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Main => General Discussion => Topic started by: tonyk on September 30, 2014, 02:30:19 pm

Title: ELI5 - The new shorting rules !!!by mere mortal so probably containing errors!!!
Post by: tonyk on September 30, 2014, 02:30:19 pm
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!!!)
Title: Re: The new shorting rules !!!by mere mortal so probably containing errors!!!
Post by: bytemaster on September 30, 2014, 02:31:28 pm
BitAssets cannot be used as collateral *yet* but we are working on that. 
Title: Re: ELI5 - The new shorting rules !!!by mere mortal so probably containing errors!!!
Post by: Method-X on September 30, 2014, 04:35:03 pm
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?
Title: Re: ELI5 - The new shorting rules !!!by mere mortal so probably containing errors!!!
Post by: tonyk on September 30, 2014, 05:08:30 pm
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
Title: Re: ELI5 - The new shorting rules !!!by mere mortal so probably containing errors!!!
Post by: Method-X on September 30, 2014, 05:11:19 pm
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.
Title: Re: ELI5 - The new shorting rules !!!by mere mortal so probably containing errors!!!
Post by: tonyk on September 30, 2014, 05:16:20 pm
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.
Title: Re: ELI5 - The new shorting rules !!!by mere mortal so probably containing errors!!!
Post by: Method-X on September 30, 2014, 05:28:37 pm
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?
Title: Re: ELI5 - The new shorting rules !!!by mere mortal so probably containing errors!!!
Post by: GaltReport on September 30, 2014, 05:32:26 pm
Is their a penalty for staying in a short position?  I thought I read something about that but I'm not sure.
Title: Re: ELI5 - The new shorting rules !!!by mere mortal so probably containing errors!!!
Post by: Method-X on September 30, 2014, 05:33:10 pm
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.
Title: Re: ELI5 - The new shorting rules !!!by mere mortal so probably containing errors!!!
Post by: tonyk on September 30, 2014, 05:41:28 pm
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...
Title: Re: ELI5 - The new shorting rules !!!by mere mortal so probably containing errors!!!
Post by: Method-X on September 30, 2014, 05:44:43 pm
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?
Title: Re: ELI5 - The new shorting rules !!!by mere mortal so probably containing errors!!!
Post by: Method-X on September 30, 2014, 05:46:04 pm
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.
Title: Re: ELI5 - The new shorting rules !!!by mere mortal so probably containing errors!!!
Post by: tonyk on September 30, 2014, 05:49:38 pm
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