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Offline kasman5

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Question ragading the decentralized exchange
« on: August 23, 2014, 11:53:25 AM »

Can someone give me ELI5 of how the exchange works? Also some markets are saying insufficent data feeds, why is this?
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Offline xeroc

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Re: Question ragading the decentralized exchange
« Reply #1 on: August 23, 2014, 12:05:40 PM »
the markets will open on monday .. (thats the plan)
you can (manuall - in the terminal) put buy orders but no short orders ...

the mechanics are described in the wiki
http://wiki.bitshares.org/index.php/Market_Peg

More on the exchange can be found on
http://wiki.bitshares.org/index.php/BitShares_X

welcome on board!
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Offline kasman5

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Re: Question ragading the decentralized exchange
« Reply #2 on: August 23, 2014, 12:18:32 PM »
Hi, I think you replied to me on reddit as well, very noob friendly this place which I like. 

So if you invest in bitBTC and BTC rises. You decide to sell your bitBTC for BTSX which you now have more of due to rise in price. That seems right to me.

Then what is the Collateral XTS part of the exchange. Is this used to short?
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Offline xeroc

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Re: Question ragading the decentralized exchange
« Reply #3 on: August 23, 2014, 12:49:31 PM »
Hi, I think you replied to me on reddit as well, very noob friendly this place which I like. 

So if you invest in bitBTC and BTC rises. You decide to sell your bitBTC for BTSX which you now have more of due to rise in price. That seems right to me.
True .. but only if BTC rises against the BTSX ...

Quote
Then what is the Collateral XTS part of the exchange. Is this used to short?
XTS is the BTSX in the test network. ... worth nothing much like bitcoin in the testnetwork .. dont mix theses up!

The collateral is used when someone goes short on bitUSD (as an example)
to short (create and lend) 1 bitUSD you need to put BTSX woth 2 USD into collateral ..
you will only get them back when you buy back bitUSD and 'cover' your position ...
This only makes sense if the price for a bitUSD goes down (relative to the BTSX) ...
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Offline kasman5

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Re: Question ragading the decentralized exchange
« Reply #4 on: August 23, 2014, 07:02:01 PM »
Ok this all makes sense except from the XTS part. The client I have downloaded was from here http://bitshares-x.info/. And when I go to the market and click bitBTC:BTSX market the column saying collateral has the XTS unit next to it? Is this due to change monday when it goes live?




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Offline tonyk

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Re: Question ragading the decentralized exchange
« Reply #5 on: August 23, 2014, 07:07:33 PM »
Ok this all makes sense except from the XTS part. The client I have downloaded was from here http://bitshares-x.info/. And when I go to the market and click bitBTC:BTSX market the column saying collateral has the XTS unit next to it? Is this due to change monday when it goes live?

Yes, It seems they forgot to change that (at least as of 0.4.5), it should say BTSX.
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

 

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