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« on: June 04, 2015, 09:13:05 pm »
I havent been keeping up with all the latest revisions (too much day-job) so sorry if this idea has been discussed before, but...
At the moment no one is shorting BitUSD, IMO because shorting requires too much commitment.
Shorters have to:
-Put down twice as much collateral as the longs
-Are not guaranteed that they can easily/quickly get any BitUSD to cover
-Their collateral cant even be used to cover, they have to buy more BitUSD to cover (is that still the case?)
The result is that shorting is just waaay too stressful (I have never shorted BitUSD).
So how about reusing the price feeds to allow very short term CFD bets that are totally symmetrical to both sides? Both sides put in 100% worth of collateral, and the CFD is closed after 24 hours. The CFD is not tradeable so no covering is required, and you dont have to constantly monitor your position because you know that it will be fairly settled after 24 hours anyway.
You could possibly mix the markets together for extra liquidity: some BitUSD longs might not care about fungibility or not, so they could either get matched by a 200% BitUSD shorter for a long term BitUSD, or just a 100% shorter for a short term CFD.
Good idea? I personally would love to take short term bets on BTS/BTC - there's just no way in hell I am willing to go through the stress of putting down twice as much collateral and then desperately looking around to find BitBTC to cover afterwards.