Why no one is shorting bitassets?

[kov]

There's an overall lack of liquidity on the internal market, causing distortions and inefficiencies on its own. A lot of these issues will resolve themselves if/when the exchange picks up volume.

[profitofthegods]

There is no 10% penalty for expired shorts  since last hard fork on tuesday AFAIK

Oh ok cool, thanks. I can never keep up with changes.

[xeroc]

There is no 10% penalty for expired shorts  since last hard fork on tuesday AFAIK

[profitofthegods]

I agree 10% is too high, but as long as there are automated margin call orders people wanting to buy a likely to be forced to pay over the market (to beat the margin orders at call price) so there should remain a good incentive for people to close their own orders before it reaches the level of being called.

I think being able to keep a short open for a longer period of time would also be good, as automatically closing after 30 days has left a backlog of short orders being margin called.

[bitmarley]

Expiring shorts are also automated so are exposed to the same issue but everyone agrees they shouldn't be penalized 10%. If the market feed price is trailing the market price that is a separate problem that should be addressed separately. Perhaps compare the current price feed to that of yesterday or 4 hours ago to see whether a swan event is currently happening or something. But anyway it shouldn't be a policy against the short who is margin called.

[Troglodactyl]

Yes. I don't have a problem with it for margin calls, but enabling it for expirations is pretty bad.

Why should it even happen for margin calls? The whole point of putting down a certain amount of collateral is to keep you covered up to a certain market price. Once that point is reach you just unwind. The participant has already lost pretty bad at that point so I can't see any trading strategy that depends on that setup.

If a margin call happens in a rapid BTS dip, the feed may be trailing the market price, so in that scenario force covering only at the feed could be more of a black swan risk resulting in undercollateralized BitAssets.

[xeroc]

I wonder what happend with this issue:
https://github.com/BitShares/bitshares/issues/1499

[bitmarley]

Yes. I don't have a problem with it for margin calls, but enabling it for expirations is pretty bad.

Why should it even happen for margin calls? The whole point of putting down a certain amount of collateral is to keep you covered up to a certain market price. Once that point is reach you just unwind. The participant has already lost pretty bad at that point so I can't see any trading strategy that depends on that setup.

[Troglodactyl]

10% above buyback rule is arbitrary and distorts the market, good thing it was identified for the next BTA iteration

Yes. I don't have a problem with it for margin calls, but enabling it for expirations is pretty bad.

[toast]

10% above buyback rule is arbitrary and distorts the market, good thing it was identified for the next BTA iteration

[sittingduck]

"If you want to make money off of insider trading, then do something useful like the Moonstone guys instead of crying about your gambling losses."

- bitWarren Buffett.

Lol


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[Tuck Fheman]

"If you want to make money off of insider trading, then do something useful like the Moonstone guys instead of crying about your gambling losses."

- bitWarren Buffett.

[toast]

Moonstone team is bulding the BitShares equivalent of Ethereum's Mist

Let's not exaggerate too much...

[toast]

It is not unfair to shorts, you can roll over ever day if you want. It just means you have to accept your losses day by day instead of all at once. That does not increase your losses, the only thing that does is decrease your leverage (so shorting as much as before USD requires buying more BTS than before because you lost BTS from shorting).

BTS long-term HODLers are slowly calling out the superbulls who were effectively borrowing money to buy BTS. A BitUSD holder can exit a huge position with 10-15% gains depending on when he bought in, which is like calling their loans with interest and a premium.

A very simple solution is to put all fees from all assets into a pool that *BTS holders* get to draw from (not delegates not, extra interest!). Then at some point the measly income is better than the lack of interest the scared shorts are paying, and BTS price can start rising again.

[Tuck Fheman]

Reality check answer: I think you're being overly protective of BTS. And it comes across as though everybody who has doubts/critique about BTS is attacked. This is not only you, it's the culture of this forum. It has been this way since the beginning, far before there was even a mention of a merger.

This is a helpful reality check for me.  Thank you.

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