Author Topic: Add "close long" feature?  (Read 416 times)

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Offline bitcrab

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Add "close long" feature?
« on: March 28, 2019, 07:08:05 am »
Now when a debt position owner need to sell some collateral to reduce debt, he need to firstly withdraw some collateral from the debt position with reducing the CR and then he can sell the collateral and then pay debt.

Firstly, several steps are needed to complete this "close long" operation, inconvenient.
secondly, this add more risk to the system. withdrawing some BTS from the debt position clearly increase the risk of margin call. one need to decrease risk by selling collateral and pay debt, but he need firstly increase the risk, reluctant?

So I greatly advise to add a "close long" feature, within this feature one can place sell orders to sell the BTS collateral inside the debt position, when the sell order is partly or completely filled, the got smartcoins will be used to reduce the debt automatically.

Any relevant development plan on this?

 

Offline sschiessl

Re: Add "close long" feature?
« Reply #1 on: March 28, 2019, 08:35:54 am »
I suppose what could be easily integrated is that you are allowed to trigger a margin call of your position that has no penalty and will appear as a normal order on the order book with the price you have specified. There must be restrictions on the price to ensure that every matched order does not decrease the CR.

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Offline Thul3

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Re: Add "close long" feature?
« Reply #3 on: March 28, 2019, 11:33:03 am »
Support it fully.
It totaly makes sense for all debt holders who are near margin call when reducing debt its sometimes a pain.
For example if you have a ratio of 1.77 and want to reduce risk you need to lower first your CR to 1.755 for example and sell on open market the small amount of BTS which gets free to pay debt to get a bigger amount of BTS to be able to sell on open market till you met your desired CR.

It's sometimes a big pain when market is moving quickly.

Offline matle85

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Re: Add "close long" feature?
« Reply #4 on: March 28, 2019, 02:53:10 pm »
Really sensible suggestion - 100% support.

Offline pc

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Re: Add "close long" feature?
« Reply #5 on: March 28, 2019, 03:41:10 pm »
Note that this can be done client-side with no risk for margin call, at least in the case where you sell into the order book (i. e. as a taker only). Just wrap the required operations into a single transaction and mark the sell order as "fill-or-kill".
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Offline sschiessl

Re: Add "close long" feature?
« Reply #6 on: March 28, 2019, 07:28:55 pm »
Note that this can be done client-side with no risk for margin call, at least in the case where you sell into the order book (i. e. as a taker only). Just wrap the required operations into a single transaction and mark the sell order as "fill-or-kill".

That assumes that you have enough buffer to do that, but it's not feasible if your buffer is small (e.g. CR 1.80) or already margin called. The bsip allows to set an order even below a margin call to close position if desired

Offline pc

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Re: Add "close long" feature?
« Reply #7 on: March 28, 2019, 08:08:29 pm »
If your buffer is small you can do this repeatedly (even within a single transaction).

If you've already been margin called you can only get out by paying more than MSSR. This would have the effect of increasing the premium, and it would use up the available collateral more quickly. Not sure if either is desirable.
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Offline Crypto Kong

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Re: Add "close long" feature?
« Reply #8 on: April 02, 2019, 09:56:15 pm »
Good idea

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Offline jackingyang

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Re: Add "close long" feature?
« Reply #9 on: April 03, 2019, 09:58:00 am »
Good idea
Support it fully.

Offline okpy

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Re: Add "close long" feature?
« Reply #10 on: April 03, 2019, 10:33:24 am »
Support!