BitShares Forum

Main => General Discussion => Topic started by: tonyk on June 07, 2014, 05:05:45 pm

Title: How is the forced cover order planned to work exactly?
Post by: tonyk on June 07, 2014, 05:05:45 pm

I can see at least 2 ways the forced cover order working:

1. cover as much as possible of the position at whatever the best ask is (leaving potentially part of the position not covered).

2. cover at price Pc <=  price that will cover the whole short position (leaving potentially the whole order unfulfilled until a point in time that the price of bitAssets is below or equal to Pc).

Which one of those it is gonna be, or explain if it is supposed to be something different.

Title: Re: How is the forced cover order planned to work exactly?
Post by: bytemaster on June 07, 2014, 08:47:59 pm

Quote from: tonyk on June 07, 2014, 05:05:45 pm

I can see at least 2 ways the forced cover order working:

1. cover as much as possible of the position at whatever the best ask is (leaving potentially part of the position not covered).

2. cover at price Pc <=  price that will cover the whole short position (leaving potentially the whole order unfulfilled until a point in time that the price of bitAssets is below or equal to Pc).

Which one of those it is gonna be, or explain if it is supposed to be something different.

We cover as much as possible at the best ask up to a maximum price of 2x the initial position price.  After that there is an open order on the books until someone that is long accepts the 2x price.