Re:How to bet against the bitcoin megabubble
by Choronzon on Thursday December 12, 2013 @07:53AM
(#6894151)
Classical Market making is probably the safest way to profit from bitcoin as the spread is so damn high. Good luck finding a hedging instrument though.
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Re:How to bet against the bitcoin megabubble
by throwaway_yy2Di on Thursday December 12, 2013 @08:11AM
(#6894202)
If it's supposedly safe, highly profitable, and no one's doing it (spread's still crazy), something's very very wrong.
Re:How to bet against the bitcoin megabubble
by Choronzon on Thursday December 12, 2013 @08:12AM
(#6894204)
Slow transaction speeds leave you with inventory for way too long (the bane of market makers ) and as you have no correlated instruments you can't even hedge the inventory you have.
Re:How to bet against the bitcoin megabubble
by Choronzon on Thursday December 12, 2013 @08:10AM
(#6894196)
http://www.amazon.co.uk/Option-Trading-Volatility-Strategies...
An excellent chapter about market making in here,however you would have to adjust it quite a bit for bitcoin.