Heyo, thanks for the spot market!
The reason I wanted a spot market is that if I have $90 in my account and I short 100 TRUMPFEB at 10 cents, it says I have like 5x leverage and can be liquidated around 60 cents (even though my max loss is covered by my cash)
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On the other hand if I buy 100 TRUMPGO at 90c it doesn't say I am levered 5x and doesn't say I can be liquidated
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so like what's the deal with liquidating people who can 100% cover any loss
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Hi, I'd really love to hear about how FTX calculates leverage and margin and exit price and such.
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Saying that it's a display bug is not that helpful. If I have my position liquidated while my collateral is larger than my max loss at expiration, I will be quite upset, and I haven't heard anything that would indicate that's not possible.
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As an example, this subaccount has $0.845 and shorted 1 TRUMPFEB from $0.16.
If it had made the same trade in the spot market, it could never be liquidated, but FTX will liquidate it at 60 cents. Unfortunately the spot market has sad size and sad spreads, maybe because 1% fee :(
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The "long 1 trumpfeb" subaccount with $0.166 on hand isn't even allowed to buy 1 trumpfeb for $0.163 !
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So imo it doesn't seem like the rules FTX applies to futures markets is a great fit for instruments like TRUMPFEB, based on the combination of closing out short accounts that mathematically cannot go negative
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and not permitting long accounts to buy the size they can afford.
Thanks.
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Check your current account collateral -- I suspect, given the display, that it will be less than the max loss of $0.84 (maybe only very slightly less)
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