Author Topic: Stuck collateral at call price after expired shorts  (Read 4493 times)

0 Members and 1 Guest are viewing this topic.

Offline cylonmaker2053

  • Hero Member
  • *****
  • Posts: 1004
  • Saving the world one block at a time
    • View Profile
  • BitShares: cylonmaker2053
Quote
I think pushing the tech out to merchants is what'll eventually drive big liquidity.

Yes, there is absolutely no reason why merchants could not accept BitAssets. Furthermore, I wouldn't mind receiving BitUSD or BitCNY as compensation for jobs I perform for others.

Yeah for people like us in this forum accepting bitassets is a no-brainer, esp bitUSD/CNY at the moment (hopefully a lot of others as liquidity improves!); but what we need is something like BitPay to help non-crypto-savvy merchants get on board...it has to be super easy and convert to USD or other local currencies w/out slippage. 1 bitUSD should almost exactly = 1 USD for a merchant at PoS.

Offline joereform

Quote
I think pushing the tech out to merchants is what'll eventually drive big liquidity.

Yes, there is absolutely no reason why merchants could not accept BitAssets. Furthermore, I wouldn't mind receiving BitUSD or BitCNY as compensation for jobs I perform for others.

Offline cylonmaker2053

  • Hero Member
  • *****
  • Posts: 1004
  • Saving the world one block at a time
    • View Profile
  • BitShares: cylonmaker2053
we really need a lot more liquidity in this system!

https://soundcloud.com/beyond-bitcoin-hangouts/beyond-bitcoin-05-29-2015-dev-hangout-s3#t=11:39

Great talk on liquidity, thx. I think pushing the tech out to merchants is what'll eventually drive big liquidity. We're kind of just tinkering with speculation at the moment with bitassets, but once they start getting demanded by merchants for trade then we'll see a nice natural market developing around the pegs with trading margins shrinking.


Offline cylonmaker2053

  • Hero Member
  • *****
  • Posts: 1004
  • Saving the world one block at a time
    • View Profile
  • BitShares: cylonmaker2053
Right now it would cost me $1382 in bitcoin to buy 1000 bitUSD using blocktrades.info

It would cost me $1433 in bts to buy 1000 bitUSD using blocktrades.info

That massive premium to buy bitUSD is because very few bitUSD longs are selling and none are selling even close to the peg.

we really need a lot more liquidity in this system!

Offline maqifrnswa

  • Hero Member
  • *****
  • Posts: 661
    • View Profile
1 bitUSD != 1 realUSD.

You can view this as the premium paid to today's shorters to generate bitUSD. Or you can see it as 1 bitUSD is actually pegged to 1.1 realUSD, but you can always trade in 1 bitUSD for at least 1 realUSD worth of BTS.

The market is such that you get a premium when you short, but are shocked when you have to pay a premium to close ;-)
https://www.youtube.com/watch?v=SjbPi00k_ME
maintains an Ubuntu PPA: https://launchpad.net/~showard314/+archive/ubuntu/bitshares [15% delegate] wallet_account_set_approval maqifrnswa true [50% delegate] wallet_account_set_approval delegate1.maqifrnswa true

Offline karnal

  • Hero Member
  • *****
  • Posts: 1068
    • View Profile
Right now it would cost me $1382 in bitcoin to buy 1000 bitUSD using blocktrades.info

It would cost me $1433 in bts to buy 1000 bitUSD using blocktrades.info

That massive premium to buy bitUSD is because very few bitUSD longs are selling and none are selling even close to the peg.

Shitty situation.

Offline liondani

  • Hero Member
  • *****
  • Posts: 3737
  • Inch by inch, play by play
    • View Profile
    • My detailed info
  • BitShares: liondani
  • GitHub: liondani
You could neutralize your bitUSD short by going long bitCNY... I know its not a pure play, but it will reduce the exposure you have to bts until your bitUSD short is covered by the system.

clever  ;)

Offline maqifrnswa

  • Hero Member
  • *****
  • Posts: 661
    • View Profile
You can cover expired shorts? I don't get why my collateral needs to be locked up if im not short anymore. I end up taking on full risk after my short expires because i have to wait until someone buys at the feed (or buy more to cover expired short?)

