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Main => General Discussion => Topic started by: clayop on November 25, 2014, 08:03:28 pm

Title: Question about Force Covering
Post by: clayop on November 25, 2014, 08:03:28 pm
When force covering takes place, what will be the covering price? I couldn't find any clue on the forum.

Does it rely on feed price, or call price? What happens if the amount of force cover exceeds the amount of total shorts?
Title: Re: Question about Force Covering
Post by: bytemaster on November 25, 2014, 08:11:34 pm
Quote from: clayop on November 25, 2014, 08:03:28 pm
When force covering takes place, what will be the covering price? I couldn't find any clue on the forum.

Does it rely on feed price, or call price? What happens if the amount of force cover exceeds the amount of total shorts?

It will use the feed price (or highest bid if there are bids higher than the feed price).   If there are not enough new shorts then your short position will remain open until a new short position is created or someone decides to sell. 
Title: Re: Question about Force Covering
Post by: Shentist on November 25, 2014, 08:15:42 pm
is it correct, that the cover operation will not use owned assets?

i just experiemented with some funds and it seems it took not the available bought assets in my wallet, but covered through the feed price.
is this correct?
Title: Re: Question about Force Covering
Post by: bytemaster on November 25, 2014, 08:20:05 pm
Quote from: Shentist on November 25, 2014, 08:15:42 pm
is it correct, that the cover operation will not use owned assets?

i just experiemented with some funds and it seems it took not the available bought assets in my wallet, but covered through the feed price.
is this correct?

If you are Short BitUSD then cover operation will take BitUSD out of your balance and use it to cover your order.
Title: Re: Question about Force Covering
Post by: xeroc on November 26, 2014, 07:14:55 am
Quote from: bytemaster on November 25, 2014, 08:20:05 pm
Quote from: Shentist on November 25, 2014, 08:15:42 pm
is it correct, that the cover operation will not use owned assets?

i just experiemented with some funds and it seems it took not the available bought assets in my wallet, but covered through the feed price.
is this correct?

If you are Short BitUSD then cover operation will take BitUSD out of your balance and use it to cover your order.
Hu?! How is that? How can the blockchain determine which balance_ids belong to my account?
IIRC a force-cover will buy from the market at feed price .. while only the manual cover will take bitUSD from your account ..
Title: Re: Question about Force Covering
Post by: Markus on November 26, 2014, 07:36:00 am
Quote from: xeroc on November 26, 2014, 07:14:55 am
Quote from: bytemaster on November 25, 2014, 08:20:05 pm
Quote from: Shentist on November 25, 2014, 08:15:42 pm
is it correct, that the cover operation will not use owned assets?

i just experiemented with some funds and it seems it took not the available bought assets in my wallet, but covered through the feed price.
is this correct?

If you are Short BitUSD then cover operation will take BitUSD out of your balance and use it to cover your order.
Hu?! How is that? How can the blockchain determine which balance_ids belong to my account?
IIRC a force-cover will buy from the market at feed price .. while only the manual cover will take bitUSD from your account ..

Nobody's wrong, just confused :)
Shentist was asking about manual covering whereas the OP meant forced margin call covering.