Re:FTX to file for U.S. bankruptcy, CEO resigns
by HDThoreaun on Friday November 11, 2022 @01:07PM
(#33564373)
Definitely alarming, but mostly for counterparty risk. If the exchange is just a middle man then they can't lose as long as they're able to liquidate toxic positions before they're negative. Turns out FTX was also the market maker through alameda and because of that was hesitant to liquidate toxic positions, leading to the embezzlement to try to save alameda and the current crisis.
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Re:FTX to file for U.S. bankruptcy, CEO resigns
by MrMan on Friday November 11, 2022 @04:44PM
(#33567278)
market making in a volatile instrument is not easy. when all instruments are .96 correlated it makes it harder to balance your book. the good thing is that its retail flow but just because its retail doesnt mean you won't lose money when the market jumps in one direction or another.