistakes, akin to the notion of failing quickly in the start-up world. This concept can be similarly applied to writing by mass writing, or in english what you call power writing, thesis statements on a myriad of different topics.
A better awareness of the world is also extremely high yield for Section 2. The conventional wisdom is to simply read the news, but I believe that is not the most efficient approach. Essay questions are typically centred around concepts of Politics, Psychology, and Philosophy or Ethics. A good approach is objectively listening to the arguments made on competing sides of contentious issues such as how to fairly allocate resources. It will also strengthen your argument if you are able to mention tangible examples or draw upon experiences in your own personal life.
Most people recommend books such as AC Grayling’s The Meaning of Things and it is certainly a decent place to start. I personally prefer to look into areas where there are huge debates around as that in itself is teaching you how to argue your point across both succinctly and logically. Some people I have listened to include Crowder’s Prove Me Wrong (on Youtube) or any of Ben Shapiro’s lectures at universities (on Youtube). The point here is to learn from the manner in which they convey their points, rather than writing a biased essay. I think you should still keep your essay unbiased or rooted in your own personal experiences.
Section 3
The pitfall that people often fall into, is the belief that simply reading more theory will automatically improve one’s Section 3 score. To be honest, I knew nothing regarding Biochemistry, Biology and Physiology until my most recent attempt and I still managed to beat out plenty of students that had spent 4 years studying Sciences. The key thing to grasp here is to hone in on learning concepts and your problem solving skills.
Section 3 tests how well you know your concepts as it tests how well you can apply them in a variety of different contexts. Whilst theory is certainly useful, they will not for instance make you regurgitate the names of every constituent of the Citric Cycle, but instead test you on the fact that it is a slow aerobic oxidation process that converts glucose into energy (ATP). It may also test you on various conceptual things that may occur within the cycle such as what part of this reaction process is a reduction or an isomerism reaction. A good rule of thumb of how much you will need to know is to be able to ELI5 (Explain it like I am 5) to a friend as that will prevent you going too overboard with theory. This is an application of Feynman Technique of learning by teaching, and it played a significant role in me going from a 70 to a 90 in Section 3.
Another area that is important to focus on is scientific skills such as calculations, interpreting graphs and quick mathematics. I would say that most of the skill based sections are in Physics, General Chemistry and Organic Chemistry so please take the time to thoroughly go through them in depth. Don’t simply read, but apply active learning by doing the calculation or graphical questions. What is underrated is your ability to do quick calculations so make sure you practice basic arithmetic, logarithms, exponentials and so on. Also learn how to read a matrix.
Conclusion
I hope that what I have written is of use to those planning to sit or re-sit the GAMSAT. The GAMSAT is a gruelling exam and it is best to set a good study schedule preferably with a friend. It is important to not get disheartened, and to focus on the skills that GAMSAT is testing and not simply going through the motions of doing questions. A great analogy would be that I could try to do as many trigonometry questions as I could, but at the end of the day if I did not understand what sine, cosine, and tangent were, then I would not be able to adapt to different questions.
Feel free to reach out to me if you have any questions in private, and I will help you to the best of my abilities. Furthermore if you would like me to address other areas and perhaps write a post about it, please leave a comment below.
submitted by chriswugan to GAMSAT [link] [comments]

Why i’m bullish on Zilliqa (long read)

Hey all, I've been researching coins since 2017 and have gone through 100s of them in the last 3 years. I got introduced to blockchain via Bitcoin of course, analysed Ethereum thereafter and from that moment I have a keen interest in smart contact platforms. I’m passionate about Ethereum but I find Zilliqa to have a better risk reward ratio. Especially because Zilliqa has found an elegant balance between being secure, decentralised and scalable in my opinion.
 
Below I post my analysis why from all the coins I went through I’m most bullish on Zilliqa (yes I went through Tezos, EOS, NEO, VeChain, Harmony, Algorand, Cardano etc.). Note that this is not investment advice and although it's a thorough analysis there is obviously some bias involved. Looking forward to what you all think!
 
Fun fact: the name Zilliqa is a play on ‘silica’ silicon dioxide which means “Silicon for the high-throughput consensus computer.”
 
This post is divided into (i) Technology, (ii) Business & Partnerships, and (iii) Marketing & Community. I’ve tried to make the technology part readable for a broad audience. If you’ve ever tried understanding the inner workings of Bitcoin and Ethereum you should be able to grasp most parts. Otherwise just skim through and once you are zoning out head to the next part.
 
Technology and some more:
 
Introduction The technology is one of the main reasons why I’m so bullish on Zilliqa. First thing you see on their website is: “Zilliqa is a high-performance, high-security blockchain platform for enterprises and next-generation applications.” These are some bold statements.
 
Before we deep dive into the technology let’s take a step back in time first as they have quite the history. The initial research paper from which Zilliqa originated dates back to August 2016: Elastico: A Secure Sharding Protocol For Open Blockchains where Loi Luu (Kyber Network) is one of the co-authors. Other ideas that led to the development of what Zilliqa has become today are: Bitcoin-NG, collective signing CoSi, ByzCoin and Omniledger.
 
The technical white paper was made public in August 2017 and since then they have achieved everything stated in the white paper and also created their own open source intermediate level smart contract language called Scilla (functional programming language similar to OCaml) too.
 
