If I have an open buy order that reserves that amount of BTC from my available buying power? I mean, even at my traditional stock brokerage I can have overlapping orders, it just depends at time of execution if I have margin there. This will have a profoundly negative impact on liquidity. Please correct me if i'm wrong.
your glbse 2.0 observation is correct. you have 0 overlaps in orders, no pseudo leverage.
it is not so much pseudo leverage as it is making a proper market. just because i have a buy for 10@1btc for stock a, doesn't mean i won't jump at the opportunity to take
[email protected] of stock b should the market decide to go there (with the same money). money is limited, people have to keep their options open. all this will encourage is no standing bids. credit has to be checked at execution time, that's how it works.
I get your point at it has certain valid logic in it. however currently the exchange is not capable to review buyer's orders and cancel those eventually unfunded if his bitcoins get spent. this way it makes sure no unfunded buy orders remain.
imagine we're the only 2 users. you have buy orders on all my stock and I decide to sell everything.
in your use case I would be able to sell 1st batch of shares and invalidate all your other buy orders (you do not have any more credit on your bitcoin balance)
in the currently implemented use case I could sell all my shares because every buy order displayed is an order backed with blocked bitcoins.
That's great and all except the orders won't be there to begin with. It is actually a disincentive to liquidity providers, why should they tie up their money to 100% commit to something that only might happen. This is a fundamental problem here.
well, the orders will be there just at lower prices and in smaller quantities. I agree that this is an issue worth further discussion but I don't see it as a show stopper.
edit: I'm interested in goat's opinion, as he's managing the 'bank' asset and has an open buy order for a 1000 or so shares. that would mean he either keeps the bitcoins in the exchange lying around and not working for him or would have to visit the exchange frequently to keep track of sales and respective buy orders
Guessing it's already been suggested, but the option of setting a "payout lock" (having a set withdrawal address requiring email confirmation or 48h to change) would be nice in the future, too.
afaik not yet. withdrawals in 1.0 were subject of charge and limit and were not talked about. you're pioneering this idea with your request