News for hackers. Stuff that matters.
Re:Statement of SEC Regarding Recent Market Volatility by remolacha on Friday January 29, 2021 @12:24PM (#25959801)
They aren’t essential, but they are actually useful. There have been some experiments with banning shorts, but they lead to larger spreads on longs because market participants have to hedge by going risk-off on longs instead of shorting affirmatively. Shorts can create moments of volatility, but they improve overall trading liquidity and reduce frictional cost of capital.

There are no comments on this comment yet.