Closed my bitUSD short position and bought BLOCKPAY
Good morning Steemit,
Considering the volatility of the markets, I have decided to start trading more. Today I covered 225 bitUSD I shorted 10 days ago using the exchange features built into the Bitshares wallet.
To short bitUSD in the first place, all I had to do was "borrow USD" in the wallet, and then turn around and sell that borrowed USD back on the market.
To borrow USD look next to the "SELL BITUSD" label at the BTS/BitUSD trading pair, and you'll see it.
After you click that, you'll see the following modal pop-up:
You can set the amount of bitUSD you would like the borrow into existence, as well as how much collateral you want to put up to back it. The more backing collateral you have, the less likely it will be that you get called. Being called is bad because you lose all of the collateral you put up! The "call price" listed shows the price at which each bitUSD would have to cost in terms of BTS for the position to be automatically closed. Bitshares has built in margin calls to prevent bitassets like bitUSD from becoming under-collateralized. The nice thing though, is that you can update the collateral backing your position at any time. So if you're in danger of being called, you can put more collateral up and ride it out. Or if you don't feel like the price will go anywhere near the call price, you can remove collateral. To update your position or close it, head over to the "Account" tab and scroll down to "Margin positions".
I made the initial trade in the first place because I felt that BTS was going to start a bull run, so I figured I would gain some extra leverage on that. Now my thoughts are that I will take a small profit, and if BTS dips again open another short. To take my profit, I just bought the required bitUSD back off the market, and clicked "Close position" above. That brings up a modal pop-up like the following:
Click confirm, and your position is closed!
Considering the bitUSD I borrowed into existence was sold for 109.5 BTS, and today the bitUSD I bought to cover my position costed 87.7 BTS. It was a nice little profit... about 4,905 BTS. I decided to buy some BLOCKPAY tokens, so this covered a decent portion of that trade.
Blockpay is a good choice ;-)
I think so. Hopefully going to set up a coffee shop in Detroit with @blockpay next week. They used to accept Bitcoin but using Breadwallet was making it confusing for them to do on the fly conversions from USD, and the baristas didn't understand how to use it.
Much success with your set up. I am guessing your are an blockpay ambassador. Did you have luck until now with a setup or is this your first try?
I'm not an ambassador for them but I do like their app after playing around with it for a bit.
I don't think setting it up will be hard after playing around with the app on my phone. The most important part seems to be backing up the BTS account secrets. I think it would also be good to be able to lock the app so that it can only do PoS functions and not configure the wallet settings. But it seems like a good start.
I hope to get to this point. When I do, I will refer back to this. lol
Excellent post! I like your work My friend
Of course, I should have held this short a little longer! This trade could have made a much better profit if I had waited it out for a few more days and covered today.