Mainnet is live since end of January 2019 with daily transaction rate growing continuously. About a week ago mainnet reached 5 million transactions, 500.000+ addresses in total along with 2400 nodes keeping the network decentralised and secure. Circulating supply is nearing 11 billion and currently only mining rewards are left. Maximum supply is 21 billion with annual inflation being 7.13% currently and will only decrease with time.
 
Zilliqa realised early on that the usage of public cryptocurrencies and smart contracts were increasing but decentralised, secure and scalable alternatives were lacking in the crypto space. They proposed to apply sharding onto a public smart contract blockchain where the transaction rate increases almost linear with the increase in amount of nodes. More nodes = higher transaction throughput and increased decentralisation. Sharding comes in many forms and Zilliqa uses network-, transaction- and computational sharding. Network sharding opens up the possibility of using transaction- and computational sharding on top. Zilliqa does not use state sharding for now. We’ll come back to this later.
 
Before we continue disecting how Zilliqa achieves such from a technological standpoint it’s good to keep in mind that a blockchain being decentralised and secure and scalable is still one of the main hurdles in allowing widespread usage of decentralised networks. In my opinion this needs to be solved first before blockchains can get to the point where they can create and add large scale value. So I invite you to read the next section to grasp the underlying fundamentals. Because after all these premises need to be true otherwise there isn’t a fundamental case to be bullish on Zilliqa, right?
 
Down the rabbit hole
 
How have they achieved this? Let’s define the basics first: key players on Zilliqa are the users and the miners. A user is anybody who uses the blockchain to transfer funds or run smart contracts. Miners are the (shard) nodes in the network who run the consensus protocol and get rewarded for their service in Zillings (ZIL). The mining network is divided into several smaller networks called shards, which is also referred to as ‘network sharding’. Miners subsequently are randomly assigned to a shard by another set of miners called DS (Directory Service) nodes. The regular shards process transactions and the outputs of these shards are eventually combined by the DS shard as they reach consensus on the final state. More on how these DS shards reach consensus (via pBFT) will be explained later on.
 
The Zilliqa network produces two types of blocks: DS blocks and Tx blocks. One DS Block consists of 100 Tx Blocks. And as previously mentioned there are two types of nodes concerned with reaching consensus: shard nodes and DS nodes. Becoming a shard node or DS node is being defined by the result of a PoW cycle (Ethash) at the beginning of the DS Block. All candidate mining nodes compete with each other and run the PoW (Proof-of-Work) cycle for 60 seconds and the submissions achieving the highest difficulty will be allowed on the network. And to put it in perspective: the average difficulty for one DS node is ~ 2 Th/s equaling 2.000.000 Mh/s or 55 thousand+ GeForce GTX 1070 / 8 GB GPUs at 35.4 Mh/s. Each DS Block 10 new DS nodes are allowed. And a shard node needs to provide around 8.53 GH/s currently (around 240 GTX 1070s). Dual mining ETH/ETC and ZIL is possible and can be done via mining software such as Phoenix and Claymore. There are pools and if you have large amounts of hashing power (Ethash) available you could mine solo.
 
The PoW cycle of 60 seconds is a peak performance and acts as an entry ticket to the network. The entry ticket is called a sybil resistance mechanism and makes it incredibly hard for adversaries to spawn lots of identities and manipulate the network with these identities. And after every 100 Tx Blocks which corresponds to roughly 1,5 hour this PoW process repeats. In between these 1,5 hour no PoW needs to be done meaning Zilliqa’s energy consumption to keep the network secure is low. For more detailed information on how mining works click here.
Okay, hats off to you. You have made it this far. Before we go any deeper down the rabbit hole we first must understand why Zilliqa goes through all of the above technicalities and understand a bit more what a blockchain on a more fundamental level is. Because the core of Zilliqa’s consensus protocol relies on the usage of pBFT (practical Byzantine Fault Tolerance) we need to know more about state machines and their function. Navigate to Viewblock, a Zilliqa block explorer, and just come back to this article. We will use this site to navigate through a few concepts.
 
We have established that Zilliqa is a public and distributed blockchain. Meaning that everyone with an internet connection can send ZILs, trigger smart contracts etc. and there is no central authority who fully controls the network. Zilliqa and other public and distributed blockchains (like Bitcoin and Ethereum) can also be defined as state machines.
 
Taking the liberty of paraphrasing examples and definitions given by Samuel Brooks’ medium article, he describes the definition of a blockchain (like Zilliqa) as:
“A peer-to-peer, append-only datastore that uses consensus to synchronise cryptographically-secure data”.
 
Next he states that: >“blockchains are fundamentally systems for managing valid state transitions”.* For some more context, I recommend reading the whole medium article to get a better grasp of the definitions and understanding of state machines. Nevertheless, let’s try to simplify and compile it into a single paragraph. Take traffic lights as an example: all its states (red, amber and green) are predefined, all possible outcomes are known and it doesn’t matter if you encounter the traffic light today or tomorrow. It will still behave the same. Managing the states of a traffic light can be done by triggering a sensor on the road or pushing a button resulting in one traffic lights’ state going from green to red (via amber) and another light from red to green.
 
With public blockchains like Zilliqa this isn’t so straightforward and simple. It started with block #1 almost 1,5 years ago and every 45 seconds or so a new block linked to the previous block is being added. Resulting in a chain of blocks with transactions in it that everyone can verify from block #1 to the current #647.000+ block. The state is ever changing and the states it can find itself in are infinite. And while the traffic light might work together in tandem with various other traffic lights, it’s rather insignificant comparing it to a public blockchain. Because Zilliqa consists of 2400 nodes who need to work together to achieve consensus on what the latest valid state is while some of these nodes may have latency or broadcast issues, drop offline or are deliberately trying to attack the network etc.
 
