Hi guys,

I just would like to say that I have same problem of understanding this, specially this statement

Quote from: bytemaster on September 07, 2014, 07:22:28 pm

"Going short/long at the same time is equivalent to holding BTSX with an option to double your stake at todays prices at any time."

The way I understand this statement is if I have 100000BTSX and split it 50% in BTSX short and 50% buy bitUSD long then in some time in the future I should be able to double my original 100000BTSX. It would be really great if somebody who has better understanding of  this to try to explain it to some of us who don't get it.

Regards 

Quote from: Markus on September 06, 2014, 10:48:22 am

How is this CoinoUSD different to a Ripple IOU?

Ripple would be equal to NXT, both provide the infrastructure. Then a backer (Coino...) or a bank that acts as a gateway issues the USD IOU. I don't see a real difference except maybe that it might be easier for banks to plug into the ripple trading network (regarding interface and legal), which is my speculation though...

This proposal is problematic because it destroys the fungibility of BitUSD. BitUSD that haven't moved are suddenly different from, and more valuable than, other BitUSD. His proposal encourages "banks" to spring up -- businesses that allow users to deposit their BitUSD on a fiduciary basis, and try really hard to keep from moving their BitUSD. Users then have some outside mechanism to move around claims against BitUSD deposits while the deposits themselves sit in the bank vaults and accumulate the maximum interest since they never move. The users and banks would then split the enhanced interest they extract, making this arrangement economically sustainable.
You can read about my alternative proposal here:  https://bitsharestalk.org/index.php?topic=8422.0

A short position has collateral from two sources: one is the BTSX paid by the BitAsset buyer (I call this BTSX the reserve); the other is the BTSX paid by the short seller (I call this BTSX the margin). The collateral = reserve + margin. The current rule is that the margin needs to be at least equal to the reserve initially (200% backed initially). At some point the short seller covers or the DAC does a margin call. If the price of BTSX goes down with respect to the BitAsset, then some of the margin is needed to cover the BitAsset debt when covering. Whether the short seller covers at a loss or the DAC does a margin call, the mechanism would work the same way it currently does. However, if the short seller covers at a profit, things would work a little bit differently compared to today. If the short position is covered at a profit, that means that only a portion of the reserve is needed to pay the debt and the remainder is profit. This remainder should be split according to some percentage specified when the short position was created and one part is paid as profit to the short seller and the other part is collected by the DAC as a fee (in reality the cover would require excess BitAssets to not only cover the debt but also the value of the fee according to the current price so that the DAC essentially trades the BTSX fee for the BitAsset fee). These fees are collected to pay variable interest to the BitAsset holders in a way similar to what I described earlier.

Is it a way to make orders depending on bitUSD/USD ratio?
I mean how can I put an order to buy bitUSD for example when bitUSD is 85% of USD and lower without the need to calculate it manual every time?