It is clear that many of you are actually wanting to (or are) day trading BTCD
could make or lose you a lot of money and depending on market liquidity and the amounts you are trading, it might be an issue each time you change directions of your trade
What if there was a way to "sell" BTCD without actually having to sell it?
What if you could lock in the current price and then without ever selling/buying BTCD you could change from long to neutral to short to long, etc.?
Well I talked to my friend shortNXT who issued the asset he is named after. this is a virtual asset that goes in the opposite direction of NXT. So if NXT goes up 5%, shortNXT goes down 5%. If NXT goes down 5%, shortNXT goes up 5%.
See, just like up is down, down is up
I was able to convince him to issue shortBTCD!
I think by tomorrow, you will be able to market time BTCD without touching your actual BTCD, this means you can even be staking with your BTCD while you hedge against down moves, lock in ATH, remove the hedge when you feel it is at a bottom, etc.
Very cool stuff, if you are into this type of thing
James
Following up on James' earlier post, ShortBTCD is now live on the NXT Asset Exchange (asset ID: 3267494002243225342). As noted, it is designed to move in the opposite direction as BTCD/BTC. Its target price is the previous day's target price minus the percentage change in BTCD/BTC over the same time period.
So if BTCD/BTC goes down 5% from one day to the next, ShortBTC should go up 5%. The target price is supported by the issuer (and later, likely by 3rd party holders) with bids and asks on the Asset Exchange.
For example, it launched this morning at 10 am ET, when BTCD/BTC (based on the weighted average at coinmarketcap.com) was 0.00978. Since then, BTCD/BTC has risen 17.6% to 0.0115. So the target price of ShortBTC has fallen 17.6% (
edit: from the initial price of 100) to 82.4. Accordingly, the current bid/ask is 82/83.
There may not be 24-hour liquidity in the asset, but at least once a day, usually upon the daily reference calculations at 10 am (and typically for a good portion of the day), you can get into or out of positions as desired. Today, for instance, we've maintained constantly liquidity since launch (about 5 hours), with pretty tight spreads.
The discussion thread on the Nxt Forum is
here.
Feel free to message me with any questions.
Thanks!