Now go back to the Viewblock page take a look at the amount of transaction, addresses, block and DS height and then hit refresh. Obviously as expected you see new incremented values on one or all parameters. And how did the Zilliqa blockchain manage to transition from a previous valid state to the latest valid state? By using pBFT to reach consensus on the latest valid state.
 
After having obtained the entry ticket, miners execute pBFT to reach consensus on the ever changing state of the blockchain. pBFT requires a series of network communication between nodes, and as such there is no GPU involved (but CPU). Resulting in the total energy consumed to keep the blockchain secure, decentralised and scalable being low.
 
pBFT stands for practical Byzantine Fault Tolerance and is an optimisation on the Byzantine Fault Tolerant algorithm. To quote Blockonomi: “In the context of distributed systems, Byzantine Fault Tolerance is the ability of a distributed computer network to function as desired and correctly reach a sufficient consensus despite malicious components (nodes) of the system failing or propagating incorrect information to other peers.” Zilliqa is such a distributed computer network and depends on the honesty of the nodes (shard and DS) to reach consensus and to continuously update the state with the latest block. If pBFT is a new term for you I can highly recommend the Blockonomi article.
 
The idea of pBFT was introduced in 1999 - one of the authors even won a Turing award for it - and it is well researched and applied in various blockchains and distributed systems nowadays. If you want more advanced information than the Blockonomi link provides click here. And if you’re in between Blockonomi and University of Singapore read the Zilliqa Design Story Part 2 dating from October 2017.
Quoting from the Zilliqa tech whitepaper: “pBFT relies upon a correct leader (which is randomly selected) to begin each phase and proceed when the sufficient majority exists. In case the leader is byzantine it can stall the entire consensus protocol. To address this challenge, pBFT offers a view change protocol to replace the byzantine leader with another one.”
 
pBFT can tolerate ⅓ of the nodes being dishonest (offline counts as Byzantine = dishonest) and the consensus protocol will function without stalling or hiccups. Once there are more than ⅓ of dishonest nodes but no more than ⅔ the network will be stalled and a view change will be triggered to elect a new DS leader. Only when more than ⅔ of the nodes are dishonest (>66%) double spend attacks become possible.
 
If the network stalls no transactions can be processed and one has to wait until a new honest leader has been elected. When the mainnet was just launched and in its early phases, view changes happened regularly. As of today the last stalling of the network - and view change being triggered - was at the end of October 2019.
 
Another benefit of using pBFT for consensus besides low energy is the immediate finality it provides. Once your transaction is included in a block and the block is added to the chain it’s done. Lastly, take a look at this article where three types of finality are being defined: probabilistic, absolute and economic finality. Zilliqa falls under the absolute finality (just like Tendermint for example). Although lengthy already we skipped through some of the inner workings from Zilliqa’s consensus: read the Zilliqa Design Story Part 3 and you will be close to having a complete picture on it. Enough about PoW, sybil resistance mechanism, pBFT etc. Another thing we haven’t looked at yet is the amount of decentralisation.
 
Decentralisation
 
Currently there are four shards, each one of them consisting of 600 nodes. 1 shard with 600 so called DS nodes (Directory Service - they need to achieve a higher difficulty than shard nodes) and 1800 shard nodes of which 250 are shard guards (centralised nodes controlled by the team). The amount of shard guards has been steadily declining from 1200 in January 2019 to 250 as of May 2020. On the Viewblock statistics you can see that many of the nodes are being located in the US but those are only the (CPU parts of the) shard nodes who perform pBFT. There is no data from where the PoW sources are coming. And when the Zilliqa blockchain starts reaching their transaction capacity limit, a network upgrade needs to be executed to lift the current cap of maximum 2400 nodes to allow more nodes and formation of more shards which will allow to network to keep on scaling according to demand.
Besides shard nodes there are also seed nodes. The main role of seed nodes is to serve as direct access points (for end users and clients) to the core Zilliqa network that validates transactions. Seed nodes consolidate transaction requests and forward these to the lookup nodes (another type of nodes) for distribution to the shards in the network. Seed nodes also maintain the entire transaction history and the global state of the blockchain which is needed to provide services such as block explorers. Seed nodes in the Zilliqa network are comparable to Infura on Ethereum.
 
The seed nodes were first only operated by Zilliqa themselves, exchanges and Viewblock. Operators of seed nodes like exchanges had no incentive to open them for the greater public.They were centralised at first. Decentralisation at the seed nodes level has been steadily rolled out since March 2020 ( Zilliqa Improvement Proposal 3 ). Currently the amount of seed nodes is being increased, they are public facing and at the same time PoS is applied to incentivize seed node operators and make it possible for ZIL holders to stake and earn passive yields. Important distinction: seed nodes are not involved with consensus! That is still PoW as entry ticket and pBFT for the actual consensus.
 
5% of the block rewards are being assigned to seed nodes (from the beginning in 2019) and those are being used to pay out ZIL stakers.The 5% block rewards with an annual yield of 10.03% translates to roughly 610 MM ZILs in total that can be staked. Exchanges use the custodial variant of staking and wallets like Moonlet will use the non custodial version (starting in Q3 2020). Staking is being done by sending ZILs to a smart contract created by Zilliqa and audited by Quantstamp.
 
