First of all, I wish to thank @tommyl33 and @lorasia who show interests in wanting to understand further on trading between steem and SBD.

Let me put this information ahead in a simple stupid manner, so we can easily understand and follow why the trade and how does it happen.

Steem

Is the crypto asset of Steem blockchain. We use this as a value of our transaction. If we do not associate it with currency, it's only a game token. When you go to the arcade, if you do not wish to play game, it's okay if you do not buy those token with cash. Best of all, in Steem arcade, you can play games to earn token! You can write to earn token! You can create video to earn token. Many more dApps has been introduced. Those are the ways to earn token. Or if you choose to go ahead and enjoy, why not spend some cash, buy some token and start playing at a higher level?

SBD

Now this part is a little confused. In my book, SBD is a form of in game token that represent as $1 value. When you get paid, you get paid in SBD. You can choose to use this payout, exchange them with Steem from other users or exchange. That way, you will have Steem to continue the game. Nevertheless, if you decided to go home early as your mom start shouting at you, why not bring the SBD back to the counter, and cash out? So your game will be continue running whilst you're home doing your homework.

Trade

I have always refer crypto as asset than currency. Simply because the token themselves has no absolute face value. Unlike digital currency, that is pegged by a real currency or commodities behind to support the "value". Whereas crypto are always referring currency as their value. Just like coffee, orange juice, corn. The biggest advantage of crypto compare to soft commodities is, we can exchange these cryptos easily between different types. But you don't normally see people barter their coffee for orange juice(or do they? I think no).

Relationship

I don't know about others, but I think the relationship between SBD and Steem has always been very demanding on Steem. For one reason, there's too much SBD flow to the market as SBD being printed when our author reward mature. But, when the SBD debts too high, exceeding certain percentage and the blockchain will stop printing SBD. What's left for payout will be entirely in Steem. Imagine this, SBD become rare, and one will have to pay more amount of Steem to obtain an SBD. Either way, these two will automatically balancing their value, because when there's too much SBD, stop printing. When there's too much Steem, Steem price devalued even faster. Automatically, buying back a "stable coin" would mean to keep our account value stable instead of continue falling with more Steem bring printed.

Triad

What we failed to notice is, all transactions are in triads. Steem/USD and SBD/USD. As soon as we talk about Steem, we always refer to Steem and SBD, but totally omitted these two financial tool has their own characteristics against the Erica dollar! When people shout, oh no! Steem is falling! But they always forgot to mention, falling against what? Bitcoin? Eth? SBD? As I mentioned earlier, it's always against USD. And people tend to reverse situation by putting dollar at the back. Where psychologically it always instruct us to cash out and run away with American dollar.

Reverse psychology

Now, if we put the dollar sign in front, what seems to be falling become mooning. Why? Because, now with the same amount of dollar you have in have, you can obtain more tokens! For example, current market rate, with 1 steem I can only get back $0.36, that suck. What if, we put in a dollar? How much Steem do we get? 2.778steem yo! Note that, this applies to SBD as well, but since SBD value is so "stable" hovering around 1$, there's less opportunity to speculate SBD.

Free investment

Back to SBD. Do you want to take the trouble, to send $1 in to the market, and change them into 2.778steem? I guess by the time, the exchange taken some fee, some other crypto seller outbid your ask price, by the time you got your crypto, there should be less than 2.778steem already.

Do away the dollar sign

Again I would like to say this, no need to do aways with the SBD, what's more important is we need to remove the dollar sign in our mind. What can we do is, save up a certain amount of Steem and SBD in liquid form, trade them with the market and only them, not any other currency. Simple buy low sell high strategy it is. I have mentioned about this method few days ago. Hit and run. I have taken down my screenshots and we will come back to the technical part of this trick tomorrow.