Author Topic: Used all my BTS to short bitUSD......  (Read 4978 times)

0 Members and 1 Guest are viewing this topic.

Ggozzo

  • Guest
It actually is annoying me thinking about this. I assumed that I could exit regardless of the amount of BTS or bitUSD held in my account * as long as my collateral can cover any loss.

Having shorted stocks before, I'm actually credited the amount of money for the shares I shorted. I can then use that money to buy back the shares in order to close the position out. I don't ever have to go to the bank and transfer more money in to buy them back. But I also can't use that money to buy other stocks if it puts me over a required margin amount.

Why can't I be in control of the BTS from the sale of the bitUSD? I know it will mess up the 3x collateral claims, but I think 2x collateral is plenty. If not, you need to implement a manual cover that will execute at limit orders and not be shuffled to the back of the book.

Offline liondani

  • Hero Member
  • *****
  • Posts: 3737
  • Inch by inch, play by play
    • View Profile
    • My detailed info
  • BitShares: liondani
  • GitHub: liondani
It seem it would be common sense to be able to cover, especially since the blockchain controls the collateral.

THIS ^

I hope they implement the future to cover our shorts using the remaining collateral soon enough! Traders expect this by default...

Ggozzo

  • Guest
I realize it's a bit late now, but for any other readers, this is much easier to manage if you break up your shorts into small orders.  That way you can roll it all over gradually with a lot less extra BTS.

Is it all a single order coming due at once?

using the remaining collateral to cover shorts would be the best solution(?)
any update on this?

I actually don't want to do anything now. This is pretty lame and I will just wait it out and update if the market turns around or if I get screwed or if this problem is corrected. 


Ggozzo

  • Guest
I realize it's a bit late now, but for any other readers, this is much easier to manage if you break up your shorts into small orders.  That way you can roll it all over gradually with a lot less extra BTS.

Is it all a single order coming due at once?

It was 3 separate order. Two small, one bigger.

They all come due within a day of the first one.

This is the worst thing I have come across in BitShares. How could this be? It seem it would be common sense to be able to cover, especially since the blockchain controls the collateral.

Offline liondani

  • Hero Member
  • *****
  • Posts: 3737
  • Inch by inch, play by play
    • View Profile
    • My detailed info
  • BitShares: liondani
  • GitHub: liondani
I realize it's a bit late now, but for any other readers, this is much easier to manage if you break up your shorts into small orders.  That way you can roll it all over gradually with a lot less extra BTS.

Is it all a single order coming due at once?

using the remaining collateral to cover shorts would be the best solution(?)
any update on this?

Offline Troglodactyl

  • Hero Member
  • *****
  • Posts: 960
    • View Profile
I realize it's a bit late now, but for any other readers, this is much easier to manage if you break up your shorts into small orders.  That way you can roll it all over gradually with a lot less extra BTS.

Is it all a single order coming due at once?

Offline liondani

  • Hero Member
  • *****
  • Posts: 3737
  • Inch by inch, play by play
    • View Profile
    • My detailed info
  • BitShares: liondani
  • GitHub: liondani
BTS keeps falling and I wanted to cover some of my position but it says I have to buy bitUSD to cover. Try to buy bitUSD and i dont have sufficient funds. So is there a way around this or do I have to wait the 30 days out and get auto filled upon expiration?

Sure hope there is some way to get out. Losing BTS everyday!

Side note: why does my account dashboard not display how much I am short?

We are adding an operation that will allow you to cover a short position using the collateral at any time.  We are doing this by giving the user the ability to set the "call price" to anything higher than the "minimum call price".   This feature makes it trivial to bypass the 5% fee by slightly increasing your call price, so this makes the 5% fee impossible to enforce.

In reality the 5% fee merely served to create a variable amount of additional collateral depending upon the risk tolerance of each individual shorter.  Considering we are raising the min collateral requirement from 1.5 to 2x the added benefit of the 5% fee is insignificant.  The fear of a short squeeze and being forced to buy at up to 10% above the feed if there are not enough orders at the feed means there is still plenty of incentive to avoid forced buying.

If you set your call price at or above the price feed then your order will be matched against any and all bids up to 10% above the feed.   So be careful or you might just walk the book. 

Overall this will simplify the explanation of BitShares and shorts and remove uncertainty over how shorts and fees will be calculated.

@bytemaster

If I am right on current versions it is still not possible....
Will this future be implemented soon?

@skyscraperfarms
After expiration day if you not have covered yet you will loose up to 10% further (with current version, If I am not missing anything)
« Last Edit: April 08, 2015, 01:34:30 am by liondani »

Ggozzo

  • Guest
BTS keeps falling and I wanted to cover some of my position but it says I have to buy bitUSD to cover. Try to buy bitUSD and i dont have sufficient funds. So is there a way around this or do I have to wait the 30 days out and get auto filled upon expiration?

Sure hope there is some way to get out. Losing BTS everyday!

Side note: why does my account dashboard not display how much I am short?