With a high amount of DS & shard nodes and seed nodes becoming more decentralised too, Zilliqa qualifies for the label of decentralised in my opinion.
 
Smart contracts
 
Let me start by saying I’m not a developer and my programming skills are quite limited. So I‘m taking the ELI5 route (maybe 12) but if you are familiar with Javascript, Solidity or specifically OCaml please head straight to Scilla - read the docs to get a good initial grasp of how Zilliqa’s smart contract language Scilla works and if you ask yourself “why another programming language?” check this article. And if you want to play around with some sample contracts in an IDE click here. Faucet can be found here. And more information on architecture, dapp development and API can be found on the Developer Portal.
If you are more into listening and watching: check this recent webinar explaining Zilliqa and Scilla. Link is time stamped so you’ll start right away with a platform introduction, R&D roadmap 2020 and afterwards a proper Scilla introduction.
 
Generalised: programming languages can be divided into being ‘object oriented’ or ‘functional’. Here is an ELI5 given by software development academy: > “all programmes have two basic components, data – what the programme knows – and behaviour – what the programme can do with that data. So object-oriented programming states that combining data and related behaviours in one place, is called “object”, which makes it easier to understand how a particular program works. On the other hand, functional programming argues that data and behaviour are different things and should be separated to ensure their clarity.”
 
Scilla is on the functional side and shares similarities with OCaml: > OCaml is a general purpose programming language with an emphasis on expressiveness and safety. It has an advanced type system that helps catch your mistakes without getting in your way. It's used in environments where a single mistake can cost millions and speed matters, is supported by an active community, and has a rich set of libraries and development tools. For all its power, OCaml is also pretty simple, which is one reason it's often used as a teaching language.
 
Scilla is blockchain agnostic, can be implemented onto other blockchains as well, is recognised by academics and won a so called Distinguished Artifact Award award at the end of last year.
 
One of the reasons why the Zilliqa team decided to create their own programming language focused on preventing smart contract vulnerabilities safety is that adding logic on a blockchain, programming, means that you cannot afford to make mistakes. Otherwise it could cost you. It’s all great and fun blockchains being immutable but updating your code because you found a bug isn’t the same as with a regular web application for example. And with smart contracts it inherently involves cryptocurrencies in some form thus value.
 
Another difference with programming languages on a blockchain is gas. Every transaction you do on a smart contract platform like Zilliqa for Ethereum costs gas. With gas you basically pay for computational costs. Sending a ZIL from address A to address B costs 0.001 ZIL currently. Smart contracts are more complex, often involve various functions and require more gas (if gas is a new concept click here ).
 
So with Scilla, similar to Solidity, you need to make sure that “every function in your smart contract will run as expected without hitting gas limits. An improper resource analysis may lead to situations where funds may get stuck simply because a part of the smart contract code cannot be executed due to gas limits. Such constraints are not present in traditional software systems”. Scilla design story part 1
 
Some examples of smart contract issues you’d want to avoid are: leaking funds, ‘unexpected changes to critical state variables’ (example: someone other than you setting his or her address as the owner of the smart contract after creation) or simply killing a contract.
 
Scilla also allows for formal verification. Wikipedia to the rescue:
In the context of hardware and software systems, formal verification is the act of proving or disproving the correctness of intended algorithms underlying a system with respect to a certain formal specification or property, using formal methods of mathematics.
 
Formal verification can be helpful in proving the correctness of systems such as: cryptographic protocols, combinational circuits, digital circuits with internal memory, and software expressed as source code.
 
Scilla is being developed hand-in-hand with formalization of its semantics and its embedding into the Coq proof assistant — a state-of-the art tool for mechanized proofs about properties of programs.”
 
Simply put, with Scilla and accompanying tooling developers can be mathematically sure and proof that the smart contract they’ve written does what he or she intends it to do.
 
Smart contract on a sharded environment and state sharding
 
There is one more topic I’d like to touch on: smart contract execution in a sharded environment (and what is the effect of state sharding). This is a complex topic. I’m not able to explain it any easier than what is posted here. But I will try to compress the post into something easy to digest.
 
Earlier on we have established that Zilliqa can process transactions in parallel due to network sharding. This is where the linear scalability comes from. We can define simple transactions: a transaction from address A to B (Category 1), a transaction where a user interacts with one smart contract (Category 2) and the most complex ones where triggering a transaction results in multiple smart contracts being involved (Category 3). The shards are able to process transactions on their own without interference of the other shards. With Category 1 transactions that is doable, with Category 2 transactions sometimes if that address is in the same shard as the smart contract but with Category 3 you definitely need communication between the shards. Solving that requires to make a set of communication rules the protocol needs to follow in order to process all transactions in a generalised fashion.
 
And this is where the downsides of state sharding comes in currently. All shards in Zilliqa have access to the complete state. Yes the state size (0.1 GB at the moment) grows and all of the nodes need to store it but it also means that they don’t need to shop around for information available on other shards. Requiring more communication and adding more complexity. Computer science knowledge and/or developer knowledge required links if you want to dig further: Scilla - language grammar Scilla - Foundations for Verifiable Decentralised Computations on a Blockchain Gas Accounting NUS x Zilliqa: Smart contract language workshop
 
Easier to follow links on programming Scilla https://learnscilla.com/home Ivan on Tech
 
Roadmap / Zilliqa 2.0
 
There is no strict defined roadmap but here are topics being worked on. And via the Zilliqa website there is also more information on the projects they are working on.
 
