Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

[inca]

What happens to Bitfinex if the long squeeze comes and the bids get wiped? Will the dollar lenders lose their money if the longs are unable to close?

I certainly hope so, otherwise why would they get paid 30% if there was no risk involved ?

It would be assuring for everyone with any money on Bitfinex to know what their policy is in this situation. They could haircut everyone, including exchange accounts, or go gox for all I know.

Dont be silly.

[bad trader]

What happens to Bitfinex if the long squeeze comes and the bids get wiped? Will the dollar lenders lose their money if the longs are unable to close?

I certainly hope so, otherwise why would they get paid 30% if there was no risk involved ?

It would be assuring for everyone with any money on Bitfinex to know what their policy is in this situation. They could haircut everyone, including exchange accounts, or go gox for all I know.

Dont be silly.

They shouldn't do that, but how would I know what they plan to do? Maybe they'll flee the country with all the remaining customer money.

[noobtrader]

i feel something big is coming and mega-pump seems imminent, news are talking bitcoin again http://www.cnbc.com/id/102594745

[damiano]

What happens to Bitfinex if the long squeeze comes and the bids get wiped? Will the dollar lenders lose their money if the longs are unable to close?

Thats an excellent question.

I can't see anything on the website talking about this, but if orders cannot be filled while being liquidated I would assume the lender would be at a loss then, unless there is an insurance fund available to cover this or bitfinex would cover the difference?

Okcoin has a pretty good engine when it comes to liquidation, they also have an insurance fund.  The shitty thing is on Okcoin they will prioritize high risk positions and prematurely liquidate them earlier than they should.  I was force liquidated a month ago $1 early.

Sorry about the loss, but thank lord you can be wrong. I've been biting nails all morning.

I absolutely could be. 

I just can't find any proper information if such an event were to occur.  I would assume bitfinex would cover the difference, but if its not stated then I would assume the lenders would get a % back of the funds lent.

[ChartBuddy]

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Explanation

[noobtrader]

What happens to Bitfinex if the long squeeze comes and the bids get wiped? Will the dollar lenders lose their money if the longs are unable to close?

Thats an excellent question.

I can't see anything on the website talking about this, but if orders cannot be filled while being liquidated I would assume the lender would be at a loss then, unless there is an insurance fund available to cover this or bitfinex would cover the difference?

Okcoin has a pretty good engine when it comes to liquidation, they also have an insurance fund.  The shitty thing is on Okcoin they will prioritize high risk positions and prematurely liquidate them earlier than they should.  I was force liquidated a month ago $1 early.

Sorry about the loss, but thank lord you can be wrong. I've been biting nails all morning.

I absolutely could be. 

I just can't find any proper information if such an event were to occur.  I would assume bitfinex would cover the difference, but if its not stated then I would assume the lenders would get a % back of the funds lent.

 

i think he said that because you was a bear and keep shorting on bitcoin   

[Norway]

Why is Bitfinex so bearish compared to others?

That. BTC-E is normally $5-10 under finex.

It's been almost $2 between Huobi and Bitfinex for a couple of days. I have been thinking for a while about starting arbitrage trading. I don't believe in TA (Asstrology) and I can't predict the future. Also, it's easy and cheap to move BTC between exchanges (but not other currencies, could be a disadvantage). I have never traded on an exchange before (I just bought my bitcoins from a guy), yet I watch Bitcoinwisdom and am capable of coding my own user interface with the exchanges APIs. I don't want to make a "bot" (even if I actually could, given time and money), but more like a button I can press when two exchanges are in disharmony (One sell, one buy, same amount of BTC).

My question is: Do anybody in this thread have experience with arbitrage trading? Are the margins too small?

There it is. Now, time for "FRIDAY NIGHT VODKA PARTY ALONE IN A TWO ROOM FLAT IN THE SUBURBS OF OSLO"!!! Whoohoooooo!   

most likely the margin only cover trading fee, not mention the witdrawal fee if you insist to withdraw the coin too

Thanks for your response, sir! As you write "Most likely..", I assume that you have not done this yourself. But I think everybody in this thread believes arbitrage trading IS happening. For a reason. I know there are fees, but have anybody else here experience with this style of trading? Maybe it's such a good concept that you don't talk public about it, or even bother to visit this forum? He he.
SKÅL!!!

[sleger]

I just can't find any proper information if such an event were to occur.  I would assume bitfinex would cover the difference, but if its not stated then I would assume the lenders would get a % back of the funds lent.

They do not have a policy, they will decide what to do when that happens based on how big the loss is.

It DID happen one in the past and the loss was small enough they could take it and they took the loss, otherwise their exchange would be dead (all customers would have gone). So next time they might do it if the loss is not too big, but bitfinex does not have 25m$ of reserves, nor would they want to give it away should this happen.

