ok which one of you covered their shorts 20 minutes before they expired?

[jshow5555]

Well, I for one believe he did the right thing for himself.

As in he shorted most of his position yet again. Has he been waiting for those shorts to expire, me and a ton of you it seems, would have sold him enough bitUSD to cover but we would have precluded him from re-shorting....
It is king of long term/bigger approach, what she did.

[merlin0113]

You know there's no penalty for just letting it expire right?

Although it is probably safe to assume this shorter didn't know there was no penalty, is there not generally a situation where covering your short right before it expires would be beneficial?

For example, let's say people are selling BitUSD (not short selling) under the price feed. Perhaps you would need to cover at a loss and for that reason you have avoided covering your short in the hope that the price will go up. But there is only 20 minutes left before your short expires so you no longer have any hope of that occurring. Wouldn't you prefer to make several bids for BitUSD at each unique price that it is being offered at, and then use that BitUSD to manually cover your short, rather than letting the market do it for you at the price feed? I guess that depends on how the auto-covering is implemented. Is it a limit order or is it a WYAIWYG order? If it's the latter you will end up paying more BTS of your collateral than necessary in the autocover, where the excess would go towards paying the overlap that gets distributed to BitUSD holders as yield.

Thanks for this post, now I know better about the expire rules.

[arhag]

You know there's no penalty for just letting it expire right?

Although it is probably safe to assume this shorter didn't know there was no penalty, is there not generally a situation where covering your short right before it expires would be beneficial?

For example, let's say people are selling BitUSD (not short selling) under the price feed. Perhaps you would need to cover at a loss and for that reason you have avoided covering your short in the hope that the price will go up. But there is only 20 minutes left before your short expires so you no longer have any hope of that occurring. Wouldn't you prefer to make several bids for BitUSD at each unique price that it is being offered at, and then use that BitUSD to manually cover your short, rather than letting the market do it for you at the price feed? I guess that depends on how the auto-covering is implemented. Is it a limit order or is it a WYAIWYG order? If it's the latter you will end up paying more BTS of your collateral than necessary in the autocover, where the excess would go towards paying the overlap that gets distributed to BitUSD holders as yield.

[merlin0113]

Wow I really thought my short order would get filled when all those guys had to cover...  it was a ton of orders and I'm offering 5% on bitusd.

I was being confident about short successfully by offering 0 interests since one month earlier it did. So bad I missed it.

[roadscape]

Lol.. For some reason I thought that margin calls happen in the 'time' dimension as well

[lil_jay890]

Wow I really thought my short order would get filled when all those guys had to cover...  it was a ton of orders and I'm offering 5% on bitusd.

It actually looks like the short was the same person with several orders out.  He put in a new short at the highest interest rate (6.14) and basically rolled over his short by covering into those orders.

[merlin0113]

You know there's no penalty for just letting it expire right?

Please elaborate this!

[toast]

You know there's no penalty for just letting it expire right?