Author [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] Topic: ELI5 - The new shorting rules !!!by mere mortal so probably containing errors!!!  (Read 341 times)

Offline tonyk

  • Hero Member
  • *****
  • Posts: 3308
    • View Profile

The new rule are:
- shorts only execute at the feed price;
- shorts are ordered by the amount of collateral they are willing to provide ( i.e. >2x)
- short orders are now placed with min price they are willing to accept (in BTSX per shorted bitUSD)

If there is a feed even bitAssets can be shorted providing collateral in other bitAsset (do not take my word on this!!!)
« Last Edit: September 30, 2014, 02:37:58 PM by dat peg doe »
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline bytemaster

Re: The new shorting rules !!!by mere mortal so probably containing errors!!!
« Reply #1 on: September 30, 2014, 02:31:28 PM »
BitAssets cannot be used as collateral *yet* but we are working on that. 
For the latest updates checkout my blog: http://bytemaster.bitshares.org
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 Method-X

  • Hero Member
  • *****
  • Posts: 1120
  • VIRAL
    • View Profile
    • Learn to code, fast.
  • BTS: methodx
If I leave the "price limit" field blank, my short will (dynamically?) execute at any price so long as it's at the price feed, no matter what that is?

I need more info on "collateral ratio". If I want to short 100 BitUSD into existence and back it with 3x the amount of BTSX, what should I input in the "collateral ratio" field?

Offline tonyk

  • Hero Member
  • *****
  • Posts: 3308
    • View Profile
If I leave the "price limit" field blank, my short will (dynamically?) execute at any price so long as it's at the price feed, no matter what that is?

I need more info on "collateral ratio". If I want to short 100 BitUSD into existence and back it with 3x the amount of BTSX, what should I input in the "collateral ratio" field?

2x the current feed price * # of assets you are shorting
2x * 100 in this case.

2* 30.8290*100 right now! feed of 30.829 BTSX/bitUSD
« Last Edit: September 30, 2014, 05:15:59 PM by dat peg doe »
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline Method-X

  • Hero Member
  • *****
  • Posts: 1120
  • VIRAL
    • View Profile
    • Learn to code, fast.
  • BTS: methodx
If I leave the "price limit" field blank, my short will (dynamically?) execute at any price so long as it's at the price feed, no matter what that is?

I need more info on "collateral ratio". If I want to short 100 BitUSD into existence and back it with 3x the amount of BTSX, what should I input in the "collateral ratio" field?

2x the current feed price.

Do you mean 3x the current price feed?

i.e. 92.4 as of this moment in time.

EDIT: To clarify my confusion, I wasn't sure if I was to input collateral ratio as a grand total in BTSX (i.e. 9240), as a percent (i.e. 300%) or BTSX per BitUSD.
« Last Edit: September 30, 2014, 05:19:02 PM by MeTHoDx »

Offline tonyk

  • Hero Member
  • *****
  • Posts: 3308
    • View Profile
As a total, but

for 3X collateral you need to put

Short 100 bitUSD, with 3x collateral;feed of 30.829 BTSX/bitUSD

6165.8 =2* 30.8290*100 right now!

the 3082.9 BTSX will come from the sell of the bitUSD itself.
« Last Edit: September 30, 2014, 05:22:41 PM by dat peg doe »
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline Method-X

  • Hero Member
  • *****
  • Posts: 1120
  • VIRAL
    • View Profile
    • Learn to code, fast.
  • BTS: methodx
As a total, but

for 3X collateral you need to put

Short 100 bitUSD, with 3x collateral;feed of 30.829 BTSX/bitUSD

6165.8 =2* 30.8290*100 right now!

the 3082.9 BTSX will come from the sell of the bitUSD itself.

2* 30.8290*100

So I input 6165.8 into the text field?

Offline GaltReport

Is their a penalty for staying in a short position?  I thought I read something about that but I'm not sure.

Offline Method-X

  • Hero Member
  • *****
  • Posts: 1120
  • VIRAL
    • View Profile
    • Learn to code, fast.
  • BTS: methodx
The "total" is throwing me way off...

They should just make it so you enter 300% and bam it automagically calculates how much BTSX that is at that moment in time.

Offline tonyk

  • Hero Member
  • *****
  • Posts: 3308
    • View Profile
Is their a penalty for staying in a short position?  I thought I read something about that but I'm not sure.
not yet...coming soon, IFAK

The "total" is throwing me way off...

They should just make it so you enter 300% and bam it automagically calculates how much BTSX that is at that moment in time.

That's for BM to decide... I personally do not find it necessary...
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline Method-X

  • Hero Member
  • *****
  • Posts: 1120
  • VIRAL
    • View Profile
    • Learn to code, fast.
  • BTS: methodx
I still don't understand the collateral ratio. It makes no sense at all.

i.e. if I enter 6165.8 the TOTAL says 616,580.00 BTSX

wtf?

Offline Method-X

  • Hero Member
  • *****
  • Posts: 1120
  • VIRAL
    • View Profile
    • Learn to code, fast.
  • BTS: methodx
Quote from: dat peg doe
That's for BM to decide... I personally do not find it necessary...

You're also an accountant are you not? Of course you don't find it necessary, you deal with numbers all the time.

Offline tonyk

  • Hero Member
  • *****
  • Posts: 3308
    • View Profile
I still don't understand the collateral ratio. It makes no sense at all.

i.e. if I enter 6165.8 the TOTAL says 616,580.00 BTSX

wtf?

Short sell is still a sell!
As in you sell those $100 bitUSD and receive the BTSX proceeds from the sale.
so 200% from your account + 100% from the sale = 300% collateral.

Same explanation from a native speaker (BM) can be found here: https://bitsharestalk.org/index.php?topic=9289.msg120411#msg120411
« Last Edit: September 30, 2014, 06:07:10 PM by dat peg doe »
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

 

Google+