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RE: Heronomex Pre-Launch the "HERO Billion Dollar Challenge" - Live Webinar (3rd July)
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The Hero is borrowed into existence by someone who uses BTS as collateral - like a home equity loan uses your house as collateral. Except you can sell, trade, spend or hold the Hero like a coin.
Hummmm... I tried that short the HERO/buy the BTS thing. I went to bed. Woke to a 4,040 BTS loss due to involuntary margin calls. Had 3.0 margin coverage when I went to bed. No messages, no warning. Bought HERO back at big loss without my intervention. Can't blame anyone but myself for not being better covered.
Be careful out there in MarginLand at BTS - or any exchange for that matter. I won't do margin again, I assure you. Happy HEROing, kids... just be careful.
I only start shorting with at least 8x margin, crypto is volatile and so is BTS.
I did a post on this. I was a nervous wreck but wanted to try it. It worked out for me, but I was watching it like a hawk and also had the collateral ratio set really high so I could get out if need be. It did teach me quite a bit about the way Hero will work and how it being backed by bitshares will affect both markets. It was so interesting, but I don't think my nerves could take much margin trading! :)
Thanks for your good advice. Should My margin moment ever fade from my active memory and greed tempts me, I'll most definitely apply your margin coverage. Regarding BTS - After having crypto tied up in a couple of exchanges, the concept of decentralised exchange is appealing.
I find BTS, like margin trading, is a place for the experienced player - tuition can be expensive. Providing one survives there, one can become more competent. Ahhhh, the thrill of running with the Big Dogs!
100% margin trading is a risky game and should only be done by those that completely understand the risks and have the bank roll to defend their position or cut their loses early (doesn't help when your sleeping)
I personally do not trade on margin; quite the opposite i am actually looking forward to a highly liquid trust free hedge against volatility. i have tried my hand in nubits before and also tether and smartcoins seems to be the best mix of trust free and collateral backed! they are even great when the market starts to rally because unlike some others asset (when the marekt starts a bull run no one is buying stable coins) if their is no liquidity to sell at market you can just 'settle' the position and take the underlying collateral.
Current problem that i think HERO has a chance to displace is to have enough liquidity at the current market price to allow traders to easily buy into a hedge without price creep.
Thanks for your thoughts. I like the altruistic concept of HERO and the idea we can 'Borrow' the HERO into existence. Exhuberance edged out the Essential Twins, Caution and her sister Thorough Understanding, with predictable results. I'm taking the experience as paid tuition and I'm thankful the loss wasn't larger. The hell of it is facing the fact I had plenty of liquidity, but too little understanding - a real life Homer moment, D'oh...
Most holders of HERO who want to trade back to BTS utilize settlement orders because liquidity is still rather low, and the spread is high. If a settlement order can't be fulfilled by the order book, it will eat through the least collateralized debt positions for the asset in question. I would be very careful borrowing Hero with low collateral coverage until liquidity improves.
Its an importance sentence; as such i state it twice ;) lol. No not really; well... it is important but that was not my intention. Thanks for the keen eye!
Well didn't need such a keen eye for that hehe ;)
It's annoying to miss stuff like that. I actually wrote a post about a Steemit post beautifier , you might want to check it out.