[ANN] BTC.sx - Leveraged trading made easy

[wonkytonky]

ok.. i'm trying to get my head around this pip thing..

i took your long example from the faq.
correct me where i'm wrong and please help me where i dont understand it.

    Bet size: 0.002 BTC/pt

so i say.. here: for every pt (wich is 1 $cent so .. 0.01$) that goes up.. i want btc.sx to pay me 0.002btc
(deposit of 2 BTC required)

this is:Deposit = Size * Required Stop

The required stop is currently 1250 points. Th

in this case 0.002 btc * 1250 points?  seems not to be 2btc but it's my best guess..

    Buy Price: US$120 = 12000 points
this is 120$*100 because points are actuall $cents.

    Close price on liquidation: US$128 = 12800 points
this is 128$*100 because points are actuall $cents.

    Profit = (12000 - ((12000^2) / 12800)) * 0.002
i dont understand this calculation please fully explain.

    Profit = 1.5 BTC




other questions..
can you show us how much btc or usd is borrowd if we place an 0.002btc/pt bet?  i'm not fully understanding how leverage works here.. x100 ?
so if i place bet 0.002btc/pt.. you automatically  borrow 100 times this amount in usd if i want to go long? and on this the daily fund  is calculated?   how?

Execution Spread:  if you need to borrow btc .. where do you get it, gox??  since it apparently could be  problematic when there is " high volatility or low liquidity"  i want to know where to look to see if indeed the liquidity is low or the volatility is too high .

what is the current maximum betsize?
where do you get your current prices from?


and please make "stop order" one of your biggest priorities possible   a realy great example is the one from bitfinex.. you can move it up and down whenever you want..   with bitcoins volatility..  a few hours away from screen could be problematic...

regards

bump..

please answer my questions

i'll add another question.

 why is the spread so high?

[myself]

why is the spread so high?

the price u get is @ 500 BTC orderbook on gox

[Seal]

ok.. i'm trying to get my head around this pip thing..

i took your long example from the faq.
correct me where i'm wrong and please help me where i dont understand it.

    Bet size: 0.002 BTC/pt

so i say.. here: for every pt (wich is 1 $cent so .. 0.01$) that goes up.. i want btc.sx to pay me 0.002btc
(deposit of 2 BTC required)

this is:Deposit = Size * Required Stop

The required stop is currently 1250 points. Th

in this case 0.002 btc * 1250 points?  seems not to be 2btc but it's my best guess..

    Buy Price: US$120 = 12000 points
this is 120$*100 because points are actuall $cents.

    Close price on liquidation: US$128 = 12800 points
this is 128$*100 because points are actuall $cents.

    Profit = (12000 - ((12000^2) / 12800)) * 0.002
i dont understand this calculation please fully explain.

    Profit = 1.5 BTC




other questions..
can you show us how much btc or usd is borrowd if we place an 0.002btc/pt bet?  i'm not fully understanding how leverage works here.. x100 ?
so if i place bet 0.002btc/pt.. you automatically  borrow 100 times this amount in usd if i want to go long? and on this the daily fund  is calculated?   how?

Execution Spread:  if you need to borrow btc .. where do you get it, gox??  since it apparently could be  problematic when there is " high volatility or low liquidity"  i want to know where to look to see if indeed the liquidity is low or the volatility is too high .

what is the current maximum betsize?
where do you get your current prices from?


and please make "stop order" one of your biggest priorities possible   a realy great example is the one from bitfinex.. you can move it up and down whenever you want..   with bitcoins volatility..  a few hours away from screen could be problematic...

regards

bump..

please answer my questions

i'll add another question.

 why is the spread so high?

Hi wonkytonky, apologies for the delayed response. I'll try my best to clear things up:

• In the example above the required stop was 1000 points. Apologies for the confusion I'll clarify that in the FAQ.
• The required stop is changes and depends on market volatility and liquidity. The smaller it is, the cheaper it is to place trades. On the other hand, I have to balance the in-house trading risk that comes with placing the leveraged position out to market. If the position gaps out of your favour beyond the deposit amount held, you will not be charged a loss greater then the deposit amount (posted collateral) - btc.sx takes on this risk
• In market making, amounts are measured in points and pips and ticks. BTC.sx uses points, which in this case will denominate the price in US cents
• Execution spread refers to the difference in the display price and the actual traded price (after the order has been executed).
• Why is the spread so high? It isn't. The prices will incorporate the broker trading fee (as orders are placed out to market) and a conservative execution spread. The spread is added so that the actual execution price will often beat the display price (under normal market liquidity - at times of high volatility, it will match and sometimes be worse then display price).

A number of users have emailed the support address asking about what happens to the bitcoins they lose when trading on BTC.sx. Some users have the assumption that we take their bitcoins (as profit). This is not the case, we do not benefit from our users placing losing positions - they are less likely to place trades in the future.

If a position placed goes against your favour, the bitcoins have to be sold to cover the amount that we have lost when the leveraged trade is liquidated. This is handled automatically by the trading engine. It will not deduct more than the amount required to cover the loss in our trading reserve.

So where does the bitcoin go? Back out to market.

[Seal]

Also the actual trade size can be calculated using the following:

Size (BTC/pt) * Price (USD) * 100

or

Size (BTC/pt) * Price (US cents)

In the US, people call it leveraged trading, in Europe the term geared trading is more often used. The spreadsheet below shows the effective 'gearing' which is price dependent.

