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wangxinxi (OP)
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June 02, 2015, 05:28:34 AM |
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Mr. Wang,
I know you guys are working on a lot. Just want to illustrate how your current margin regime is limiting your trading volume.
Right now I have a strangle on using binary options, and I'm prepared to hold the entire position through expiration.
With this position I should have 1/2 margin available, which I would like to be trading the 30-min contracts ... but you've tied my hands by requiring margin on both the call and put-sides of my position.
I think you understand ... thanks.
Yeah, someone mentioned this complex margin calculation in this thread. We will be definitely working on it soon. Thank you for the suggestions. |
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"You Asked For Change, We Gave You Coins" -- casascius
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Indamuck
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June 02, 2015, 08:11:47 PM |
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Mr. Wang,
You might consider presenting your platform on Elitetrader.com (ET).
Lots of experienced options traders discuss strategies there, and some have familiarity with BTC as well. For many traders the actual underlying asset is almost irrelevant, as you probably know. ET readers do trade in reasonable volume. Not sure how much ET will let you promote before hitting you up for a paid banner or such.
In your shoes I would be letting everybody on ET know what you have. A handful of those guys are very, very seasoned traders ... with some prop and institution background.
ET has a sub-forum dedicated to Options and one dedicated to Cryptocurrency as well. You might begin by starting a thread in each, and see where it goes.
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Indamuck
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June 03, 2015, 04:32:36 AM |
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Within the last 60 minutes I've 'opened' several trades (binary options) that failed to execute. I even crossed the market, my order is still 'opened' but never executed ...
Having trouble saving screenshots ... can't be bothered with it, and giving up for the moment.
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wangxinxi (OP)
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June 03, 2015, 05:45:12 AM |
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Within the last 60 minutes I've 'opened' several trades (binary options) that failed to execute. I even crossed the market, my order is still 'opened' but never executed ...
Having trouble saving screenshots ... can't be bothered with it, and giving up for the moment.
Just PMed you. Please check. |
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chriswen
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June 03, 2015, 11:18:02 PM |
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you mean you didn't get filled? I have many ghost orders that stay in my open orders occasionally even after I cancelled them. I click cancel again to make sure.
Also I'd be interested in an open interest statistic. Wondering if its possible to incorporate that.
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wangxinxi (OP)
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June 03, 2015, 11:43:16 PM |
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you mean you didn't get filled? I have many ghost orders that stay in my open orders occasionally even after I cancelled them. I click cancel again to make sure.
Also I'd be interested in an open interest statistic. Wondering if its possible to incorporate that.
His problem has been fixed. Chriswen, are you using the API to cancel the orders? If you cancel through the interface only, there should be no problem. But there is some issue in the synchronization between API and the interface. Open interest will be added within this week. We are busy with that. |
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chriswen
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June 05, 2015, 10:50:01 PM |
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Hi,
I witnessed a bit of a bug where the index was at $150. It's slightly worrying. Hopefully when you get the problem resolved you can offer an explanation.
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Indamuck
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June 05, 2015, 10:56:43 PM |
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Hi,
I witnessed a bit of a bug where the index was at $150. It's slightly worrying. Hopefully when you get the problem resolved you can offer an explanation.
I just sent them an e-mail with screenshot. You might sell some puts near the $140 level ... they are bidding a good price! I'm not sure those transactions would be honored though ... |
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chriswen
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June 05, 2015, 10:59:00 PM |
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Hi,
I witnessed a bit of a bug where the index was at $150. It's slightly worrying. Hopefully when you get the problem resolved you can offer an explanation.
I just sent them an e-mail with screenshot. You might sell some puts near the $140 level ... they are bidding a good price! I'm not sure those transactions would be honored though ... I got some calls at $160. I think its because of btc-e being down. They should get it fixed and this problem shouldn't happen again. |
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chriswen
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June 05, 2015, 11:11:03 PM |
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Indexed fixed. 0613 marketmaker still has bids and asks down there.
