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RE: Borrow HERO and Short it

in #bitshares7 years ago

If you believe that BTS will come back, simply increase your collateral ratio as the price of BTS falls. There's no reason to allow a margin call. It's the same as selling low, and that's a bad strategy. Decide on your strategy first. You either believe in BTS long term or you don't. You could consider borrowing another HERO if the price drops down again. This would allow you to sell a second HERO at an even higher value. Then place a buy order for that second hero at the same value as your first trade.

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wow, this is a nice strategy. Thank you so much for this advise :)

So I'm not getting this at all yet. Let's say I borrow a Hero at 1000 BTS and sell it. If the value of BTS increases to the point that it only takes 500 BTS to buy the Hero back haven't I lost 500 BTS? What am I missing here? Help me wrap my head around this. Maybe I need more coffee. lol

Never mind. I figured it out. Definitely takes a few read throughs and just trying it out with a low amount.