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Title: Hedging Question Post by: ptshamrock on January 20, 2012, 02:57:03 PM Can somebody explain to me how SR or other sites which offer hedging do that in practice?
Title: Re: Hedging Question Post by: Revalin on January 20, 2012, 03:02:47 PM They likely just trade the escrowed coins to USD, then trade back to BTC for delivery when the buyer releases the funds.
They could also sell short on Bitcoinica, but selling the escrowed funds directly is probably cheaper and easier. Title: Re: Hedging Question Post by: ptshamrock on January 20, 2012, 04:41:32 PM but i assume they do that manualy..could there be a way to automatize this?
Title: Re: Hedging Question Post by: Revalin on January 20, 2012, 04:49:00 PM It's easy to automate. All the major exchanges have a simple API to transfer funds in and out and perform the trades.
For example, mtgox: https://en.bitcoin.it/wiki/MtGox/API Title: Re: Hedging Question Post by: MPOE-PR on February 29, 2012, 11:04:06 AM Probably worth giving options (http://polimedia.us/bitcoin/options.php) a look.
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