Quote from: alpha492 on February 11, 2014, 06:30:10 AM

Unfortunately I think it still is a lenders vs traders problem. I hate to sound combative, but BFX halted trades to protect lenders and I understand fully why, but had BFX followed stamp instead of halting any and all trades till recovery I would have made a significant amount from my short position even before you take into consideration the flash crash.

I appreciate BFX's commitment to finding a middle ground but to a trader this is kind of like blasphemy. Speaking as someone who has been trading a few years now you have to understand trading is a game of strategy, moves and counter-moves. A trader may take on a strategy that can incur 10 minor/moderate losses in a row in an expectation that if they stick to the same strategy they will score one big win on the 11th trade. This is kind of a simplified explanation but you have to understand. For many of us the crash down to 530 (following stamp and other exchanges) wasn't a gamble, it was an expectation--part of a longterm strategy. Those who aren't spreadbetting or scalping, which would be a majority b/c btc is a rough environment for short interval strategies, trade in expectation of a major swing. The last two weeks have been full of false signals and sideways markets that most of us have been sucking up losses from and sticking to a swing strategy in expectation we would see a major and profitable swing.

To save the lenders BFX chose to halt trades and wait for a reversal to prices above where the halt began, this utterly crippled a number of traders I'm sure.

It shouldn't be a matter of 'traders vs lenders' but unfortunately in protecting the interests of one group you harmed another. Again I understand why, but this is something worth taking the time to consider when you make these decisions.

EDIT

To append my further post in the future BFX as a matter of policy should always resume trading after a flashcrash below the price at which it was halted

I.E. If you intended to halt trading at 600 trading should be resumed below 600 the inverse is also true for a short squeeze

They didnt halt it to wait for reversal, they waited for more btc to arrive to bitstamp to liquidate on its orderbook.

Rino

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