Business & Partnerships  
It’s not only technology in which Zilliqa seems to be excelling as their ecosystem has been expanding and starting to grow rapidly. The project is on a mission to provide OpenFinance (OpFi) to the world and Singapore is the right place to be due to its progressive regulations and futuristic thinking. Singapore has taken a proactive approach towards cryptocurrencies by introducing the Payment Services Act 2019 (PS Act). Among other things, the PS Act will regulate intermediaries dealing with certain cryptocurrencies, with a particular focus on consumer protection and anti-money laundering. It will also provide a stable regulatory licensing and operating framework for cryptocurrency entities, effectively covering all crypto businesses and exchanges based in Singapore. According to PWC 82% of the surveyed executives in Singapore reported blockchain initiatives underway and 13% of them have already brought the initiatives live to the market. There is also an increasing list of organisations that are starting to provide digital payment services. Moreover, Singaporean blockchain developers Building Cities Beyond has recently created an innovation $15 million grant to encourage development on its ecosystem. This all suggest that Singapore tries to position itself as (one of) the leading blockchain hubs in the world.
 
Zilliqa seems to already taking advantage of this and recently helped launch Hg Exchange on their platform, together with financial institutions PhillipCapital, PrimePartners and Fundnel. Hg Exchange, which is now approved by the Monetary Authority of Singapore (MAS), uses smart contracts to represent digital assets. Through Hg Exchange financial institutions worldwide can use Zilliqa's safe-by-design smart contracts to enable the trading of private equities. For example, think of companies such as Grab, AirBnB, SpaceX that are not available for public trading right now. Hg Exchange will allow investors to buy shares of private companies & unicorns and capture their value before an IPO. Anquan, the main company behind Zilliqa, has also recently announced that they became a partner and shareholder in TEN31 Bank, which is a fully regulated bank allowing for tokenization of assets and is aiming to bridge the gap between conventional banking and the blockchain world. If STOs, the tokenization of assets, and equity trading will continue to increase, then Zilliqa’s public blockchain would be the ideal candidate due to its strategic positioning, partnerships, regulatory compliance and the technology that is being built on top of it.
 
What is also very encouraging is their focus on banking the un(der)banked. They are launching a stablecoin basket starting with XSGD. As many of you know, stablecoins are currently mostly used for trading. However, Zilliqa is actively trying to broaden the use case of stablecoins. I recommend everybody to read this text that Amrit Kumar wrote (one of the co-founders). These stablecoins will be integrated in the traditional markets and bridge the gap between the crypto world and the traditional world. This could potentially revolutionize and legitimise the crypto space if retailers and companies will for example start to use stablecoins for payments or remittances, instead of it solely being used for trading.
 
Zilliqa also released their DeFi strategic roadmap (dating November 2019) which seems to be aligning well with their OpFi strategy. A non-custodial DEX is coming to Zilliqa made by Switcheo which allows cross-chain trading (atomic swaps) between ETH, EOS and ZIL based tokens. They also signed a Memorandum of Understanding for a (soon to be announced) USD stablecoin. And as Zilliqa is all about regulations and being compliant, I’m speculating on it to be a regulated USD stablecoin. Furthermore, XSGD is already created and visible on block explorer and XIDR (Indonesian Stablecoin) is also coming soon via StraitsX. Here also an overview of the Tech Stack for Financial Applications from September 2019. Further quoting Amrit Kumar on this:
 
There are two basic building blocks in DeFi/OpFi though: 1) stablecoins as you need a non-volatile currency to get access to this market and 2) a dex to be able to trade all these financial assets. The rest are build on top of these blocks.
 
So far, together with our partners and community, we have worked on developing these building blocks with XSGD as a stablecoin. We are working on bringing a USD-backed stablecoin as well. We will soon have a decentralised exchange developed by Switcheo. And with HGX going live, we are also venturing into the tokenization space. More to come in the future.”*
 
Additionally, they also have this ZILHive initiative that injects capital into projects. There have been already 6 waves of various teams working on infrastructure, innovation and research, and they are not from ASEAN or Singapore only but global: see Grantees breakdown by country. Over 60 project teams from over 20 countries have contributed to Zilliqa's ecosystem. This includes individuals and teams developing wallets, explorers, developer toolkits, smart contract testing frameworks, dapps, etc. As some of you may know, Unstoppable Domains (UD) blew up when they launched on Zilliqa. UD aims to replace cryptocurrency addresses with a human readable name and allows for uncensorable websites. Zilliqa will probably be the only one able to handle all these transactions onchain due to ability to scale and its resulting low fees which is why the UD team launched this on Zilliqa in the first place. Furthermore, Zilliqa also has a strong emphasis on security, compliance, and privacy, which is why they partnered with companies like Elliptic, ChainSecurity (part of PwC Switzerland), and Incognito. Their sister company Aqilliz (Zilliqa spelled backwards) focuses on revolutionizing the digital advertising space and is doing interesting things like using Zilliqa to track outdoor digital ads with companies like Foodpanda.
 
