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General Discussion / Re: BitSharesX Leveraged Instruments
« on: April 12, 2017, 07:27:04 pm »Disallow clients to leave positions opened on weekends in forex and commodities is a very good point. I remember well the gaps after weekend.This thread is old but the author of this thread is right, traders need leverage to make profits, if you want mass adoption in the DEX you'll need to attract clients. Offering them liquidity and leverage are two things that bitshares lack of.IMO the problem is that if you loose money with a broker account, you will have to pay. If the leverage is an BitShares algorithm, the failure will be at expense of BitShares.
You can code a negative balance protection that will automatically stop the user out when he is losing 80% of his account. Also, you can disallow clients to leave positions opened on weekends in forex and commodities. Crypto is 24/7 market so you don't need that. Forex and commodities are 24/5 markets. Also we have a reserve pool.
Regarding the stop out at 80% of an account value it may not work at any circumstances. Just remember trading Swiss franc after the announcement of Swiss central bank.
It was very near to a black swan event I admit, but such thing may arise easily every year. USD, oil, gold any other fiat (also crypto off course )may come with a lightening speed change and let accounts ruined.
Maybe trading fees can earn enough to cover it??? I do non know.
ANYWAY leveraged account would be a big invitation for traders.