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I'm glad my loan sharkery is amusing to all
I'm glad my loan sharkery is amusing to all
I meant it, in the nicest way possible
Topic: Totally confused with swaps. - page 2. (Read 4112 times)
I meant it, in the nicest way possible
Ok, I made an offer at bitfinex: 100 BTC 0.2% 30 days , i am curious
What does Non-Compounded and Compounded mean at http://bfxdata.com/calculators/swaps.php ?
What does Non-Compounded and Compounded mean at http://bfxdata.com/calculators/swaps.php ?
If your offer is taken and held for full 24hrs, you should get 0.2BTC. Now you can either withdraw that BTC (non-compound) or let it ride and loan it out again, so next day you're lending 100.2BTC and now should get 0.2004 on the second day, that's where compounding comes in
It seems not a good return, 100 coins to make 0.2 coins per day... if you use those coins to buy miners, only 40 coins could make you 0.2 coins per day
But those 40 BTC are then gone, and may never see ROI let alone any profit. The 100BTC (if he's a holder anyway) are better working for him than sitting in some dumb safe wallet.
It seems not a good return, 100 coins to make 0.2 coins per day... if you use those coins to buy miners, only 40 coins could make you 0.2 coins per day
Ok, I made an offer at bitfinex: 100 BTC 0.2% 30 days , i am curious
I don't know if someone is gonna take that 0.2% (there's a 1'671 BTC at 0.17% right now). But anything below that like 0.16% will do.
Ok, I made an offer at bitfinex: 100 BTC 0.2% 30 days , i am curious
What does Non-Compounded and Compounded mean at http://bfxdata.com/calculators/swaps.php ?
What does Non-Compounded and Compounded mean at http://bfxdata.com/calculators/swaps.php ?
Good info, tagged for later
thanks for explanation.
No it's not too good to be true, it is true
You calculated the interest rate for the last 30 days, but that interest rate is a lot higher now because everybody wants to short.
Recently there were almost no BTC to borrow on Bitfinex:
http://www.reddit.com/r/Bitcoin/comments/2kctwh/there_are_no_btc_available_left_to_short_on/
I posted what's the flash return rate RIGHT NOW for BTC.
And right now the flash return rate is 0.18%
But how long will it keep so high? if only days or weeks then it means nothing for the long term (long term ROI low)
Since we're talking about swaps, maybe someone can clarify how taking liquidity on bitfinex works? Let's say you offer funds for 30 days, and the funds you offered are automatically accepted to cover a position some trader takes. It's my understanding you do not have a guarantee of having locked in the interest rate you specified for 30 days - if the position is closed, so is the swap contract. Is this correct? But if someone explicitly takes your offer up, not directly related to a position they're taking, they are on the hook for 30 days worth of interest?
Swap offers can be closed at any time, you pay interest by the hour.
You mean swaps taken? AFAIK you can't, as a liquidity provider, close an offer once it's been taken before the limit is up. Which seems to pretty much mean doesn't make sense to offer anything else than flash return rates on autorenew unless you like spending your time watching your offers...
If you loan BTC right now you earn 0.15% a day.
If you loan USD right now you earn 0.08% a day.
This is the flash return rate ("the default"), but you can put a different percentage and people can accept your offer.
it was to good to be true (0.15%)
The current BTC interest rate is quite atypical, BTW. The average daily rate for the last 90 days is 0.0184% for BTC and 0.0768% for USD
http://bfxdata.com/calculators/frrswaps.php
Last 30 days for 100BTC
Total Return for Period $215.62
Total Return from 2014-8-26 to 2014-9-27 : $139.43
So for me I think it is to risky to keep 100 BTC on bitfinix for such little ROI
(I made 29 btc with 4 trades (sell, buy back, sell, buy back) on bitstamp in this month )
You calculated the interest rate for the last 30 days, but that interest rate is a lot higher now because everybody wants to short.
Recently there were almost no BTC to borrow on Bitfinex:
http://www.reddit.com/r/Bitcoin/comments/2kctwh/there_are_no_btc_available_left_to_short_on/
I posted what's the flash return rate RIGHT NOW for BTC.
