It's based on a trade of what a Steem dollar is to a steem unit if a steem unit is $5 and an SBD is 10 then you only get 2 Steem for 1 SBD
If Steem is 2 Dollars and SBD is 10 you get five so the ratios matter between the two if you think steem is going up then sell SBD and buy Steem
IF you think SBD is going up then sell Steem and buy SBD
You have to look at what 1 SBD (Steem Dollar) is trading at ...
https://coinmarketcap.com/currencies/steem-dollars/
If SBD is nearly $10 and STEEM is nearly $5 then 2 STEEM is about 1 SBD
This if fairly misleading then. Steem Dollars "tokens worth about $1 of Steem", if $1 it is actually over $9 (above screenshot).
That is a peg if it falls below a dollar you make interest (well not including vests but that is another story)
Then the term Steem Dollars is misleading and then explanation is very misleading. Do you agree with that?
Definitely it took me a while to get that when I had to look up what the heck does vesting do lol.
https://steemit.com/interest/@sigmajin/understanding-the-steem-economic-system-vests-sbd-steem-dilution-interest-and-all-those-crazy-things
They should change the wording since Steem and SBD trade independently on many markets and therefore have varying values.
i also need to know
It's based on a trade of what a Steem dollar is to a steem unit if a steem unit is $5 and an SBD is 10 then you only get 2 Steem for 1 SBD
If Steem is 2 Dollars and SBD is 10 you get five so the ratios matter between the two if you think steem is going up then sell SBD and buy Steem
IF you think SBD is going up then sell Steem and buy SBD