Topic: https://bitdaytrade.com Bitcoin Gold & Commodities margin trading - page 10. (Read 19573 times)

I am very interested in the possibility of trading traditional markets via BTC, but here’s my concern:

What if Bitcoin rallies a lot and increases in value by say, ten times in a few weeks? Since you sell the Bitcoins, you are essentially short, if I understand correctly, and would have to purchase them much more expensively if I wanted to withdraw my Bitcoins.

Do you have a way to hedge that? If yes, how?

Bravo on a game changer 50x1 leverage trading gold future  

We really appreciate all your feedbacks. We have had experiences trading currencies with various Forex providers and ECN platforms too, mostly with Gold and Oil futures.  What you propose does make a lot of sense, and it will be in the works soon. As per the bitcoins, they get transferred to mtgox as soon as they are received and converted to USD. When a withdrawal is requested, bitcoins are bought and sent via the Mtgox API. Please note that withdrawals are not automatic, nor istant.

Sounds good.  I understand you are just brand new basically, but I think you have a really good start.  I have been waiting for something like this because of the margin requirements currently at the CME.  Just someway to trade while I am at school.

Just think like trading FX on an ECN compared to FX with like, well anyone that doesn't run an ECN.  Have you traded FX on Interactive Brokers, for example, or any other ECN?  Just saying.

I think you would gain a lot of credibility to your project/platform if when you placed a limit order, you could simultaneously see this on the DOM.  That way we know what is going on with the orders and you aren't playing games in the background.  Time and Sales window would just basically confirm these things.

If that doesn't make sense, please say so.  


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How are the btc kept once we send them to your website?  Are they staying in BTC or being converted to USD?  If BTC price goes down big time that is going to cause huge problems with margin calls if they are not being immediately converted to USD.  Especially because we are using one derivative to trade another derivative

We structured our minimal lot of 0.01 contracts for Gold as per our Forex API requirements. We can fractionate one full contract that way and offer a reasonably small minimum trading volume. Slippage is not an informations we intend to make public. Can you elaborate more on the Time/sale window ? Thanks for your great feedbacks so far.

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A suggestion, most people will probably be only trading fractional contracts.  But what if someone comes to your application to trade multiple contracts?  Do you believe that someone will just accept the slippage will be "hidden?"  Would you trade in a system like that?  

Well, maybe if it was just playing around with a coin or two, yes (FX comes to mind, but this is mildly different, IMO).   I think you should guarantee volume on the bid/ask like bitcoinica (even if it is just .25 contract or something), that is one of the best things ZT came up with, IMO.

Also, if you could please answer my question about the BTC - USD conversion and how our money is stored once it reaches your website in BTC or USD?  In relation to our margin balances that is a big deal.

Time and sales window is just a small pop-up window that displays all trades in real time with volume.  I ask this because there will be times that someone has a limit order out, hits the number, but doesn't get filled because he is too far back in the book or something before the bid jumps.  Just take a look at google for "time and sales window".. I am sure you know what it is after looking at it.

I really think though, if you are looking for larger players in your book, that you should implement a real time DOM application with time and sales.  Especially if these same people have the bankroll to trade some other futures company in the USA etc.  I guess your application sends some order straight through to the exchange of your choosing, so that is where there is some gray area, at least for me...?

By the way, how are the orders routed from your platform to xyz exchange?  What other software / brokers / platform are you using other than this proprietary one you have created - if you don't mind relaying that information.  Are you using CME?

Thanks

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Right, probably most people will be trading on fractional contracts.  We will definitely evolve the interface to something like you describe in the near future. This is just a start, i'll make sure to google "Time and Sales window" and get an exact grasp of how to use it best in our project.
Our applications routes orders to a forex aggregator which offers also derivatives and futures contracts and has a good API available.
Also to respond to some other ealier question, our technology has been developed in-house and it took a couple of months to get here.

Thanks for all your feedbacks, much appreciated.

