1. We can almost never be a registered broker for Bitcoin trading. There's almost no law regulating this market either. If you can't trust me now, it's all okay

1. We can almost never be a registered broker for Bitcoin trading. There's almost no law regulating this market either. If you can't trust me now, it's all okay. I have never asked for trust. What I do is to write apps in the way that people feel trustworthy and reliable. If after, say, 3 months, my site grows larger with no known security issues, then the time will make it more trustworthy. 2. Not all people are doing long or short at the same time. Not all people are utilizing their margin fully at the same time. Not all people have active positions at the same time. We have a pool of money to make this possible. 3. Bitcoinica is not an Exchange. We don't match orders ourselves. The rates you see are inclusive of liquidity concerns. If there's excess positions, we trade them in Mt. Gox to balance our portfolio. When the order book is so thin that you can already move the market with your short positions, chances are the forced liquidation has already taken place. (Thin order book -> larger spread -> lower buying rate)