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Main => General Discussion => Topic started by: mf-tzo on November 18, 2014, 02:27:24 pm

Title: Rollover short position
Post by: mf-tzo on November 18, 2014, 02:27:24 pm
I have an open short position soon expiring and I want to rollover. How can I do that? If I let it expire without covering what exactly will happen? If I cover and try to re-open a short position this will not get actioned unless I offer a ridiculously high interest correct?
So what should I do? Please advise...
Title: Re: Rollover short position
Post by: bytemaster on November 18, 2014, 02:49:14 pm
No matter what you do your short position will be closed and will have to be entered again.  You can probably place a low interest rate and have it matched when the large order is covered in a week.   The very high interest rates are for very small quantities.
Title: Re: Rollover short position
Post by: mf-tzo on November 18, 2014, 03:14:14 pm
Thanks BM.

So the position will be closed and repay the debt based on the market feed correct? But when exactly? when for example it says 1 day at what time it will close automatically?
Title: Re: Rollover short position
Post by: biophil on November 18, 2014, 03:19:32 pm
No matter what you do your short position will be closed and will have to be entered again.  You can probably place a low interest rate and have it matched when the large order is covered in a week.   The very high interest rates are for very small quantities.

I wouldn't count on that large cover doing anything in the market, unless you know something I don't (always a good possibility!). I've been operating on the assumption that that order arose when someone purchased their own short. Otherwise it seems highly unlikely that $0.75M in matching shorts and asks appeared on the order book at exactly the same time. :)

If my assumption is correct, the owner of that order will almost certainly cover it manually rather than taking a big loss on the auto-cover.

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Title: Re: Rollover short position
Post by: clout on November 18, 2014, 05:48:41 pm
How does that large order get covered if they are not currently holding the bitUSD or that quantity of bitUSD does not appear on the order book within a week?
Title: Re: Rollover short position
Post by: bytemaster on November 18, 2014, 07:07:38 pm
How does that large order get covered if they are not currently holding the bitUSD or that quantity of bitUSD does not appear on the order book within a week?

Once their order expires any offer to sell/short bitUSD is immediately executed against the order.   If no one is selling then the order will ride.... because apparently all USD and shorts are happy with their position.
Title: Re: Rollover short position
Post by: Markus on November 19, 2014, 07:23:28 am
… and when it's done with the 5% fee will be distributed as interest to the remaining holders of BitUSD, right?
5% of 750 000 is how much exactly? :)
Title: Re: Rollover short position
Post by: joele on November 19, 2014, 07:29:10 am
How does that large order get covered if they are not currently holding the bitUSD or that quantity of bitUSD does not appear on the order book within a week?

Once their order expires any offer to sell/short bitUSD is immediately executed against the order.   If no one is selling then the order will ride.... because apparently all USD and shorts are happy with their position.

I don't exactly understand the bold sentence, please someone explain, thanks.
Title: Re: Rollover short position
Post by: Markus on November 19, 2014, 07:32:21 am
I think it means that the order will sit at the (changing) feed price until it is fully executed.
So for that time anybody can short or sell BitUSD at the feed.
Title: Re: Rollover short position
Post by: bytemaster on November 19, 2014, 01:07:53 pm

I think it means that the order will sit at the (changing) feed price until it is fully executed.
So for that time anybody can short or sell BitUSD at the feed.

Yes
Title: Re: Rollover short position
Post by: biophil on November 19, 2014, 03:46:45 pm
… and when it's done with the 5% fee will be distributed as interest to the remaining holders of BitUSD, right?
5% of 750 000 is how much exactly? :)

I don't think so. I'm pretty sure that no 5% fee is charged for 30-day expiry covers. The 5% fee is only for margin calls when the short's collateral is running out.

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Title: Re: Rollover short position
Post by: liondani on November 19, 2014, 04:50:21 pm
I'm pretty sure that no 5% fee is charged for 30-day expiry covers. The 5% fee is only for margin calls when the short's collateral is running out.

Sent from my SCH-S720C using Tapatalk 2

can someone confirm?


Sent from my ALCATEL ONE TOUCH 997D
Title: Re: Rollover short position
Post by: bytemaster on November 19, 2014, 05:32:31 pm
I'm pretty sure that no 5% fee is charged for 30-day expiry covers. The 5% fee is only for margin calls when the short's collateral is running out.

Sent from my SCH-S720C using Tapatalk 2

can someone confirm?


Sent from my ALCATEL ONE TOUCH 997D

Confirmed.
Title: Re: Rollover short position
Post by: zerosum on November 19, 2014, 06:57:14 pm

I think it means that the order will sit at the (changing) feed price until it is fully executed.
So for that time anybody can short or sell BitUSD at the feed.

Yes
It used to be at 110% the price feed (price in BTS/BitAsset).
Why did it change, if in fact it did change.
Title: Re: Rollover short position
Post by: mf-tzo on November 19, 2014, 09:23:39 pm
my short position has been fully covered (at a loss of course) and reopened so essentially this is a rollover until the next month (hopefully not at a loss again by then..)

But...the fact that so many people are still confused about how the whole thing exactly works, how the yield is accumulated and calculated, why it has changed from the 110% of the price feed, how exactly it would have worked if I haven't covered the short position etc etc means that either in here most people we are a bunch of idiots either that we need a clear presentation or even better a video explaining everything step by step with numerical examples...This is a basic marketing call to the rescue....
Title: Re: Rollover short position
Post by: zerosum on November 19, 2014, 09:41:20 pm
my short position has been fully covered (at a loss of course) and reopened so essentially this is a rollover until the next month (hopefully not at a loss again by then..)

But...the fact that so many people are still confused about how the whole thing exactly works, how the yield is accumulated and calculated, why it has changed from the 110% of the price feed, how exactly it would have worked if I haven't covered the short position etc etc means that either in here most people we are a bunch of idiots either that we need a clear presentation or even better a video explaining everything step by step with numerical examples...This is a basic marketing call to the rescue....

I do not need a video, all I need is a 3 words response. but you go ahead and ask for video if you wish. :)
Title: Re: Rollover short position
Post by: mf-tzo on November 19, 2014, 09:53:11 pm
I 've been asking for a video with numerical examples for a year now. Before there was no product but now a video with numerical examples is a necessity. Dropping a couple of lines explanation in English is not really helpful for everyone..
Title: Re: Rollover short position
Post by: liondani on November 19, 2014, 11:52:45 pm
In the meantime all the devs...  :)

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