And right now the flash return rate is 0.18%
If you loan BTC right now you earn 0.15% a day.
If you loan USD right now you earn 0.08% a day.
This is the flash return rate ("the default"), but you can put a different percentage and people can accept your offer.
it was to good to be true (0.15%)
The current BTC interest rate is quite atypical, BTW. The average daily rate for the last 90 days is 0.0184% for BTC and 0.0768% for USD
http://bfxdata.com/calculators/frrswaps.php
Last 30 days for 100BTC
Total Return for Period $215.62
Total Return from 2014-8-26 to 2014-9-27 : $139.43
So for me I think it is to risky to keep 100 BTC on bitfinix for such little ROI
(I made 29 btc with 4 trades (sell, buy back, sell, buy back) on bitstamp in this month )
Since we're talking about swaps, maybe someone can clarify how taking liquidity on bitfinex works? Let's say you offer funds for 30 days, and the funds you offered are automatically accepted to cover a position some trader takes. It's my understanding you do not have a guarantee of having locked in the interest rate you specified for 30 days - if the position is closed, so is the swap contract. Is this correct? But if someone explicitly takes your offer up, not directly related to a position they're taking, they are on the hook for 30 days worth of interest?
Swap offers can be closed at any time, you pay interest by the hour.
You mean swaps taken? AFAIK you can't, as a liquidity provider, close an offer once it's been taken before the limit is up. Which seems to pretty much mean doesn't make sense to offer anything else than flash return rates on autorenew unless you like spending your time watching your offers...
Since we're talking about swaps, maybe someone can clarify how taking liquidity on bitfinex works? Let's say you offer funds for 30 days, and the funds you offered are automatically accepted to cover a position some trader takes. It's my understanding you do not have a guarantee of having locked in the interest rate you specified for 30 days - if the position is closed, so is the swap contract. Is this correct? But if someone explicitly takes your offer up, not directly related to a position they're taking, they are on the hook for 30 days worth of interest?
Swap offers can be closed at any time, you pay interest by the hour.
Since we're talking about swaps, maybe someone can clarify how taking liquidity on bitfinex works? Let's say you offer funds for 30 days, and the funds you offered are automatically accepted to cover a position some trader takes. It's my understanding you do not have a guarantee of having locked in the interest rate you specified for 30 days - if the position is closed, so is the swap contract. Is this correct? But if someone explicitly takes your offer up, not directly related to a position they're taking, they are on the hook for 30 days worth of interest?
I have recently risen to Hero, so I'll dare to ask a leverage trading question: 
If someone takes a loan in $ to go leveraged long, does he have to buy BTC immediately, or can he wait 12h - 24h,
for instance if he wants to catch the bottom of a correction? Or if he takes a loan in BTC, does he have to immediately sell all,
instead of selling a chunk, wait for bids to rebuild, then sell another chunk, to reduce slippage?
Edit: Never mind my silly question, someone gave the answer I was looking for in the wall observer thread.
If someone takes a loan in $ to go leveraged long, does he have to buy BTC immediately, or can he wait 12h - 24h,
for instance if he wants to catch the bottom of a correction? Or if he takes a loan in BTC, does he have to immediately sell all,
instead of selling a chunk, wait for bids to rebuild, then sell another chunk, to reduce slippage?
Edit: Never mind my silly question, someone gave the answer I was looking for in the wall observer thread.
The current BTC interest rate is quite atypical, BTW. The average daily rate for the last 90 days is 0.0184% for BTC and 0.0768% for USD
So if i have 100 btc to loan it , where to start ? bitfinex? how much could i earn daily/monthly?
Yes, you can do it on Bitfinex.Open an account, send your BTC (or USD with a bank account if you get yourself verified) there, Put your funds in the "deposit" wallet (instead of "trading" or "exchange") and go to "Total return swaps".
If you loan BTC right now you earn 0.15% a day.
If you loan USD right now you earn 0.08% a day.
This is the flash return rate ("the default"), but you can put a different percentage and people can accept your offer.
So if i have 100 btc to loan it , where to start ? bitfinex? how much could i earn daily/monthly?
You're all welcome
I'm glad my loan sharkery is amusing to all
I'm glad my loan sharkery is amusing to all
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