In case of strong flash crash, only part of the lending money would be lost anyways, so lenders would take a haircut if Bitfinex can not / does not want to absorb the loss. But then again, it is completely normal, otherwise they should get 0.25%APR on their money, not ~30% !!

[damiano]

What happens to Bitfinex if the long squeeze comes and the bids get wiped? Will the dollar lenders lose their money if the longs are unable to close?

Thats an excellent question.

I can't see anything on the website talking about this, but if orders cannot be filled while being liquidated I would assume the lender would be at a loss then, unless there is an insurance fund available to cover this or bitfinex would cover the difference?

Okcoin has a pretty good engine when it comes to liquidation, they also have an insurance fund.  The shitty thing is on Okcoin they will prioritize high risk positions and prematurely liquidate them earlier than they should.  I was force liquidated a month ago $1 early.

Sorry about the loss, but thank lord you can be wrong. I've been biting nails all morning.

I absolutely could be. 

I just can't find any proper information if such an event were to occur.  I would assume bitfinex would cover the difference, but if its not stated then I would assume the lenders would get a % back of the funds lent.

 

i think he said that because you was a bear and keep shorting on bitcoin   

When I got liquidated I was bullish 

win some and lose some 

[Fatman3001]

What happens to Bitfinex if the long squeeze comes and the bids get wiped? Will the dollar lenders lose their money if the longs are unable to close?

Thats an excellent question.

I can't see anything on the website talking about this, but if orders cannot be filled while being liquidated I would assume the lender would be at a loss then, unless there is an insurance fund available to cover this or bitfinex would cover the difference?

Okcoin has a pretty good engine when it comes to liquidation, they also have an insurance fund.  The shitty thing is on Okcoin they will prioritize high risk positions and prematurely liquidate them earlier than they should.  I was force liquidated a month ago $1 early.

Sorry about the loss, but thank lord you can be wrong. I've been biting nails all morning.

I absolutely could be.  

I just can't find any proper information if such an event were to occur.  I would assume bitfinex would cover the difference, but if its not stated then I would assume the lenders would get a % back of the funds lent.

  

i think he said that because you was a bear and keep shorting on bitcoin    

I think so too, I have nothing at finex or OkCoin atm.

Edit:

When I got liquidated I was bullish  

win some and lose some  

[tomothy]

Why is Bitfinex so bearish compared to others?

That. BTC-E is normally $5-10 under finex.

It's been almost $2 between Huobi and Bitfinex for a couple of days. I have been thinking for a while about starting arbitrage trading. I don't believe in TA (Asstrology) and I can't predict the future. Also, it's easy and cheap to move BTC between exchanges (but not other currencies, could be a disadvantage). I have never traded on an exchange before (I just bought my bitcoins from a guy), yet I watch Bitcoinwisdom and am capable of coding my own user interface with the exchanges APIs. I don't want to make a "bot" (even if I actually could, given time and money), but more like a button I can press when two exchanges are in disharmony (One sell, one buy, same amount of BTC).

My question is: Do anybody in this thread have experience with arbitrage trading? Are the margins too small?

There it is. Now, time for "FRIDAY NIGHT VODKA PARTY ALONE IN A TWO ROOM FLAT IN THE SUBURBS OF OSLO"!!! Whoohoooooo!   

Just to add to the question. Would it make sense to use litecoin to transfer money from one exchange to another without using fiat?

Arguably yes, the possibility exists of the funds being accepted and confirmed faster w/ ltc than btc. However on the few occasions I've tried with this, the LTC transfers have been sufficiently delayed for whatever reason close the window on any said opportunity. Likewise not all exchanges accept LTC and offer that arbitrage opportunity. Theoretically it makes a lot of sense and I've heard (as I'm sure we all have) of users successfully rotating through such a system for small profits.

[derpinheimer]

Why are many of you suddenly concerned about a long squeeze?

[Norway]

Why is Bitfinex so bearish compared to others?

That. BTC-E is normally $5-10 under finex.

It's been almost $2 between Huobi and Bitfinex for a couple of days. I have been thinking for a while about starting arbitrage trading. I don't believe in TA (Asstrology) and I can't predict the future. Also, it's easy and cheap to move BTC between exchanges (but not other currencies, could be a disadvantage). I have never traded on an exchange before (I just bought my bitcoins from a guy), yet I watch Bitcoinwisdom and am capable of coding my own user interface with the exchanges APIs. I don't want to make a "bot" (even if I actually could, given time and money), but more like a button I can press when two exchanges are in disharmony (One sell, one buy, same amount of BTC).

My question is: Do anybody in this thread have experience with arbitrage trading? Are the margins too small?