Zilliqa is listed on nearly all major exchanges, having several different fiat-gateways and recently have been added to Binance’s margin trading and futures trading with really good volume. They also have a very impressive team with good credentials and experience. They dont just have “tech people”. They have a mix of tech people, business people, marketeers, scientists, and more. Naturally, it's good to have a mix of people with different skill sets if you work in the crypto space.
 
Marketing & Community
 
Zilliqa has a very strong community. If you just follow their Twitter their engagement is much higher for a coin that has approximately 80k followers. They also have been ‘coin of the day’ by LunarCrush many times. LunarCrush tracks real-time cryptocurrency value and social data. According to their data it seems Zilliqa has a more fundamental and deeper understanding of marketing and community engagement than almost all other coins. While almost all coins have been a bit frozen in the last months, Zilliqa seems to be on its own bull run. It was somewhere in the 100s a few months ago and is currently ranked #46 on CoinGecko. Their official Telegram also has over 20k people and is very active, and their community channel which is over 7k now is more active and larger than many other official channels. Their local communities) also seem to be growing.
 
Moreover, their community started ‘Zillacracy’ together with the Zilliqa core team ( see www.zillacracy.com ). It’s a community run initiative where people from all over the world are now helping with marketing and development on Zilliqa. Since its launch in February 2020 they have been doing a lot and will also run their own non custodial seed node for staking. This seed node will also allow them to start generating revenue for them to become a self sustaining entity that could potentially scale up to become a decentralized company working in parallel with the Zilliqa core team. Comparing it to all the other smart contract platforms (e.g. Cardano, EOS, Tezos etc.) they don't seem to have started a similar initiatives (correct me if I’m wrong though). This suggest in my opinion that these other smart contract platforms do not fully understand how to utilize the ‘power of the community’. This is something you cannot ‘buy with money’ and gives many projects in the space a disadvantage.
 
Zilliqa also released two social products called SocialPay and Zeeves. SocialPay allows users to earn ZILs while tweeting with a specific hashtag. They have recently used it in partnership with the Singapore Red Cross for a marketing campaign after their initial pilot program. It seems like a very valuable social product with a good use case. I can see a lot of traditional companies entering the space through this product, which they seem to suggest will happen. Tokenizing hashtags with smart contracts to get network effect is a very smart and innovative idea.
 
Regarding Zeeves, this is a tipping bot for Telegram. They already have 1000s of signups and they plan to keep upgrading it for more and more people to use it (e.g. they recently have added a quiz features). They also use it during AMAs to reward people in real time. It’s a very smart approach to grow their communities and get familiar with ZIL. I can see this becoming very big on Telegram. This tool suggests, again, that the Zilliqa team has a deeper understanding what the crypto space and community needs and is good at finding the right innovative tools to grow and scale.
 
To be honest, I haven’t covered everything (i’m also reaching the character limited haha). So many updates happening lately that it's hard to keep up, such as the International Monetary Fund mentioning Zilliqa in their report, custodial and non-custodial Staking, Binance Margin, Futures & Widget, entering the Indian market, and more. The Head of Marketing Colin Miles has also released this as an overview of what is coming next. And last but not least, Vitalik Buterin has been mentioning Zilliqa lately acknowledging Zilliqa and mentioning that both projects have a lot of room to grow. There is much more info of course and a good part of it has been served to you on a silver platter. I invite you to continue researching by yourself :-) And if you have any comments or questions please post here!
submitted by haveyouheardaboutit to CryptoCurrency [link] [comments]

Repo market impact on stock market

I’m no finance guy, I’m a systems engineer looking to understand the big moving pieces in our current financial system and how to quantify some of the stock market impacts. Today this repo business is a big news item. I don’t know how to directly connect the dots, but I’ve been seeing a lot of +$3 overnight increases in SPX since they got the presses printing. I doubt it’s a simple relationship but I see a correlation so I’m curious.
From what I’ve found on the repo system, I understand it essentially empowers banks to lend more high risk/return money. Bank loans are on margin so this new fed money is made up and then multiplied, and obviously there are many ways for it to land in the markets. Corporate loans for buybacks being one. Anyway a lot of repo money seems to imply a lot of money will enter the market.
How big of an impact is the repo compared to things like “normal” trading money supply, economic data, buybacks, foreign investment in US markets, and current day hot news items like China/trade?
Whenever the repo is over, what happens to the bank liquidity, or is it just that we accept that it wasn’t really a problem to begin with?
And if any of you are super smart and bored, at a top ELI5 level, how does this mess of a system we have make the sausage these days?
I’m starting to see a game where the political goal is that corporate taxes and low rates pumped bigly, tradetalks suppressed some of that growth to now, repo money pumps for today, tradetalksgoingwell should pick up the ball next, and the following move will appear if the upward momentum starts to fade before November...
Edit: Thank you for the responses! I’m quite ignorant about finance so it’s great to finally start leaning how this sector of our economy works.
submitted by johntaylor37 to wallstreetbets [link] [comments]

buying stock/shares online from US markets, but at what cost?

