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Offline aloha

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Is short matched against bids or asks
« on: September 14, 2014, 11:22:41 AM »

aloha to all  :)

I have installed new update 0.4.15 and in Help (top right corner), Market Rules Summary, this is  in line 3)
"Short orders will only be matched against asks that are below the moving average. (ie: people must be selling BTSX for less than $0.03)"
I thought that shorts are matched against bids or buyers not against asks or sellers.
Please correct me if I am wrong.

aloha  :)


Offline Xeldal

Re: Is short matched against bids or asks
« Reply #1 on: September 14, 2014, 02:10:39 PM »
this is one of many backwards, highly confusing, statements.  Some people prefer to talk in terms of bitUSD/BTSX and some in terms of BTSX/bitUSD.  The two are often mixed together and the meaning is lost or highly scrambled.

My personal opinion is if your talking about a 'short' you are trying to sell something.  All the instructions should take this perspective.  So in shorting bitUSD we should be talking in terms of BTSX per bitUSD, not the other way around.

If you prefer the other way around, you should change your terms and say instead. "going long with borrowed BTSX"  or "borrowed long"... idk

a short is never looking for a matching ask.  a long is never looking for a matching bid.  Its nonsensical and should be avoided.

Offline aloha

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Re: Is short matched against bids or asks
« Reply #2 on: September 14, 2014, 02:32:35 PM »
Thanks Xeldal, that is what I thought, but can you please help me to understand did they make mistake in which case we can ask for it to be corrected or not in which case it would be nice to know what kind of logic is used?
Thanks
aloha  :)

Offline Xeldal

Re: Is short matched against bids or asks
« Reply #3 on: September 14, 2014, 03:01:05 PM »
Quote
"Short orders will only be matched against asks that are below the moving average. (ie: people must be selling BTSX for less than $0.03)"

The statement is correct but its flipped logically.  In order to sell your bitUSD(short) you have to find someone else willing to sell you BTSX.

Every trade has two sides.  You're always buying something as well as selling something.  You flip the logic depending on what you're pricing your statement in (bitUSD or BTSX)

So if you want to say something about a bitUSD short (which is by definition priced in something else, in this case BTSX)  and price the short in its own unit(bitUSD) you have to flip the logic of your statement as reflected in the above quote... (which causes the word 'short' to lose its meaning)


The above quote can(should) be written with the same meaning using the logic and pricing implied by the word 'short'
Quote
Short orders will only be matched against bids that are above the moving average. (ie: people must be buying bitUSD for more than 33.33BTSX

I contend that in order to use the first quote and have it make any sense, a new word/phrase needs to be substituted for short.


 
« Last Edit: September 14, 2014, 04:39:43 PM by Xeldal »

Offline aloha

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Re: Is short matched against bids or asks
« Reply #4 on: September 14, 2014, 04:39:13 PM »
Thank you Xeldal  :)

 

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