Why would someone need bitUSD to sell bitshares? Isn't bitUSD what you get when you sell bitshares?
Is "sell" a typo, and you meant buy?
If someone was being forced to sell bitshares/bitUSD due to margin call, the sell order would need to continuously adjust lower, losing more and more money for the borrower (until his capital goes to zero in which case the exchange eats the losses). So either we don't understand what you're saying, or it's something else entirely. If someone continuously front-runs the sell order for 36mm BTS, then this is a major problem bc the margin-call will never be completed. So the margin seller wouldn't be on the edge of his nails, he'd be crying bc he's going to lose everything-- especially with his mongo order sitting in there attracting anyone with two cents of sense to front-run him.
This might be the exact explanation, but from your answer we still don't understand the page any better than we did when we first looked at it.
I'm trying to make sense of what you're saying but you might be confusing the concepts a bit.
Settlement and margin call are only relevant for people who have borrowed bitUSD with bts as collateral.
If the price of bts drops too low, there will be a margin call.
Settlement is a bit different. If someone has bitUSD (borrowed or not, it doesn't matter) and presses the force settlement button then he will be given bitshares no matter what 24 hours later.
So basically the people with the lowest collateral will lose their bitshares, NO MATTER HOW MUCH collateral they have.
This is the most dangerous and most important point about borrowing on bitshares. Don't ever be in the list of accounts with the least collateral no matter how safe you think you are.
Because even if you can never be margin called you can still be force settled.
And it's actually happening in huge numbers on the bitCNY market, but not that much on the bitUSD market.
Does this explanation make more sense?
Again if you haven't borrowed anything, then all of this doesn't apply to you, and maybe that's where your confusion about selling and buying is coming from?
I took a screen shot that show when the settlements are happening and at which price. Look at the bottom left corner.
It basically means bitUSD will be taken out of circulation when the settlement happens.