Author Topic: Followup to yesterday's hangout  (Read 6876 times)

0 Members and 1 Guest are viewing this topic.

Offline yvv

  • Hero Member
  • *****
  • Posts: 1186
    • View Profile
Quote
The MSSR provides an incentive to both traders and shorters to work towards that goal:

    For the owner of the short position, the MSSR is a penalty. This encourages him to always provide sufficient collateral.
    For the trader, the MSSR is an incentive to sell bitUSD, because the margin call pays more than the settlement price.

Everything is vise versa actually. MSSR protects the owner of short position, since it puts a limit on a price at which the borrowed asset is bought back when margin call is triggered. For the trader this limit is not good, because it does not allow to sell at better price.

Offline pc

  • Hero Member
  • *****
  • Posts: 1530
    • View Profile
    • Bitcoin - Perspektive oder Risiko?
  • BitShares: cyrano
Bitcoin - Perspektive oder Risiko? ISBN 978-3-8442-6568-2 http://bitcoin.quisquis.de