Don't think of it as expired shorts. You are still short, but your short is now callable. It doesn't mean you will get called, but you may - and it will be called in order of collateralization (call price). This is exactly how BitAsset 2.0 is supposed to work as well.

everyone else's advice applies, I just wanted to make sure it was clear you are technically still short and can remain short if you'd like in this current "callable" state, or you can roll over your shorts and in the process produce some nice BTS for yourself
maintains an Ubuntu PPA: https://launchpad.net/~showard314/+archive/ubuntu/bitshares [15% delegate] wallet_account_set_approval maqifrnswa true [50% delegate] wallet_account_set_approval delegate1.maqifrnswa true

Offline maqifrnswa

  • Hero Member
  • *****
  • Posts: 661
    • View Profile
4) There are $80k at the call price, in what order would my position be resolved? It may take months for this position to unwind correct?
4)I don't know.  I assume in the order which they were placed??

They are filled in order of collateralization (that is lowest call price first)
maintains an Ubuntu PPA: https://launchpad.net/~showard314/+archive/ubuntu/bitshares [15% delegate] wallet_account_set_approval maqifrnswa true [50% delegate] wallet_account_set_approval delegate1.maqifrnswa true

Offline lil_jay890

  • Hero Member
  • *****
  • Posts: 1197
    • View Profile
Right now it would cost me $1382 in bitcoin to buy 1000 bitUSD using blocktrades.info

It would cost me $1433 in bts to buy 1000 bitUSD using blocktrades.info

That massive premium to buy bitUSD is because very few bitUSD longs are selling and none are selling even close to the peg.

Offline lil_jay890

  • Hero Member
  • *****
  • Posts: 1197
    • View Profile
You could neutralize your bitUSD short by going long bitCNY... I know its not a pure play, but it will reduce the exposure you have to bts until your bitUSD short is covered by the system.
I can neutralize by buying bitusd of my entire collateral ampunt  but im not prepared to invest that much over 10k bitUSD more at this point

Only 50% of your collateral amount needs to be purchased and right now since BTS has about doubled since 30 days ago you can buy your bitUSD, cash out the short, and have a nice profit. I just did that with my Gold and Silver shorts. Mmm...tasty BTS :) .

You will have to pay a large premium above the peg.  There's too little bts for sale right now, which has frozen the market.

Offline Riverhead

You could neutralize your bitUSD short by going long bitCNY... I know its not a pure play, but it will reduce the exposure you have to bts until your bitUSD short is covered by the system.
I can neutralize by buying bitusd of my entire collateral ampunt  but im not prepared to invest that much over 10k bitUSD more at this point

Only 50% of your collateral amount needs to be purchased and right now since BTS has about doubled since 30 days ago you can buy your bitUSD, cash out the short, and have a nice profit. I just did that with my Gold and Silver shorts. Mmm...tasty BTS :) .

Offline lil_jay890

  • Hero Member
  • *****
  • Posts: 1197
    • View Profile
I suggested bitCNY because like you said, it is the only other asset that is fairly liquid and near the peg... I'm just guessing based on the past, that CNY/USD will be much less volatile that bts/USD.  Right now there is so little bitUSD for sale that it is impossible to cover a larger position.

Offline jsidhu

  • Hero Member
  • *****
  • Posts: 1335
    • View Profile
You could neutralize your bitUSD short by going long bitCNY... I know its not a pure play, but it will reduce the exposure you have to bts until your bitUSD short is covered by the system.
I can neutralize by buying bitusd of my entire collateral ampunt  but im not prepared to invest that much over 10k bitUSD more at this point
Hired by blockchain | Developer
delegate: dev.sidhujag