Nice post and will follow as i want more of this but i still have unanswered questions on margin trading, especially when i would be called and if that can be avoided by putting more collateral. So my favourite post would be 100% practical, e.g. i have 100K BTS with BTS at 0.2 USD. If i assume that BTS price would never tumble below 0.05 USD, i should be 100% save by putting a collateral of "x4", right? And secondly, if price would go close to 0.05, can i put more BTS to save me from margin call?
Oops, quick edit for one more thing, this huge yellow zone you talk about at the end, how to buy into this? Not clear, i always feel so stupid with Bitshares while actually i am not, confusing :-)
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yes, it is recommended to have at least 3x backing but BTS allows for up to 6x backing. in the case that bts's value drops, you can add to your collateral or pay back some of your borrowed "smart assets" such as bitUSD or bitCNY