Rekt, a term from British English, means to lose everything. A trader might get rekt because of a failed trade or investing in a scam cryptocurrency. A trader s funds are wiped out in a single moment, and he may never recover from the loss. A market dive is also an example of a trader getting rekt. Here are some reasons why you might get rekt:
Using leverage to buy and sell can lead to a series of bad outcomes, and the last thing you want is to get rekt. Leverage in a volatile market can lead to REKT if you re not careful. To avoid REKT, don t invest in large trades unless you re confident in your skills and experience. Instead, take small trades and leverage them to trade bigger.
A typical forex trader loses more than three percent of his investments in a day. It is possible that the exchanges that resell forex don t offer a regulated platform to buy and sell. Then you have to rely on brokers and middlemen. Many big banks charge too much, but the brokers don t have any skin in the game. When a trade goes bad, they are bailout-ed out by the big banks.
In the meantime, futures traders can recreate the glory days of trading. Hayes, who quit his safe equities job, started trading futures instead. However, the risks are higher than in equities trading. Traders who don t understand how these options work can easily get rekt. It is always better to get a financial adviser before jumping into a forex trade.
The BitMEX industry is full of snake oil salesmen, criminals, and con men. Professor Nouriel Roubini said that he worked with nonaccredited investors, retail suckers, and degenerate gamblers. In Italian, "rekt" means fucked in the ass. Thousands of people have fallen into financial ruin. The world s leading professor of mathematics has warned of this problem.
Another reason why Forex traders get rekt is because of leverage. Leverage can magnify your gains and losses, but it can also cause margin calls, which wipe out a significant amount of your trading account. The best way to limit your leverage is to use less than 10x, which gives you some breathing room. Arbitrage opportunities can also be found among different dealers and exchanges. Arbitrage opportunities can be great opportunities if you know how to find them.