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Offline abit

Expired shorts will sell at feed price only in next release?
« on: April 03, 2015, 04:53:36 PM »

In the coming release (0.9.0, now testing in dvs), expired shorts will sell at feed price only, is it really good?
In current release(0.8), expired shorts will sell above 90% of feed price, same as margin calls. I think this feature is reasonable.
Any discussion before? Please give me a link, thanks.
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Offline bytemaster

Re: Expired shorts will sell at feed price only in next release?
« Reply #1 on: April 03, 2015, 06:20:22 PM »
In the coming release (0.9.0, now testing in dvs), expired shorts will sell at feed price only, is it really good?
In current release(0.8), expired shorts will sell above 90% of feed price, same as margin calls. I think this feature is reasonable.
Any discussion before? Please give me a link, thanks.

We discussed it both ways and there are pros and cons.  If no one is selling their BitUSD then shorts will be hurt and thus they may not short again in the future.  Absent a reliable market maker the feed protection protects all shorts.
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Offline alt

Re: Expired shorts will sell at feed price only in next release?
« Reply #2 on: April 03, 2015, 11:50:30 PM »
In the coming release (0.9.0, now testing in dvs), expired shorts will sell at feed price only, is it really good?
In current release(0.8), expired shorts will sell above 90% of feed price, same as margin calls. I think this feature is reasonable.
Any discussion before? Please give me a link, thanks.

We discussed it both ways and there are pros and cons.  If no one is selling their BitUSD then shorts will be hurt and thus they may not short again in the future.  Absent a reliable market maker the feed protection protects all shorts.
I prefer to set at feed price only, or above 98%. 90% hurt short too much.

Offline BTSdac

Re: Expired shorts will sell at feed price only in next release?
« Reply #3 on: April 04, 2015, 03:24:43 AM »
In the coming release (0.9.0, now testing in dvs), expired shorts will sell at feed price only, is it really good?
In current release(0.8), expired shorts will sell above 90% of feed price, same as margin calls. I think this feature is reasonable.
Any discussion before? Please give me a link, thanks.

We discussed it both ways and there are pros and cons.  If no one is selling their BitUSD then shorts will be hurt and thus they may not short again in the future.  Absent a reliable market maker the feed protection protects all shorts.
one month is too short,  how about there are 3 months ,6 months and 12 months term short
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Offline abit

Re: Expired shorts will sell at feed price only in next release?
« Reply #4 on: April 04, 2015, 05:05:44 AM »
In the coming release (0.9.0, now testing in dvs), expired shorts will sell at feed price only, is it really good?
In current release(0.8), expired shorts will sell above 90% of feed price, same as margin calls. I think this feature is reasonable.
Any discussion before? Please give me a link, thanks.

We discussed it both ways and there are pros and cons.  If no one is selling their BitUSD then shorts will be hurt and thus they may not short again in the future.  Absent a reliable market maker the feed protection protects all shorts.
Just some thoughts.

The market will become less efficient with the new matching rule. If no one wants to buy BTS at feed price, the expired orders will probably hang there for a long time and won't take priority while matching. People could short/bid at a lower price and happily get matched with low-priced ask orders.

With 0.8, if some huge shorts expired, many traders will see it as a chance to buy cheap BTS and thus the market works. With 0.9, perhaps small traders are not willing to fill those huge orders. If a whale wants to buy the expired shorts (BTS) at a lower price, she will probably dump at btc38 to lower the feed price first. The result is similar.

We protect shorts which obey the rules (cover before expire).

Anyway, the market speaks, let's see what will happen.
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Offline starspirit

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Re: Expired shorts will sell at feed price only in next release?
« Reply #5 on: April 04, 2015, 05:42:10 AM »
Shorts are only required to be expired to meet a fall in demand for bitUSD. If there are no sell orders at or below the feed price, then there is really no reason to be forcing expiries. Let them sit at the feed price till needed by the market. There's no need to penalise them to given other speculators a good deal.

The only other reason to expire shorts is to force competition among shorts on interest rates. Whenever a short sits at the feed price, if their interest offer is better than expiring shorts looking to roll, the new short will take precedence.

Bottom line - I agree with a pricing limit at 100% of the feed.


Offline liondani

Re: Expired shorts will sell at feed price only in next release?
« Reply #6 on: April 04, 2015, 03:47:06 PM »
@tonyk

what do you say?



PS repeat yourself if necessary :)
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Offline Xeldal

Re: Expired shorts will sell at feed price only in next release?
« Reply #7 on: April 04, 2015, 04:00:52 PM »
Shorts are only required to be expired to meet a fall in demand for bitUSD. If there are no sell orders at or below the feed price, then there is really no reason to be forcing expiries. Let them sit at the feed price till needed by the market. There's no need to penalise them to given other speculators a good deal.

The only other reason to expire shorts is to force competition among shorts on interest rates. Whenever a short sits at the feed price, if their interest offer is better than expiring shorts looking to roll, the new short will take precedence.

Bottom line - I agree with a pricing limit at 100% of the feed.
+5% +5%

I'd like to see sell and buy orders able sit at the feed price also.

Offline mdj

Re: Expired shorts will sell at feed price only in next release?
« Reply #8 on: April 04, 2015, 05:32:46 PM »
I used to be averse to the 10% short rule but actually as there is currently such low liquidity it kinda makes sense and I'd rather see it stay.
Just think about it, at the moment there's an opportunity for anybody to make a smooth 0-10% in an illiquid market from expiring shorts. As more and more people do this the competition will increase and the spreads will tighten naturally.

 

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