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wangxinxi (OP)
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June 05, 2015, 11:17:39 PM |
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As some of you have noticed, BTC-e was down and its price become zero in our server. That's why you saw our price index dropped quite a lot. All positions with the price around 150 will be canceled. Sorry for the inconvenience.
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chriswen
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June 05, 2015, 11:27:14 PM |
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As some of you have noticed, BTC-e was down and its price become zero in our server. That's why you saw our price index dropped quite a lot. All positions with the price around 150 will be canceled. Sorry for the inconvenience.
Okay that's completely understandable. WIll this problem be fixed if exchanges go down in the future? |
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wangxinxi (OP)
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June 05, 2015, 11:30:49 PM |
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As some of you have noticed, BTC-e was down and its price become zero in our server. That's why you saw our price index dropped quite a lot. All positions with the price around 150 will be canceled. Sorry for the inconvenience.
Okay that's completely understandable. WIll this problem be fixed if exchanges go down in the future? Thank you for your understanding. Yes definitely. We've fixed the issue. We are now using Bitfinex and Bitstamp. If BTC-e.com comes back again, we will still use it. If all Bitfinex, Bitstamp, and BTC-e.com are down together, which is really rare, we will pause trading immediately. |
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Indamuck
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June 07, 2015, 02:54:06 AM |
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I finally spent some time familiarizing with the vanilla options ... I'm guessing Coinut is getting minimal volume with these?
The structure and pricing is not intuitive at all. For example, if we look at the 225 calls priced at .000511/.000619 ... it is not immediately clear at what level one would be profitable on either side. (Yes we can do the calculations, but nobody wants to be punching their calculator in a fast market.) Perhaps the contract size would work better at 0.1 btc, with the option prices stated in US$? The prices would be convertible to btc at the moment of order submission, at the current index value.
Currently I use the binary options to position for a flat-to-rising market. If I want to hedge or take a speculative long, for the time being I would probably look elsewhere ...
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chriswen
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June 07, 2015, 03:06:57 AM |
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I finally spent some time familiarizing with the vanilla options ... I'm guessing Coinut is getting minimal volume with these?
The structure and pricing is not intuitive at all. For example, if we look at the 225 calls priced at .000511/.000619 ... it is not immediately clear at what level one would be profitable on either side. (Yes we can do the calculations, but nobody wants to be punching their calculator in a fast market.) Perhaps the contract size would work better at 0.1 btc, with the option prices stated in US$? The prices would be convertible to btc at the moment of order submission, at the current index value.
Currently I use the binary options to position for a flat-to-rising market. If I want to hedge or take a speculative long, for the time being I would probably look elsewhere ...
Before you make an order you'll get a confirmation page and it'll ask for the breakeven price. |
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Indamuck
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June 07, 2015, 04:55:57 AM |
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I finally spent some time familiarizing with the vanilla options ... I'm guessing Coinut is getting minimal volume with these?
The structure and pricing is not intuitive at all. For example, if we look at the 225 calls priced at .000511/.000619 ... it is not immediately clear at what level one would be profitable on either side. (Yes we can do the calculations, but nobody wants to be punching their calculator in a fast market.) Perhaps the contract size would work better at 0.1 btc, with the option prices stated in US$? The prices would be convertible to btc at the moment of order submission, at the current index value.
Currently I use the binary options to position for a flat-to-rising market. If I want to hedge or take a speculative long, for the time being I would probably look elsewhere ...
Before you make an order you'll get a confirmation page and it'll ask for the breakeven price. If I cannot see, at a glance, where the market is at, across different strikes and timeframes, I'm not going to bother 'making an order.' There are other instruments/markets that do this better. Not to mention ... not sure I'm comfortable trusting a new site and their untested margin regime. Note margin requirements - arbitrarily set - are subject to changes 'based on market conditions.' I haven't seen any explanation of how margin calls will be handled. Likely they are automated to some degree ... uggh. |
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wangxinxi (OP)
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June 11, 2015, 07:06:00 PM |
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I finally spent some time familiarizing with the vanilla options ... I'm guessing Coinut is getting minimal volume with these?