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We structured our minimal lot of 0.01 contracts for Gold as per our Forex API requirements. We can fractionate one full contract that way and offer a reasonably small minimum trading volume. Slippage is not an informations we intend to make public. Can you elaborate more on the Time/sale window ? Thanks for your great feedbacks so far.

[/quote]

A suggestion, most people will probably be only trading fractional contracts.  But what if someone comes to your application to trade multiple contracts?  Do you believe that someone will just accept the slippage will be "hidden?"  Would you trade in a system like that? 

Well, maybe if it was just playing around with a coin or two, yes (FX comes to mind, but this is mildly different, IMO).   I think you should guarantee volume on the bid/ask like bitcoinica (even if it is just .25 contract or something), that is one of the best things ZT came up with, IMO.

Also, if you could please answer my question about the BTC - USD conversion and how our money is stored once it reaches your website in BTC or USD?  In relation to our margin balances that is a big deal.

Time and sales window is just a small pop-up window that displays all trades in real time with volume.  I ask this because there will be times that someone has a limit order out, hits the number, but doesn't get filled because he is too far back in the book or something before the bid jumps.  Just take a look at google for "time and sales window".. I am sure you know what it is after looking at it.

I really think though, if you are looking for larger players in your book, that you should implement a real time DOM application with time and sales.  Especially if these same people have the bankroll to trade some other futures company in the USA etc.  I guess your application sends some order straight through to the exchange of your choosing, so that is where there is some gray area, at least for me...?

By the way, how are the orders routed from your platform to xyz exchange?  What other software / brokers / platform are you using other than this proprietary one you have created - if you don't mind relaying that information.  Are you using CME?

Thanks

We structured our minimal lot of 0.01 contracts for Gold as per our Forex API requirements. We can fractionate one full contract that way and offer a reasonably small minimum trading volume. Slippage is not an informations we intend to make public. Can you elaborate more on the Time/sale window ? Thanks for your great feedbacks so far.

Can you go into a little more detail about your trading platform? Did you write the code in-house, open source, etc.?

Well, the B/A spread seems ok for this application to be honest.  I think the usual spread on the futures contracts is probably 1-5 ticks depending on the time.  Obviously this application doesn't have a 'x'ms latency, so..

But what I was wondering is if you purchase like .5 of a contract, and lets say that the ask is 1000 for example.  How many contracts (or .01 contracts) are available at the ask of 1000?  What I am getting at is how do we know what the slippage will be w/o having that information?

Also, I think it would be nice if you added time/sales window.  That way there can be no bullshit about your limit order not entirely being filled etc.  I think these 2 things are necessities for anyone looking to come in with a large amount of coin.

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I have one other question though.  Like bitcoinica, when the price of bitcoin goes up or down, so does your account value.  When we transfer in bitcoins to you, do you automatically convert them to USD to avoid the problems with carrying gold contracts with BTC that usually ranges more than the derivative (gold) we are trying to trade?  Hopefully that makes sense.

Thanks

Traders  on bitdaytrade are trading so against the worldwide Gold market at the moment.

So traders using your exchange are trading against the bitdaytrade.com?

The bid/ask spread is a little higher than what we get from our forex provider, to make us some money and protect us against slippage and violent  price fluctuations. We will look into chart DOM in the future, what other features would you add to the site ?
thanks for your feedback!

Sounds cool.

But like I see the spread is currently $1.  How many contracts are available at the best bid/ask?  Seems like you have a good start etc. but there is still some work to do.  Will def. keep the website bookmarked though and follow this thread.

I would recommend a chart DOM if you could implement that.  

I will make that available soon. Thanks for your feedback.

Some type of Market Overview at your exchange. Basic info like volume, High, Lows, last, inside quote, etc.

Added to the FAQ as well.

Correct, operations are virtually conducted from Hong Kong.  Right, Bitcoin deposits and withdrawals. only.

What do you mean by "market viewable without registering" ?

Right, we do use bcrypt for password storage. It's the safest option on the market at the moment.