what's your broker's approach here?
remind you that glbse is not offering lines of credit nor margins and no leverage as bitcoinica is doing.
please educate me and refine your wish to behavior of buy orders in case they would start executing.
we're messing here with market depth and rules should be well described, understood and implemented.
forgot to reply to this, noticed you mention something in another thread about it. I think the way my current broker handles it is real simple though I am not sure exactly how they handle it as I haven't actually looked at the actual rules. This is how it acts however: Your order is checked at order time to make sure you have the balance / margin / credit available. If this first check passes, the order is posted. Kind of like a "soft" check / pre-approval. At execution time, the order is checked for margin again and then executed. The "hard" check. Now the way my broker works, is they give you a certain # called "buying power" which takes into account other holdings and things too. I think for GLBSE purposes, this could just be based on cash on hand. IE: if I have 100 BTC on hand, I should be able to place 100BTC orders, as many as I want, whatever price I want, and these should all pass the soft check. At execution time, if the order fails a hard check, it is removed from the order book / cancelled. Something like that anyway.
I agree this would be more desirable than 2.0's current BTC reserved rules, especially since the volume of GLBSE is so low. We have no idea when my orders are going to be placed, so now I have place orders of those I think has a higher chance of being processed and not place orders that would take longer to execute. As can be seen on GLBSE 2.0 now, there are many more sell orders than buy orders which is a direct result of these new rules.
You should not be able to place an order unless you have cash on hand to execute THAT EXACT order.
Reason for this:
Someone with, say, 500 BTC could place 50000000 orders for 500 BTC each and never fail a soft check, thus completeley destroying any credibility into the market.
If now one order gets partly filled for 100BTC , which of the other orders do you delete/modify?
If all orders would stand "as is", you'd have the same situation as in the old GLBSE, where "fake" orders (or simply those that didnt have funds allotted to them) would fill up the BID side without ever being traded!
There is ONE order type that takes care of that which is called "OCO" (one cancels other) that allows one to place two orders of 500BTC each and as soon as one is filled, the other order gets cancelled automatically.
