I understand the logic behind the policy change to prevent fake walls coming from small balances, but I think it's a serious problem that traders are now unable to place orders to close out positions if the orders theoretically exceed the balance available. To clarify, say I'm short 20 btc and my margin balance is low, I can no longer place a 20 btc buy order at a lower price due to the balance requirements; this makes no sense because the entire point of the order is the cover my short and replenish the balance. It can't be that traders cannot preemptively place orders to close out their existing positions. Thoughts?
If we are short then we should at minimum be able to place buy orders for *2x* the amount we are short. Say I'm short 20 BTC: I would then like to be able to cover my short and turn long, i.e buy 40 BTC. This is specially useful in volatile times.
Now, being able to buy back what you're short and go long is obviously different from being able to place 100 x 20 BTC orders and put up a "fake" 2000 BTC buywall - which I believe is what the latest change is meant to prevent. Perhaps some minor adjustment is required.
Of course, we should keep in mind that the reason for this change was that some traders did abuse the freedom BFX previously gave us and that is why we are now more restricted.
However.. there is a slight difference between shaving and cutting your head off.