Author Topic: How Is This Possible?  (Read 2920 times)

0 Members and 1 Guest are viewing this topic.

Offline Emma Lee

  • Jr. Member
  • **
  • Posts: 41
    • View Profile
  • BitShares: Bitcoin
Protection in low-liquidity markets, interesting. So it's to prevent the shorts from selling at a really bad price?

Offline armin

  • Full Member
  • ***
  • Posts: 133
    • View Profile
Ok this makes more sense, I'll have to read the BSIP to understand why this was the initial design

Offline pc

  • Hero Member
  • *****
  • Posts: 1530
    • View Profile
    • Bitcoin - Perspektive oder Risiko?
  • BitShares: cyrano
Actually the reason is different (I assume, it isn't spelled out anywhere AFAIK).
The price of the best offer is outside the margin call territory. If the feed price was where the internal market is, the call wouldn't be margin called.
Bitcoin - Perspektive oder Risiko? ISBN 978-3-8442-6568-2 http://bitcoin.quisquis.de

Offline armin

  • Full Member
  • ***
  • Posts: 133
    • View Profile
... However those margin calls are not executed because there are orders above the price feed .. It's a protection for short squeezes in low-liquid markets

This doesn't make sense lol, if there's bids above the price feed then executing the margin call is actually a good deal. How is it protecting against low-liquidity markets?

Offline armin

  • Full Member
  • ***
  • Posts: 133
    • View Profile
Protection in low-liquidity markets, interesting. So it's to prevent the shorts from selling at a really bad price?

Offline xeroc

  • Board Moderator
  • Hero Member
  • *****
  • Posts: 12922
  • ChainSquad GmbH
    • View Profile
    • ChainSquad GmbH
  • BitShares: xeroc
  • GitHub: xeroc
... However those margin calls are not executed because there are orders above the price feed .. It's a protection for short squeezes in low-liquid markets

Offline JonnyB

  • Hero Member
  • *****
  • Posts: 636
    • View Profile
    • twitter.com/jonnybitcoin
margin calls are punished with a bad price (feed - 10%) for not manually closing positions or maintaining collateral.
I run the @bitshares twitter handle
twitter.com/bitshares

Offline armin

  • Full Member
  • ***
  • Posts: 133
    • View Profile
Figured it out, seems like is a bug and will be fixed next hard fork.

Offline armin

  • Full Member
  • ***
  • Posts: 133
    • View Profile


The margin call price is lower than the highest bid, shouldn't it get filled automatically?