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

[lelemago]

amazing 

[fallinglantern]

Lots of volume on huobi today.

[holzer]

Lots of volume on huobi today.

Even more on OKCoin.

[JayJuanGee]

In other words, this is NOT a set percentage, but instead based on how much leverage you used....? The lower the leverage ratio, the longer it will be allowed to run before being forced to close; however, if an trader uses a high leverage ratio, then it will be forced to close much sooner (b/c the collateral gets eaten up more quickly)?

When the collateral value drop lower than the borrowed asset value, plus 15%.
The thing is complicated from the fact that one can use bitcoin as collateral, so that as the price change the collateral value change too.

Let's do math

John goes short at 450$. His collateral is 450$ (let's assume, to simplify). He short 3 BTC (1350$).
The price goes to 575$. Now to close his position he need to buy 3 BTC (1725$). John's position is in red of 375$.
When his P/L reach -382.5$, poor John will be margin-called. That will happen, in this case, at price 577.5$.

Thank you.  I feel that I do NOT completely understand what you said, but I see that in this case, John's position will be forced to close at 128.3%... So then the exchange receives 1) 15% of the collateral item or 2) they receive 85% of the collateral item plus 15% additional fee, which means that the exchange receives the whole collateral item? 

It seems that the exchange would receive 2, no?  the reason that I say this is b/c in order to fulfill the short of BTC that John did NOT have, the exchange had to take that loss, no?  That bet had to have been made by the exchange while it was holding John's 3 BTC as collateral, no?

[grappa_barricata]

[hyphymikey]

I wouldn't be surprised if Wall Street didn't analyze all the leaked Gox trade data and all the easily available trade data, and is now fucking us over. Well, everyone but hodlers. First a long squeeze, now a short squeeze.

[JayJuanGee]

I am relatively bullish on Bitcoin mid-term. I believe we will be above 530 a week from now. 700 or more is a possibility by December 31, barring any huge Black Swan events.

I suspect we might enter 2015 somewhat on the plus side of $600.
$800 or more can be reached by the end of 2015.

But a lot of unforeseen events might drive price lower.

HAhaahahahaha... That is a bear-ish as fuck prediction.           

[adamstgBit]

Anybody got any coal to fuel this choo choo?

its on its way,

<- this alpaca plans to buy large dips no matter what the price, because honey badger don't care and schooling newbie bearishness is fun.

[grappa_barricata]

In other words, this is NOT a set percentage, but instead based on how much leverage you used....? The lower the leverage ratio, the longer it will be allowed to run before being forced to close; however, if an trader uses a high leverage ratio, then it will be forced to close much sooner (b/c the collateral gets eaten up more quickly)?

When the collateral value drop lower than the borrowed asset value, plus 15%.
The thing is complicated from the fact that one can use bitcoin as collateral, so that as the price change the collateral value change too.

Let's do math

John goes short at 450$. His collateral is 450$ (let's assume, to simplify). He short 3 BTC (1350$).
The price goes to 575$. Now to close his position he need to buy 3 BTC (1725$). John's position is in red of 375$.
When his P/L reach -382.5$, poor John will be margin-called. That will happen, in this case, at price 577.5$.

Thank you.  I feel that I do NOT completely understand what you said, but I see that in this case, John's position will be forced to close at 128.3%... So then the exchange receives 1) 15% of the collateral item or 2) they receive 85% of the collateral item plus 15% additional fee, which means that the exchange receives the whole collateral item?  

It seems that the exchange would receive 2, no?  the reason that I say this is b/c in order to fulfill the short of BTC that John did NOT have, the exchange had to take that loss, no?  That bet had to have been made by the exchange while it was holding John's 3 BTC as collateral, no?

Nonono, the exchange is not at risk*, nor the lender (of bitcoin in this case). At any moment John can lose at max 85% of his collateral, plus slippage (eg: he got margin-called at 577.5$, but his order executed at an average price of 579$). The 15% margin (that give the name to the whole practice) is used to cover this slippage, so if the slippage is smaller than 15% then there is no risk for the lender nor the exchange.

In this case, John's margin-call order would have to be executed at an average price of 664$ for his lender (or the exchange) to lose anything.

I hope it's more clear.

[adamstgBit]

[X7]

[ZeroEnergy]

Alpaca 9001

[Walsoraj]

Train shall continue when China awakes. Get on or get left behind.

ahem.

[ChartBuddy]

Explanation

[abercrombie]

Green candles!  

[rjp55]

Mmmmitech buy back in yet? Lol

[Davyd05]

when is the knife that is going to hit the ceiling and come down.. or break through...is this the wave of non lazy people grabbing coins at what they consider undervalued? a wave of new investors thinking similarly

[hyphymikey]

OKCoin leading the way. Dat volume!

[Riddikulo]

[hyphymikey]

things gonna get interesting if we get to the 550 region, mountains of fiat + rock bottom longs + short squeeze + tiny ask side.

THE PERFECT STORM