Quote from: molecular on June 26, 2014, 08:28:49 PM

Quote from: Nicholas-Carraway on June 26, 2014, 08:11:16 PM

Quote from: smiley123 on June 26, 2014, 08:05:41 PM

Quote from: Raystonn on June 26, 2014, 07:52:51 PM

You borrow USD to buy coins. You borrow coins to buy USD (this is shorting BTC).

Or you can borrow all available USD and not buy coins, just to deny these funds to real longs. Then you can borrow all available coins and short, pushing the market down. This would show as the market dropping due to a lack of buying, which is what TERA has been pointing at for a while now.

To make things even more complex, anything you put in your trading wallet can be used to borrow against at BFX, weather is it USD, BTC, or LTC. For example, you could have LTC in your trading wallet and borrow the USD value of that LTC to go long on BTC.

If you look at the Chart Blitz posted, it doesn't appear that the borrowed $ (on balance) has been used to purchase BTC otherwise the price would have moved up as margin increased. Right?

That doesn't follow, does it? There could've been selling pressure absorbing the demand. In other words: maybe the market would've dropped without the longs being opened. In fact it makes sense people would open longs even when the market is falling.

That is a definitely possibility. It's just hard to imagine typical speculators would keep doing that in a declining market and driving margin to all time highs. We'll see I guess..