There it is. Now, time for "FRIDAY NIGHT VODKA PARTY ALONE IN A TWO ROOM FLAT IN THE SUBURBS OF OSLO"!!! Whoohoooooo!   

Just to add to the question. Would it make sense to use litecoin to transfer money from one exchange to another without using fiat?

I don't think it's any point in going in and out of shapeshift to convert BTC => Litecoin => BTC when doing arbitrage. Maybe I don't understand what you mean, fellow viking!  

[Fatman3001]

Why is Bitfinex so bearish compared to others?

That. BTC-E is normally $5-10 under finex.

It's been almost $2 between Huobi and Bitfinex for a couple of days. I have been thinking for a while about starting arbitrage trading. I don't believe in TA (Asstrology) and I can't predict the future. Also, it's easy and cheap to move BTC between exchanges (but not other currencies, could be a disadvantage). I have never traded on an exchange before (I just bought my bitcoins from a guy), yet I watch Bitcoinwisdom and am capable of coding my own user interface with the exchanges APIs. I don't want to make a "bot" (even if I actually could, given time and money), but more like a button I can press when two exchanges are in disharmony (One sell, one buy, same amount of BTC).

My question is: Do anybody in this thread have experience with arbitrage trading? Are the margins too small?

There it is. Now, time for "FRIDAY NIGHT VODKA PARTY ALONE IN A TWO ROOM FLAT IN THE SUBURBS OF OSLO"!!! Whoohoooooo!   

Just to add to the question. Would it make sense to use litecoin to transfer money from one exchange to another without using fiat?

I don't think it's any point in going in and out of shapeshift to convert BTC => Litecoin => BTC when doing arbitrage. Maybe I don't understand what you mean, fellow viking!  

Well, arbitrage in BTC only will be tricky. And fiat is too expensive to move.

[SkyValeey]

i feel something big is coming and mega-pump seems imminent, news are talking bitcoin again http://www.cnbc.com/id/102594745

mega pump? lol

[Torque]

i feel something big is coming and mega-pump seems imminent, news are talking bitcoin again http://www.cnbc.com/id/102594745

mega pump? lol

Notice the fine print:
"Genesis hopes that rebranding as its own entity will help the firm gain new clients", he added.

Translation:
"We've been laughed out of town as SecondMarket, so we decided to rebrand ourselves as Genesis and hope no one notices."  

[gizmoh]

Why are many of you suddenly concerned about a long squeeze?

They sold and are lending $ to bulls ( in denial ) at tempting rates , now worrying about their funds! 

[bad trader]

Why are many of you suddenly concerned about a long squeeze?

I've been concerned about it for a while. There are 25 million dollars of longs on Bitfinex. That's over 100 thousand bitcoins that need to be sold at the current price to close them. There does not seem to be bids for that many coins on all the exchanges combined at any price. And if the price goes lower, more coins need to be sold.

The other posters are paid by NotLambChop to talk about this.

edit: Some of those longs might be in altcoins, I guess, but if even half of them are in bitcoins, it still seems excessive to me.

[Norway]

i feel something big is coming and mega-pump seems imminent, news are talking bitcoin again http://www.cnbc.com/id/102594745

I share your feeling!

I have a bold prediction that something BIG is happening on monday. And I am (semi) ready to take the shitstorm if I'm wrong monday evening. It's a gut feeling based on a small list of facts:

1. President of USA candidate Rand Paul is attending on a bitcoin (or blockchain, ha ha) event on sunday. These candidates tend to time their PR campaigns with very good inside information.

2. "Wall Street enters bitcoin" is so f*cking ripe now.

    2A: COIN ETF on NASDAQ waiting for two years for approval with a experienced and competent woman running the process ("Spider Woman" Kathleen Moriarty).

    2B: GBTC with investment bank bidders hanging for weeks.

    2C: Facetwins (again) having the logistics ready months ago for Gemini bitcoin exchange, but waiting for BitLicense.

    2D: NYDFS Expects Final BitLicense 'Very Soon'.

    2E: The evil witch Blythe Masters (her "credit swap" invention kicked a lot of good americans out of their homes and into the trailer park) has joined bitcoin trading platform Digital Assets Holdings LLC as chief executive.

    2F: Headline: "Nasdaq Trading Technology to Power Bitcoin Marketplace Noble" (To drunk to explain in my own words).

    2G: Headline: "SecondMarket's Bitcoin Desk Relaunches as Genesis Trading" (Again, drunk to explain in my own words).

We all know that good news is bad for bitcoin price. But these news are all related to a greedy need for bitcoin (just in case it actually becomes important!) and a real demand you will see on the exchanges.

Long story short: I'm really becomming a Vodka Viking now, and I'm proud of coining the expression "Facetwins"! (Better than "Winklevii" or "Facebook Twins", ha ha.)

SKÅL!

[ChartBuddy]

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