[myself]

A number of users have emailed the support address asking about what happens to the bitcoins they lose when trading on BTC.sx. Some users have the assumption that we take their bitcoins (as profit). This is not the case, we do not benefit from our users placing losing positions - they are less likely to place trades in the future.

a public log of all trades delayed with refresh time 5 min will be nice

[siulynot]

I just opened an account and i dont feel comfortable without stops and limits. Margin trading NEEDS these options when trading because there is no way someone can sleep happy without stops.

Also a public trades history would be nice, and of course an orderbook

[Hfleer]

I just opened an account and i dont feel comfortable without stops and limits. Margin trading NEEDS these options when trading because there is no way someone can sleep happy without stops.

Also a public trades history would be nice, and of course an orderbook

Nothing wrong with stops and limits.  These are mandatory though, maybe they can improve it and let the users set their own.

[myself]

+1 for stops and limit orders on the position field

[Seal]

I just opened an account and i dont feel comfortable without stops and limits. Margin trading NEEDS these options when trading because there is no way someone can sleep happy without stops.

Also a public trades history would be nice, and of course an orderbook

Nothing wrong with stops and limits.  These are mandatory though, maybe they can improve it and let the users set their own.

Hey there siulynot. Thanks for the feedback. A few users have requested this feature now and it is on our todo list so watch this space.

The trading volume has been steadily growing and is keeping us very busy lately. I'm working on growing the physical aspect of the business and will be committing to the full time development of it soon with other aspects such as an office space, full incorporation and staff coming soon.

Marketing the site and communicating what we do in a clear way has been challenging for me, I appreciate it could be a lot better. Its work in progress so I thank everybody for their patience and for the kind words of encouragement the users have left.

[capoeira]

I tryed your page today with 0,1 BTC....orders are not executing

[kakobrekla]

I tryed your page today with 0,1 BTC....orders are not executing

What a surprise.

[Seal]

I tryed your page today with 0,1 BTC....orders are not executing

What a surprise.

For the wider audience, I'd like to respond to each 'constructive criticism' kindly left by kakobrekla by a post regarding his own brokerage.

https://bitcointalk.org/index.php?topic=114821.msg1313315#msg1313315

Can I get an account so you can show me how its really done?

[Seal]

I tryed your page today with 0,1 BTC....orders are not executing

Trading volume has been incredibly high recently with our reserve maxing out a number of times this week. Apologies for the failed execution, I can see the position logs of each trade and will investigate each one with a fine toothed comb to see what happened.

Thanks for your patience.

[kakobrekla]

I tryed your page today with 0,1 BTC....orders are not executing

What a surprise.

For the wider audience, I'd like to respond to each 'constructive criticism' kindly left by kakobrekla by a post regarding his own brokerage.

https://bitcointalk.org/index.php?topic=114821.msg1313315#msg1313315

Can I get an account so you can show me how its really done?

Of course, follow instructions on site, like everyone else.

[capoeira]

I tryed your page today with 0,1 BTC....orders are not executing

Trading volume has been incredibly high recently with our reserve maxing out a number of times this week. Apologies for the failed execution, I can see the position logs of each trade and will investigate each one with a fine toothed comb to see what happened.

Thanks for your patience.

I still can't open position

[Seal]

I tryed your page today with 0,1 BTC....orders are not executing

Trading volume has been incredibly high recently with our reserve maxing out a number of times this week. Apologies for the failed execution, I can see the position logs of each trade and will investigate each one with a fine toothed comb to see what happened.

Thanks for your patience.

I still can't open position

What browser are you using?

[capoeira]

I tryed your page today with 0,1 BTC....orders are not executing

Trading volume has been incredibly high recently with our reserve maxing out a number of times this week. Apologies for the failed execution, I can see the position logs of each trade and will investigate each one with a fine toothed comb to see what happened.

Thanks for your patience.

I still can't open position

What browser are you using?

chromium

[capoeira]

I tryed your page today with 0,1 BTC....orders are not executing

Trading volume has been incredibly high recently with our reserve maxing out a number of times this week. Apologies for the failed execution, I can see the position logs of each trade and will investigate each one with a fine toothed comb to see what happened.

Thanks for your patience.

I still can't open position

What browser are you using?

chromium

I installed firefox and the buy botton isn't even clicable

[Seal]

I tryed your page today with 0,1 BTC....orders are not executing

Trading volume has been incredibly high recently with our reserve maxing out a number of times this week. Apologies for the failed execution, I can see the position logs of each trade and will investigate each one with a fine toothed comb to see what happened.

Thanks for your patience.

I still can't open position

What browser are you using?

chromium

I installed firefox and the buy botton isn't even clicable

Aah if the buy or sell buttons are greyed out then it means that our trading reserve has been maxed out. I'm working on getting this increased. Visual feedback to non-trade events is something that I'm working on improving. Watch this space.

Planned features:
- immediate trade notifications on placed positions
- improved visual feedback during maxed trading reserve events
- notification of failed position placements
- latency status updated in the trading screen
- show leveraged order amount


I'll be checking comparability with chromium later as I have not tested the site with that browser.

In these instances I can only apologise for the problems you've been encountering lately capoeira.

[capoeira]

In CHromium they are not greyed out.

one more: I withdrawed my BTCs but page doesn't even register adress/blockchain