Author Topic: What exactly happens when margin falls below the call amount?  (Read 2759 times)

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Offline cylonmaker2053

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yes,



the only addition to the guide now is :

Margin Call will trigger only if the feed price is above the Short's Quality-of-Punishment Ratio (SQPR)

ha, thanks. actually i didn't notice a minimum SQPR that triggers the margin call. What is that ratio in practice? is it the same for every asset?

witness determined; mostly 1.1 now

http://cryptofresh.com/a/BTC
= SQP/100

Great, thank you for the reference!

Offline tonyk

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yes,



the only addition to the guide now is :

Margin Call will trigger only if the feed price is above the Short's Quality-of-Punishment Ratio (SQPR)

ha, thanks. actually i didn't notice a minimum SQPR that triggers the margin call. What is that ratio in practice? is it the same for every asset?

witness determined; mostly 1.1 now

http://cryptofresh.com/a/BTC
= SQP/100
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline cylonmaker2053

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yes,



the only addition to the guide now is :

Margin Call will trigger only if the feed price is above the Short's Quality-of-Punishment Ratio (SQPR)

ha, thanks. actually i didn't notice a minimum SQPR that triggers the margin call. What is that ratio in practice? is it the same for every asset?

Offline tonyk

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yes, and the actual buy price moves  with Short's Quality-of-Punishment Ratio (SQPR) above the current feed price.



the only addition to the guide now is :

Margin Call will trigger only if the feed price is above call price.

[edit] mistakes and clarification.
« Last Edit: February 22, 2016, 06:26:14 pm by tonyk »
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline cylonmaker2053

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http://docs.bitshares.eu/bitshares/user/dex-margin-mechanics.html

Great guide btw, never read it before + 1 ; some truths you will never see mentioned anywhere.(more likely to see wrong assurances it ain't so)

Awesome, thank you! The only thing i'm not seeing is what happens when the call amount is greater than the lowest ask amount? will the automated buy order just keep executing up the order book until completely filled?

Offline tonyk

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http://docs.bitshares.eu/bitshares/user/dex-margin-mechanics.html

Great guide btw, never read it before + 1 ; some truths you will never see mentioned anywhere.(more likely to see wrong assurances it ain't so)

Not sure if it covers (the newer) feed/call price condition though.
« Last Edit: February 22, 2016, 06:12:05 pm by tonyk »
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline cylonmaker2053

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What exactly is the minimum margin ratio below which short positions are called? And what exactly happens at this point? Are our positions reversed and liquidated at the settlement price, or are they simply put on the market with a bid equal to settlement, or series of lowest asks that'll fulfill the order?