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Author Topic: At what $ point am I liquidated?  (Read 929 times)
SgtSpike
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January 09, 2012, 10:26:30 PM
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I don't really know much about trading on margin, just thought I'd try it out with 5 BTC.  It's not a huge deal if I lose those 5 BTC, but am curious what $/BTC point would have to be reached in order for me to be forced to liquidate?

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ArsenShnurkov
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January 09, 2012, 10:36:41 PM
 #2

I think 5.26


Koekiemonster
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January 09, 2012, 10:38:55 PM
 #3

So you went long with 12 BTC on your 5 BTC deposit. This means your leverage on this position is 1:2.4.
This means your balance would be 0 and so your position will get a forced liquidation at a 29.41% drop((1/3.4)*100), but bitcoinica works with 4% maintenance so your position will be liquidated at a 25.41% decrease which is equal to a worth of 5.05 $/BTC.

edit: I see ArsenShnurkov has a different outcome, I'm curious to who is wrong/right. I'm fairly new to this as well.

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January 09, 2012, 10:40:27 PM
 #4

$5.26 or $5.05?  Eh, close enough.  Around $5.00 we'll say then.

Well, let's just hope it doesn't come to that!  I'm holding though, I do believe we have more rally to come.  Just hoping that there isn't a large dip before we come to that!
randomguy7
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January 09, 2012, 11:01:40 PM
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I think it's $5.26, too.

5X - (12 * 7.1577 - 12X) > 3.44
--> X > 5.26
Lumpy
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January 09, 2012, 11:08:30 PM
 #6

Definitely $5.26. I made a spreadsheet to do the calculations for me and it agrees.
cypherdoc
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January 09, 2012, 11:10:30 PM
 #7

does the base price dynamically adjust?
ArsenShnurkov
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January 09, 2012, 11:12:58 PM
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does the base price dynamically adjust?

I think, no. Base price is the weighted average price at which bitcoins was bought.
You can try to add more money and buy more bitcoins,
then the base price will decrease (if you will buy at lower price) or increase (if you buy at higher price).

Without adding new money you will increase the leverage, which will rise your Zhoutong price (when you are in short position)
ArsenShnurkov
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January 09, 2012, 11:18:51 PM
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Definitely $5.26. I made a spreadsheet to do the calculations for me and it agrees.

Which calculations (beside calculating the zhoutong price) your spreadsheet does?
bitcoinBull
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January 10, 2012, 12:08:06 AM
 #10

The simplified way to calculate is:

current bid -  [ (net value - maintenance) / (position amount + BTC balance) ]

its $5.26

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