The structure and pricing is not intuitive at all. For example, if we look at the 225 calls priced at .000511/.000619 ... it is not immediately clear at what level one would be profitable on either side. (Yes we can do the calculations, but nobody wants to be punching their calculator in a fast market.) Perhaps the contract size would work better at 0.1 btc, with the option prices stated in US$? The prices would be convertible to btc at the moment of order submission, at the current index value.
Currently I use the binary options to position for a flat-to-rising market. If I want to hedge or take a speculative long, for the time being I would probably look elsewhere ...
Before you make an order you'll get a confirmation page and it'll ask for the breakeven price. If I cannot see, at a glance, where the market is at, across different strikes and timeframes, I'm not going to bother 'making an order.' There are other instruments/markets that do this better. Not to mention ... not sure I'm comfortable trusting a new site and their untested margin regime. Note margin requirements - arbitrarily set - are subject to changes 'based on market conditions.' I haven't seen any explanation of how margin calls will be handled. Likely they are automated to some degree ... uggh. The margin was pretty conservative. It is not arbitrarily set. Currently, the market makers need to use about 40% of the notional value as margin to write a vanilla option contact. We monitor the margin level every 5 minutes. If margin calls happen, we first cancel the user's orders, and if this is still not enough, the user's positions will be closed using market orders. This is stated in the FAQ under the question "What if the seller defaults". |
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Indamuck
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June 11, 2015, 07:22:04 PM |
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The margin was pretty conservative. It is not arbitrarily set. Currently, the market makers need to use about 40% of the notional value as margin to write a vanilla option contact. We monitor the margin level every 5 minutes. If margin calls happen, we first cancel the user's orders, and if this is still not enough, the user's positions will be closed using market orders. This is stated in the FAQ under the question "What if the seller defaults".
How automated is that process? If Btc-e goes down again and the index goes kilter ... are these margin calls triggered? By 'arbitrarily set' I'm referencing the fact that derivatives exchanges routinely change the margin requirements on their contracts. Of course they will cite reasons, but the changes will always seem arbitrary to others. My point is, you DO have the option of changing the margin requirements at any time, though at 40% it sounds like that shouldn't be necessary. Next few days I will set up a second account to play with the vanilla options a bit. Have a look ... |
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wangxinxi (OP)
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June 11, 2015, 07:30:40 PM |
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The margin was pretty conservative. It is not arbitrarily set. Currently, the market makers need to use about 40% of the notional value as margin to write a vanilla option contact. We monitor the margin level every 5 minutes. If margin calls happen, we first cancel the user's orders, and if this is still not enough, the user's positions will be closed using market orders. This is stated in the FAQ under the question "What if the seller defaults".
How automated is that process? If Btc-e goes down again and the index goes kilter ... are these margin calls triggered? By 'arbitrarily set' I'm referencing the fact that derivatives exchanges routinely change the margin requirements on their contracts. Of course they will cite reasons, but the changes will always seem arbitrary to others. My point is, you DO have the option of changing the margin requirements at any time, though at 40% it sounds like that shouldn't be necessary. Next few days I will set up a second account to play with the vanilla options a bit. Have a look ... I understand your concerns. We've fixed the bug about the price jump after a price source goes down. So you won't be able to see that again. Currently, it is unlikely for us to change the margin requirement because the volatility right now is pretty low. But if it rises much higher later, we may need to raise the margin requirement. So we cannot say that we will fix the margin level and never change. Of course, if change is needed, we will notify all the vanilla option writers before the change to make sure they will have enough time to add more money to protect their positions. Yes, you are welcome to try our vanilla option at anytime. BTW, I traveled last weekend, so you will see the volume and open interest within this week. |
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