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Offline speedy

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I know this rule was put in place to make the peg more accurate, but I still feel that it should be my right to take the risk of putting in more competitive shorts, even if it causes cheap BitUSD to be created.

Offline Agent86

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Re: How am I supposed to catch the Bids if I cant short below average price?
« Reply #1 on: September 01, 2014, 03:48:37 PM »
I know this rule was put in place to make the peg more accurate, but I still feel that it should be my right to take the risk of putting in more competitive shorts, even if it causes cheap BitUSD to be created.
I'm sorry but the peg is more important than your self-proclaimed "right to create cheap BitUSD."

Offline speedy

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Re: How am I supposed to catch the Bids if I cant short below average price?
« Reply #2 on: September 01, 2014, 04:00:02 PM »
So you dont agree I should be free to take a risk if I want to?

Offline bytemaster

Re: How am I supposed to catch the Bids if I cant short below average price?
« Reply #3 on: September 01, 2014, 04:00:42 PM »
I know this rule was put in place to make the peg more accurate, but I still feel that it should be my right to take the risk of putting in more competitive shorts, even if it causes cheap BitUSD to be created.

I think there needs to be an outlet for people in your position and that outlet should be options contracts.   
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Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline bytemaster

Re: How am I supposed to catch the Bids if I cant short below average price?
« Reply #4 on: September 01, 2014, 04:03:50 PM »
So you dont agree I should be free to take a risk if I want to?

The issue is your demand to short exceeds the demand of others to "go long".   If shorting is unbounded then people can "short BitUSD to 0".    What you really want to do is "borrow" existing BitUSD and sell those.   

In a mature market with a lot of liquidity then I think the restrictions should be lifted slightly.
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Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline liondani

Re: How am I supposed to catch the Bids if I cant short below average price?
« Reply #5 on: September 01, 2014, 04:03:55 PM »
So you dont agree I should be free to take a risk if I want to?

Can you not short a bigger quantity of bitUSD instead? More collateral (BTSX) at risk? Am I missing something?
  https://bitshares.OPENLEDGER.info/?r=GREECE  | You are in Control | BUY | SELL | SHORT | SWAP | LOAN | TRADE |  

Ggozzo

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Re: How am I supposed to catch the Bids if I cant short below average price?
« Reply #6 on: September 01, 2014, 04:12:46 PM »
I know this rule was put in place to make the peg more accurate, but I still feel that it should be my right to take the risk of putting in more competitive shorts, even if it causes cheap BitUSD to be created.

I think there needs to be an outlet for people in your position and that outlet should be options contracts.

Are you working on implementing an option market? This would be great. Real option price models depend on a lot of factors, I am curious how you would implement things like time, volatility, settlement, assignment, and sub Penny strikes. It would be interesting to see how the premiums hold up.

Offline Agent86

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Re: How am I supposed to catch the Bids if I cant short below average price?
« Reply #7 on: September 01, 2014, 04:31:46 PM »
I know this rule was put in place to make the peg more accurate, but I still feel that it should be my right to take the risk of putting in more competitive shorts, even if it causes cheap BitUSD to be created.

I think there needs to be an outlet for people in your position and that outlet should be options contracts.
I think the way to go is a bond market, as described here: https://bitsharestalk.org/index.php?topic=7816.0

I think this can be a real big deal... i.e. I think it potentially gets people pulling money out of banks and into bitAssets in droves.

 

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