Let me know if this is already discussed somewhere else.
So lets say I want to host a betting game for the next soccer match with Arsenal vs Man united.
So I issue a market pegged asset called 'Ars vs ManU'
I then function as the delegate and produce a price feed according to the outcome of the game.
I can allow people to bet that ManU will win or loose.
People can go long if they think ManU will win and Short if they think ManU will loose.
So if I price the asset at 1bitUSD to 1gameCoin. If the score is '1Ars : ManU 2' and ManU has won the match. I would change the price feed to 2bitUSD to 1gameCoin. So those who went long double their money. Vice-verse if ManU looses.
Have I got the basic idea or am I missing it.