Quote from: Troglodactyl on October 20, 2015, 12:37:59 pm

Quote from: svk on October 19, 2015, 06:04:55 am

I've removed the Fee Rate since it was just confusing in the Exchange, for the record it's the price at which an asset, say USD, will be converted to BTS in order to pay for fees.

The settlement price is the price which used to be called the Feed Price.

The Margin Call Price is the Settlement Price * Squeeze Protection Ratio (initially at 1.5, now somewhere around 1.1)

Your margin position will get margin called if the call price of the position falls below the margin call price.

2. Margin calls are triggered by the price of the cheapest available asset on the internal market, not by the feed price.  When a margin call is triggered, the collateral will be used to buy any of the asset that's available for sale cheaper than [feed price * maximum short squeeze ratio] to cover the position.  It will not touch any other assets in the users account, even if they could be used to cover the position.

This isn't a complete answer, but I hope it helps.

This is almost correct except for the following:

1. Margin called orders will not buy the cheapest assets available, they will only buy within the range from their call price to the margin call price

2. They won't buy anything at all if there is a sell order below the above range

As an example, say the feed price of USD is 200, margin call price is 300. A sell order is on the books at 225, one call order is margin called at 275.

Result: nothing.

Someone tries to sell at 299: still nothing.

The sell at 225 is cancelled: the margin called order fills immediately at 299.

Imo this is crazy and the margin order should be allowed to buy USD down to the feed price if any is available.

It should also use any USD the holder has in their balance instead of being forced to buy on the open market at a premium.

 i think this makes a lot of sense:

1. any USD the account has should be used to settle the account (the goal is to protect the asset not screw the shorter)

2. whatever USD the shorter needs to cover should be bought at the cheapest way possible as long as its below margin call price.

3. If the margin call price of the market  is above the margin call price of the holder the asset holder should be forced to buy USD at the price of its margin call price or better if possible (i.e. 225 in the example above) and never at 299.

Hello,

here is a way that would make me dump a lot of value into this eco system.

One of the things i like about bitcoin is the flexibility it provides when it comes to trading it. I have an account at trade wave that lets me buy and sell bitcoin according to a strategy i can define myself.

So if i want to define a strategy that:

a) buys an asset when price is above a certain Moving Average (MA)
b) sells the asset when the price is below the MA

Now this is just an example and you can define any strategy and use the APIs of exchanges to trigger the sells.

This is all nice and sweet and demonstration of the power of bitcoin.

What i would really like to do however is apply this to our existing markets. In order words i would like to have a way to go long on the DJI and short depending on such an automated strategy.


In order for this to work with bitshares we need two things:

1) we need assets that track these assets (i.e. DJI)
2) we need a way to automatically buy sell or go long and short on these assets.

Ideally i would envision 2) to be some sort of smart contract feature in bitshares, alternatively it could be handled via APIs and trusting 3rd party apps to do the work.

This would be in my opinion really valuable to think about because it could actually give people who could not care less about crypto a reason to dumb a whole lot of value into the space.

As an example I am a big fan of bitshares, but i am hesitant to dumb a whole lot of value into it. I have a bunch of value in bitcoin, but it is protected via these trading strategies (essentially i am banking on the volatility of bitcoin)

For me in order for value to flow into the bitshares space we need applications that are useful for the mass market. This trading/investment application could be one application i could imagine to provide that reason to bring money over into bitshares. Of course there are other application opportunities.

I look forward what bitshares will bring in the future.

I've removed the Fee Rate since it was just confusing in the Exchange, for the record it's the price at which an asset, say USD, will be converted to BTS in order to pay for fees.

The settlement price is the price which used to be called the Feed Price.

The Margin Call Price is the Settlement Price * Squeeze Protection Ratio (initially at 1.5, now somewhere around 1.1)

Your margin position will get margin called if the call price of the position falls below the margin call price.

First off. Thank you for this answer. I have learned a bit from your answers, but i am still a bit confused.

1. I do not understand the fee rate. I cannot imagine why there is a fee or what it is for. Does this account for the penalty that we pay when we get margin called of 5%. Is that what this fee represents? Could you explain this fee please.

2. I understand that when we loan USD into existence we need to put up collateral of 1.75 the value. If i understand correctly should the price change so much that our collateral becomes less than the margin call price  (1.1) we would get margin called. That means our position would be closed, the collateral would be used to force us to buy the USD we need to close the position. I don't understand the price that would be used and who would sell us the USD. Is it so that we would simply get the best price at the market?  So whoever has put up the best sell price for the amount of USD that we need to close the position would get our BTS from our collateral. What happens if the collateral is less than the best sell price? Or if there is no seller? What would happen if we had USD on our account. Would I simply use the USD from my account and get my collateral back?

It worked when i exported the keys via chrome vs safari

Here is what i did:

1. logged into wallet.bitshares.org Was able to export my keys. The result was json that was displayed in browser. I copied this code into textwarangler and saved as myKeys.json
2. I imported the file in the client in 2.0 via web interface. I used my wallet password as the encryption password. The result is a blank page 404
3. I did the same import via the light client and the result is a blank page. I have to close client and re-open

Is the import working in general via the GUI at all? how come i get some blanc page vs an error message?

Am i doing something wrong?

bump

For a pegged asset:

What is the call price and how is it determined?

I was just able to sell 5 USD at a price that was way above what i thought the market price was.

The front end provides 3 prices for the USD asset. Is there a place this is defined or can someone explain it?

Fee Rate
219.73947
BTS/USD

Settlement Price
209.27632
BTS/USD

Margin Call Price
313.91447
BTS/USD

Mhh yes it looks that way. However why did margin call kick in when the price never changed and the collateral was way out there? Again the price is 220 and has been all day. And there was more than 200% collateral.

This looks quite broken.