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Offline Flor

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Trading strategies - Short selling possibility with BitShares ?
« on: February 18, 2015, 01:34:35 PM »

Hello all,

I have two trading strategies that gives very good profits and I would like to know if BitShares could facilitate my trading.

- The first one provides daily signal to enter long or short position on BTC/USD.
- My second strategy is also long and short but applies to fiat currencies pairs like EUR/USD, GBP/USD, USD/JPY and AUD/USD.

The position is kept for 7 days in average.

My idea for the moment is :

Both strategies with FX broker that have fiats pairs and Bitcoin CFD.
or both strategies with FX broker that have fiats and BTC/USD pairs (i.e. FX Open)
or BTC/USD strategy with a crypto exchange that propose short selling (i.e. BitFinex) and the fiat with FX broker

Advantage of using FX broker services is the possibility to automatize trading with Metatrader sofware (MT4) and also to sell trading signals to others traders (it could be easy for others traders to follow my signals because several FX broker have Bitcoin CFD). The risk to see my account hacked is also reduced, I think here to the recent attack on BTER.

Drawback I can see with regulated FX brokers is that trading Bitcoin CFD or BTC/USD as a 'normal' securities will lead to legal declaration of profits and huge tax.

I'm newbe with crypto but I know BitShares offer a flexible and decentralized exchange with various securities to be traded and I would like to know how it could help.

Is there enought liquidity to guaranty order of 10k€ execution on a daily basis ?
It is possible to go short BitBTC for example ? and go short BitUSD, or BitGBP, etc ?

Thank you for any help or advise you could give me,

Offline Troglodactyl

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Re: Trading strategies - Short selling possibility with BitShares ?
« Reply #1 on: February 18, 2015, 02:01:16 PM »
Welcome!

BitShares currently enables shorting BitUSD, BitGBP, and BitBTC against BTS, with additional markets ready to be enabled once there's sufficient demand for them.  BitGBP is almost no volume at this point though.

You can see a listing of collateralized pegged assets here, along with their trade volumes in the last 24 hours: http://bitsharesblocks.com/assets/market

Though the benefits of decentralized exchange are significant, this exchange is still young, so liquidity is definitely still low.  ...So tell your friends.  :P

Offline Flor

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Re: Trading strategies - Short selling possibility with BitShares ?
« Reply #2 on: February 18, 2015, 02:58:44 PM »
Hi, thanks for clarifying that point.

I already visited this page but haven't notice the short selling possibility.

Trading "again BTS" mean that if I'm long BitUSD and I want to go long BitEUR, I need first to buy BTS, then buy BitEUR. If correct it is a serious drawback for my trading as I can see spead is quite high and I can expect serious losses. Please tell me if I miss some point, I'm newbee with all this :)
« Last Edit: February 18, 2015, 03:01:26 PM by Flor »

Offline liondani

Re: Trading strategies - Short selling possibility with BitShares ?
« Reply #3 on: February 18, 2015, 03:59:59 PM »
check any now and then when somebody short euro you get your euros at feed price...  liquidity will increase soon since market makers are jumping in....  if you want euro at feed price tell me,  I am happy to short bitEUR again  :)

Sent from my ALCATEL ONE TOUCH 997D

  https://bitshares.OPENLEDGER.info/?r=GREECE  | You are in Control | BUY | SELL | SHORT | SWAP | LOAN | TRADE |  

Offline Flor

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Re: Trading strategies - Short selling possibility with BitShares ?
« Reply #4 on: February 18, 2015, 04:12:06 PM »
Sorry for the basic question but there are 2,363 EUR of share supply for BitEUR, does it mean nobody can buy more than this ? or is the exchange generate BitEUR to supply demand ?

Offline Methodise

Re: Trading strategies - Short selling possibility with BitShares ?
« Reply #5 on: February 18, 2015, 06:52:56 PM »
You can go long any quantity of bitEUR, providing there is corresponding demand from shorts.

BTS: methodise

Offline speedy

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Re: Trading strategies - Short selling possibility with BitShares ?
« Reply #6 on: February 18, 2015, 09:06:58 PM »
Sorry for the basic question but there are 2,363 EUR of share supply for BitEUR, does it mean nobody can buy more than this ? or is the exchange generate BitEUR to supply demand ?

BitEUR is created when 2 market participants take on opposite view on the direction of Euros relative to BitShares. One thinks BTS will increase relative to Euros, so he shorts BitEUR. The other would rather hold BitEUR so he buy is it.

Offline Troglodactyl

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Re: Trading strategies - Short selling possibility with BitShares ?
« Reply #7 on: February 19, 2015, 03:17:34 AM »
Hi, thanks for clarifying that point.

I already visited this page but haven't notice the short selling possibility.

Trading "again BTS" mean that if I'm long BitUSD and I want to go long BitEUR, I need first to buy BTS, then buy BitEUR. If correct it is a serious drawback for my trading as I can see spead is quite high and I can expect serious losses. Please tell me if I miss some point, I'm newbee with all this :)

On that page the whole "market issued assets" section means assets that are pegged to track the value of something external, and are shorted into existence with BTS as collateral.  Once those assets are shorted into existence, they can be traded against each other without going through BTS, just shorting them and increasing their supply requires BTS to collateralize them.

Offline Flor

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Re: Trading strategies - Short selling possibility with BitShares ?
« Reply #8 on: February 23, 2015, 04:03:28 PM »
Thank you all for clarifiying.

 

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