I already trade futures and indexes using fiat as margin deposit for leveraged trading. It's legal, low cost and highly liquid.
If I used Bitcoin as security instead, then I would be vulnerable to margin call on my margin, as well as my trading, if fiat/
BTC rate continues down.
As the future markets operate - you go short a future on the nasdaq , or go long on the nasdaq , against other members.
Or are you talking about P2P deal making?
Where would your liquidity come from? Would you not be arbitraged to death?
Sorry if I misunderstand you, I am not trying to be stupid, it comes naturally.
![Wink](https://bitcointalk.org/Smileys/default/wink.gif)
Initially, leveraging will not be available, so you will have to deposit the amount that you invest on the index.
Concerning "P2P deal making" question- all market players will invest via our exchange platform. same as investors do in any futures exchange
This means - order execution will be immediate. meaning there is no "lag-till-confirmation" as is the case with the P2P solutions.
concerning "arbitraged to death" - As the is no arbitrage, this is not a concern
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