Tried asking CMC Markets through my online portal for stockbroking about this and they just keep saying "we do not offer tax advice" but they basically avoid the question.
question being. If I buy some stock - lets say Microsoft - through CMC Stockbroker online. I get a broker fee, fine. But I also have a messages saying -
" Trading US shares? You may be eligible to receive a reduced rate of withholding tax on your dividends and distributions. You can now electronically lodge a US tax form via the platform. To find out more, click here. "
and
" You can now electronically lodge the applicable US tax form through our third party supplier (Thomson Reuters). Please take care to ensure you are choosing the right section before filling out the form. "
and
" Company, Trust, or SMSF accounts are required to lodge one W-8BEN-E (Entities) or a W-8IMY for the account. In certain situations, entities completing a form W-8IMY may be required to complete separate forms for their beneficiaries. Accounts with multiple trustees/directors should make a resolution authorising a specific trustee or director to make the relevant certification on the form. "
my question to CMC that gets the same response ( and my question here which will probably get the same response) is - are there additional fees or taxes that I need to take into account when buying stock/shares in order to work out my margin to make profit when selling? I have no idea what all the extra info about is and am about to have to research it all obvs.
if I buy US stocks , do I get some kind of US tax hit that is taken out of the purchase and the profit? or just the profit? I assume the W-8BEN-E is about trying to claim it back.
an ELI5 would help rather than spending a bunch of money to hear a tax professional half explain it to me in a way I fail to understand. any laymen out there grasp this stuff and know a good way to approach it?
and yea, I know, this is not tax advice.... this is just being a bro...
submitted by mdkb to AusFinance [link] [comments]

What are the uses for high APR loans on ETH or tokens? (Can someone explain?)

Hey Folks. I understand how useful loans can be on maker with DAI at 8% let’s say to pay rent without selling your crypto or use it for % arbitrage (getting a loan at a platform and lending on another that pays higher APR).
But why would someone get a loan with a high APR like 20% or more in ETH or tokens? (Besides margin trading)
Can someone help me with an ELI5?
Thanks a lot.
submitted by lucasgabd to defi [link] [comments]

New To Trading, Would Appreciate Some General Information

I'm interested to start exploring the world of trading. I'm fairly small time, but want to gain knowledge as I go. I don't plan on investing any more than I'm willing to lose, so I'm staying in the low thousands for now.
The challenge is that I know nothing about how trading works, the terminology, or the ramifications of various choices. So I'll just list some questions here and hope for your input if possible. I'll probably edit this as I try to clarify my questions.
What I Want: To have an account where I can purchase or sell specific stocks as I choose, and withdraw funds as I see fit. I plan on doing my own research to help inform my choices. What will this cost as a percentage of whatever profits I make?
To start, I'd like to try some higher risk purchases with the limits that I've set out for myself.
I've opened an account with WealthSimple. I chose "Cash" but now realize that doesn't allow me to choose any of my investments, from what I see. So I'm going to open a TD Investment Account.
Opening TD Investment Accounts, I see various options, such as Margin, Cash, Self-Directed TFSA, etc. Can anyone advise what the best option might be given my goal?
I realize I don't even know enough to be asking the right questions. But I appreciate any feedback, ELI5 style, that anyone can provide.
submitted by DarseZ to PersonalFinanceCanada [link] [comments]

A user in r/wallstreetbets managed to lose $57,989.57 on a $3,000 investment (-1,832.99%). But is he really on the hook for it? Or is there more going on?

A reddit user by the name 1R0NYMAN came up with what he thought was a genius strategy to get free money via options trading and posted it in this thread.
The autists of wallstreetbets were mixed. Some of them thought it was genius, others, however, actually understood what they were talking about and strongly advised against this strategy.
Less than a week later, this thread pops up from 1R0NYMAN with the results mentioned in my title. Almost a 2000% loss. Oh, and his account was closed.
It doesn't stop there, though. Around the same time, Robinhood (the app used to make these trades) sent an email notification out to users that the trading strategy used by 1R0NYMAN was no longer being supported by the app, with a strong possibility that his loss was the direct cause.
But it gets more interesting. As the user WOW_SUCH_KARMA points out here, Robinhood may be legally liable for the losses due to some of their actions / lack of actions.
Now, the entire subreddit is exploding with memes and quality shitposts about the entire situation, and the latest news is that 1R0NYMAN has been contacted by MarketWatch, a stock market news site that may want to run a story about it all.
Who knows where it'll go from here.
EDIT: Because people keep asking, it's hard to get a firm understanding of what exactly happened without at least some knowledge of how options work, but this is a good place to start for an ELI5.
submitted by Grindelflaps to SubredditDrama [link] [comments]

