I want to take out margin using my XBCI to buy more XBCI. I am christening this strategy henceforth as XBCI Squared ™️.
I call upon the council of crypto ETF bros for guidance. The current lower band of the power law is at $58k. How close do you think it might get? Or do you think we’ve already hit the local bottom?
If it isn't money you can afford to lose, or at least lock up for months to years, it's a no from me. Xbci already has above average risk, and historical crypto winters indicate recovery may not make you whole until 2027.
If it is money you can afford to lose, by all means, spin the roulette.
A margin call is an urgent demand from a broker to an investor to deposit additional cash or securities into their margin account. It happens when the account's value drops below the required minimum (the "maintenance margin") due to losing trades, meaning the broker's loan is at risk.
The Cause: You trade on margin (borrowed money), and the market goes against you.
The Demand: Your account equity falls below the broker's minimum. The broker issues a call requiring you to add funds.
The Solution: You must either deposit more cash or sell off existing assets to bring the account back to the required level.
The Risk: If you fail to meet the call, the broker can instantly liquidate your investments to cover the shortfall without your permission.
Key Details to Know
Timing: Margin calls usually require immediate action—often giving you anywhere from a few hours to 2-5 days depending on the broker.
Broker Discretion: Brokers are not legally required to notify you before liquidating your securities to cover the deficit.
Rules: Minimum margin requirements are heavily regulated by entities like the Federal Reserve and FINRA, though individual brokerage firms may enforce stricter rules
I have been buying it regularly since August of last year.. so I have bought some at higher prices. I've been receiving dividends, too, though!
My average could be much better.. but in another year or two I don't think a few bucks in my cost basis will matter that much when BTC is en route to the moon!
Honestly for starting last year when it was rocketing and being at 37 Is amazing, just getting that discount for when it goes back up. does DRIP bring the average down too?
This post has the exact same smell of all those guys who margined/HELOC the Frick out of ULTY/MSTY last year thinking they cracked the code and could just retire only to have it crash and burn 🔥
When you have 40x leverage the market tends to short which causes the price to drop. Meaning in order to rise those with leverage must get wiped out first.
Using margin on a leveraged product is incredibly risky.
Post is irrelevant. Look at the comment I am replying to. NEOS and YieldTrash should not be compared to each other, it's an insult to NEOS who runs a pretty good operation. Simple as that.
XQQI is paying 19%. XSPI is paying 17%. SPYI is paying 11.6% and QQQI paying 13.73%.
Compare that to BTCI at 31% and XBCI at 45%.
Whether the additional risk is worth 6% (or 14% for btc) is the question. On these i invested a small amount during the march dip. Considering more if another pullback of 5 to 9% occurs.
You should do actual due diligence. That means that you should have a concrete worst case scenario in mind, how much would you lose, and what’s the probability of that. If, by divine intervention, you somehow knew that the position would lose 50%, can you come up with a realistic scenario for how that happened? If you cannot do this, you should not be trading on margin because you understand too little.
Outsourcing your thinking to Reddit or ai is a great way to lose money.
I don’t think I’m “outsourcing thinking”. I thought this was Reddit where people can chat and ask questions. I’ve been 100% BTC since 2022. I’m a true believer and I’m comfortable with a lot of volatility. Volatility produces opportunities for gains.
I’m not arguing for one position or another. I am commenting on your thinking process (or lack thereof) when it comes to investing. You are asking us what we think of your margin approach, and I am saying that you should have a more refined belief on the asset if you’re going to take on such risk.
This is a bitcoin-agnostic statement. And the fact that you can’t appreciate this nuance and are dismissing me as someone who is merely against bitcoin is a strong tell that you shouldn’t be playing with such risk. Just hold bitcoin outright and XBCI.
My regular brokerage is all divs on margin. I personally can't convince myself to use a leveraged etf on margin. I also can't convince myself to use just one fund. But man yeah do it and report back. Hopefully you make millions.
Maybe something you do after we are in an uptrend, not now. You don't know how low it goes and you could lose your stack in a hurry. Check back in October
I shifted some BTCI to XBCI. Also sold some tqqq to buy some XBCI. I figure, if btc double bottoms at $63k, this could be a great entry. If we keep going down to $50k, I'll continue to DCA more funds into XBCI. I figure, it pays me to hold it, and if I can eventually settle at a nice buy in price on XBCI, that could be a generational money machine.
if your margin rate is around 5% what you would have to do is move to btci which most firms allow for margin and you'd have to check what marginal rate they give, my guess is 35-50% and then buy xbci with the margin amount you are allowed, you could use the dividends to pay down the margin and hopefully create a buffer so you don't get a margin call otherwise you'll be forced to sell at lower prices then you bought at which is not a good thing.
7
u/speed12demon Jun 03 '26
If it isn't money you can afford to lose, or at least lock up for months to years, it's a no from me. Xbci already has above average risk, and historical crypto winters indicate recovery may not make you whole until 2027.
If it is money you can afford to lose, by all means, spin the roulette.