Author Topic: Buy/Short Walk me through in the chat  (Read 1979 times)

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Offline theoretical

Re: Buy/Short Walk me through in the chat
« Reply #15 on: September 15, 2014, 08:54:38 am »

I think it's actually kind of irresponsible to tell people what buttons to click in order to short, without also making some attempt to teach them the economic implications of leverage and the practical mechanics of covering and margin calls.

I myself was very confused at first.  I've been active here since very early days and I'm very comfortable with the economic theory behind all of this, but before I started actually doing shorts, I once wrongly thought:

- You would be able to close the position by using collateral to purchase BitUSD (you can't, using collateral to cover only happens when you are margin called and incur 5% fee)
- Partial margin cover would free up a proportional amount of collateral (it doesn't, all collateral is locked until the debt is paid in full)
BTS- theoretical / PTS- PZxpdC8RqWsdU3pVJeobZY7JFKVPfNpy5z / BTC- 1NfGejohzoVGffAD1CnCRgo9vApjCU2viY / the delegate formerly known as drltc / Nothing said on these forums is intended to be legally binding / All opinions are my own unless otherwise noted / Take action due to my posts at your own risk

38PTSWarrior

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Re: Buy/Short Walk me through in the chat
« Reply #16 on: September 15, 2014, 02:37:53 pm »
But only "kind of". Because I am winning anyway at the end (4 years) if I now chose only 1/10th of my money to learn the game I would get the skills to take another part and make that more. But by reading about collateral, margin etc.? This will take forever, because I ususually learn computer games like this: restart restart restart.