US Long-term and short-term capital gains taxes

Some people have asked about paying taxes on cryptocurrencies and I thought I'd write a post about it. Disclosure:
Do I even need to pay taxes?
You only need to pay taxes if you sell AND make a profit. If you hold and don't sell, you don't need to pay taxes. If you sell - even if you had that cash for a fraction of a second - you still owe if you made a profit.
IRS treats cryptocurrency as property - not currency - and capital gains taxes apply. (Citation)
Pro tip: don't mess with the IRS. If they can get Capone, they can get you. If you're off by $5, they won't care but if you're hiding thousands - they'll come after you, find it, make you pay - with penalties and crazy interest rates. It's not worth it. Plus they'll be auditing some accounts and bank accounts with unusual activity. There was an announcement that the IRS will be asking taxpayers if you have any crypto income.
Capital losses
I'm going to start with this first since it comes into play with capital gains. Capital losses is the total amount you lost during the year. If your net activity results in a loss, you have the following benefits:
Capital gains
Now the fun part. First of all, you have to remind yourself that the only reason why you're paying taxes is because you earned extra income. Congrats! Now you have to pay the piper. There are two types of capital gains taxes:
Here are long-term capital gains tax rates and income tax rates.
Quick note: are you poor (i.e. single making < $38,600)? If so, what the hell are you doing playing with cryptocurrency! But fine, if you are then you pay no long-term capital gains taxes.
How to calculate your profit/loss
There are two typical ways to count it (I'm not going to give you shady advice): FIFO and LIFO.
Since this post is already long, here is a link with examples. I use FIFO. As long as you're consistent, you won't have any problems. If you switch between FIFO and LIFO depending on transaction to try to minimize taxes, you could get in trouble for tax evasion. Best to be consistent.
You need to create - if you haven't already - a massive spreadsheet of all your transactions and keep it on file for years. Here's what I record:
Profit formula is simple: (sell price - purchase price) * coin purchased - purchase fee - sell fee. If you sell a portion of your holdings, I'd break up the original purchase in two and track separately.
At the end of the year, add all this up (or just have a running total like me). Add capital losses to this. If the number is greater than zero then you likely owe taxes (depending on your bracket).
ELI5: progressive taxation
Lots of people don't quite understand how progressive taxes work - and this applies to ordinary income (not long-term capital gains taxes). Capital gains taxes are a flat percent based on ordinary income. Let's use the following assumptions for an example:
That said, with the above, you have $110,000 in "ordinary income" and $25,000 in long-term capital gains. Long-term capital gains: Your income puts you in the 15% investment tax bracket. $25,000 * 15% = $3,750 in taxes.
Short-term capital gains are more complex since they're progressive and I'll use "Single" filter for the example:
Add them up: $20,574.16 total tax which, out of $110,000, is 21.62% tax rate while you're in the 18.7% tax bracket. Adding the long-term capital gains taxes give you:
Again: in reality, you'll pay a lot less in taxes due to deductions, credits, and various other adjustments. This is just the pure rate based on the math above.
I hope this helps and good luck - I hope all of us have had a very good year but don't forget to prepare yourself for tax season.
submitted by SsurebreC to BitcoinMarkets [link] [comments]

Vanguard starting Commission FREE ETF trading for 1800 ETFs starting August 2018!

Vanguard said it would offer commission-free online transactions for nearly 1,800 ETFs, up from the current 77.
No other major brokerage does this (except Robinhood, M1Finance)
Details here:
https://investornews.vanguard/coming-in-august-the-largest-commission-free-etf-lineup-offered-to-investors/
https://www.prnewswire.com/news-releases/vanguard-to-further-drive-down-the-cost-of-investing-by-broadening-commission-free-etf-trades-300675259.html
https://www.cnbc.com/2018/07/02/vanguard-slashing-costs-on-nearly-all-etfs-even-rival-schwab.html
Competitors
NOTE: This news is good for short term traders or intermediate/advanced investors. For buy/hold and new investors this doesn't make much difference if they are investing in traditional low expense mutual funds or already free low expense ETFs.
For an excellent explanation see /u/ChekovsWorm comment below.
Edit1: to add M1Finance, vanguard website link
Edit 2:to add the NOTE based on u/dequeued recommendation. See detailed discussion below.
Edit 3:to add information about commission free ETFs of other brokerages.
Edit 4: Added link to ELI5 post.
submitted by chicagobuy to personalfinance [link] [comments]

The Only Guide for ELI5:What exactly is Forex trading?How ... ELI5: Herding (Crowd Psychology) Margin Trading 101: How It Works - YouTube What trading on margin means and how to use it  The Dough ... Complete guide to margin trading on Binance - YouTube

Hey look, finally an ELI5 that I can be helpful on. Day trading is a form of trading where you basically want to start and end the day with no open position. An open position means you either own a stock/option or haven't covered a short (I'm assuming you know what these mean if you've read up on stocks). NOTE: Margin trading is considered very high risk and should be avoided by both new and experienced traders. When a high margin trade goes well, it can reward the trader greatly. But when they go wrong, usually it’s the last you will see of this trader – end of career and perhaps a immense debt accumulated with the house. Buying on margin is deeply risky. You not only have the potential of losing your entire investment plus interest, but losing even more money through something called a margin call.To have a margin account, the Federal Reserve Board requires that you always have enough money in your account to cover the maintenance margin.At a minimum, you must have enough cash (equity) in your margin account Margin borrowing: $2,000 – In order to carry a margin debit balance or sell a security short, you must have at least $2,000 of margin equity in the account. Day trading: $25,000 – If you’re classified as a day trader, your account must maintain $25,000 in account equity to continue day trading in the account. To remove the day-trader In this example, a margin call will be triggered when the account value falls below $7,142.86 (i.e. margin loan of $5,000 / (1 – 0.30), which equates to a stock price of $35.71 per share.

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The Only Guide for ELI5:What exactly is Forex trading?How ...

Subscribe: http://bit.ly/SubscribeTDAmeritrade Exchange-traded funds (ETFs) have grown in popularity among investors over the past decades. This video can he... One trading jargon that you’ll hear very often is margin. It’s usually in terms like margin account, margin trading and even margin call. It seems a bit comp... Your A to Z on margin trading with Binance. Learn everything from opening your account, how to long and short and how to repay margin loans. Subscribe to kee... What is margin trading? What is a margin? What is the difference between a cash account and a margin account? In episode #34 of Real World Finance we dive de... Updated Tutorial here: https://youtu.be/88C3kBKohpM Binance save 10% on fees: https://www.binance.com/en/futures/ref/blockbuilders In this video I am going t...

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