Forced covering in the BTS/bitCNY market must be painful

in #bitshares6 years ago (edited)

I see these user initiated settlements of thousands of bitCNY happening daily . Shorters that have more than 200% collateral are being forced to cover. This can't be good for liquidity can it? For instance: I'm going to borrow less CNY if I have to do so at higher collateral to be safe from these aggressive settlements.

Here is the most recent: https://cryptofresh.com/b/6325807

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So, this differs from the bitUSD et al.?

Only in that a lot of bitCNY is being forced settled at the moment. You can check in the market history. these transactions are colored in gold. And IMO, you wouldn't want to short when this is happening, because you may get margin called even with sufficient collateral, especially on a market swing, if your collateral value declines to put you at the bottom of the queue

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