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dyslexit | 9 months ago

This is exactly what the article is arguing people are doing when betting on the Jesus thing:

> [Time Value of Money] The Yes people are betting that, later this year, their counterparties (the No betters) will want cash (to bet on other markets), and so will sell out of their No positions at a higher price.

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> Has this galaxy-brained trade ever gone well? Yes! In late October of last year — a week before the election — Kamala Harris was trading around 0.3% in safe red states like Kentucky, while Donald Trump was trading around 0.3% in safe blue states like Massachusetts. On election day, these prices skyrocketed to about 1.5%, because “No” bettors desperately needed cash to place other bets on the election. Traders who bought “Yes” for 0.3% in late October and sold at 1.5% on election day made a 5x profit!

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JohnMakin|9 months ago

No, not really. What I was doing was playing predictable spikes in volatility in the market over a long span - theoretically i could have done it forever had the market never closed. I also doubt the hillary market moved because of liquidation needs in other markets - it was driven almost entirely by conspiracy theory news. I followed it very closely, it was not this at all.