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141  Economy / Economics / Re: Would a modern options and derivatives market reduce or increase volatility? on: June 28, 2014, 03:00:37 AM
I can't comment about futures but I trade options.

With stocks, the volatility is not because of options.  Its because of the underlying product. 

But what options affect is liquidity.  Options market makers have to do something called "delta hedging".  When they write options (puts or calls) they have to long or the short the underlying product so that they are hedged against directional moves.  Because options are leveraged 100:1 the MMs are forced to buy/sell the equivalent amount of stock to stay delta hedged.  This creates liquidity because the options MMs are forced to constantly trade the stock

For example there are 2 3D stocks SSYS & DDD.  They are roughly the same in market cap.  SSYS is $5.5B & DDD is $6.1B

SSYS only has monthly options but DDD has weekly options.  If you trade both you will find that there is more liquidity in DDD.  Its much easier to get in and out of trade and the spread is tighter.  So DDD is easier for day trading scalpers to deal with

They are both similar in volatility they both had big rise (200%) and crashed (78% from top).  They both have about 40-45% monthly implied volatility



In practice, derivative increased the volatility of the underlying product because of the leverage build into them.


142  Economy / Speculation / Re: Constant Downward Pressure Due To Miners? on: June 27, 2014, 05:34:27 PM
The miners would not sell on lose, at least the smarter ones, so we know that most of the miners are holding at least half of the mined coins for an eventual bubble.

If they are smart, they would have known it would be cheaper to buy coin directly rather than to mine for it.
143  Economy / Economics / Re: Bitcoin vs Uber on: June 12, 2014, 07:18:56 PM
Bitcoin market cap:  $8.3 billion
Uber the taxi app:  $18+ billion
 
Is it just me, or something is wrong with this picture  Huh

What exactly would be wrong with that?
Here is a hint:

Market cap is the collectively assigned value of an investment item by all market participants.

To mankind, the value of cryptocurrency should be 10s, 100s, if not 1000s times bigger than a taxi app, not a 46%.


The market participants already assigned the value as you have stated here.

Not what you think both are worth.
144  Economy / Economics / Re: Guess Which State Bitcoin is About to be Declared Legal Currency? on: June 12, 2014, 07:03:37 PM
New York usually follow California's foot step.

So, NY be next state to allow bitcoin as legal tendency?
145  Economy / Economics / Re: Expedia Starts Accepting Bitcoin for Hotel Bookings on: June 12, 2014, 07:02:21 PM
Won't be long before other travel agency starts accepting bitcoin also.
146  Economy / Economics / Re: Investment advice? on: June 12, 2014, 06:55:06 PM
Many posters here already mention real estate.

Rent it out to increase your yield as well as the capital gain from appreciation.
147  Other / Off-topic / Re: What programming language do you love? on: June 12, 2014, 06:42:29 PM
There are lot of great language features in Java, which is not in this but equally important for making Java, Best programming language of last two decades e.g.
- Java is Secure, security is not only embedded in language, but also provided by platform.
- Java Array is bounded rather than C array, which is unbounded.
- Java is Strongly typed language, which means more help from compiler and easier to manage.
- Rich set of data types
- Rich set of operators



And 2 problems widely known of everyone:
-Performance: Java makes simple things complicated, so a simple C++ application will solve the problem faster
-String: Java has the worst string management what someone could think. Creating new instances of String or every function just to save the internal literal string is kind of ridiculous. If you find yoursel building a Path you will use so many strings that propably every oher language will do it faster, not to mention the less use of pointers and memory.

It is a trade off. You can implement using Java very quick. And you can integrate it with existing open source project with scaling capability.

148  Other / Off-topic / Re: Places you want to travel to before you die on: June 12, 2014, 06:35:46 PM
Explore the center of the universe and the edge of the universe.
149  Other / Off-topic / Re: Best Softwares For Keeping PC Secure ? on: June 12, 2014, 06:28:35 PM
I don't use any. I go in bareback,
Just hope you won't regret it in some point of time..! with people always tring to invade your Security privacy and all.. its wiser to have some kind of security to protect yourself online.

I use Ubuntu I'm sure I'll be fine.


This is only true for now.

As soon as the market share is big for Ubuntu, hackers will target the platform and find way to exploit it.
150  Other / Off-topic / Re: How to get rid of stubborn belly fat ? on: June 12, 2014, 06:27:28 PM
Stay away from food with high carbon hydrate and sugar.
 
151  Other / Off-topic / Re: Why do people deny the climate change? on: June 12, 2014, 06:16:22 PM
The same reason.

Why do people believe in climate change?
152  Other / Off-topic / Re: I'm in love! on: June 12, 2014, 06:06:37 PM
With light comes darkness. With love comes hatefulness.

Choose wisely when things don't go according to plan.
153  Economy / Trading Discussion / Re: Cryptsy could be working on fractional reserve. on: June 12, 2014, 06:03:34 PM
Cryptsy had security issue back in December. Who know how much bitcoin were stolen?


The next major exchange blow out will probably be Crytsy.
154  Economy / Trading Discussion / Re: Proof of Residency on: June 12, 2014, 05:55:14 PM
Utility bill signed by district court clerk usually work also.
155  Economy / Trading Discussion / Re: What's the fastest way to buy bitcoin? on: June 12, 2014, 05:43:53 PM
Coinbase if you are in US.

Bitstamp if you are in Euro zone.

localbitcoin if you are anywhere else.
156  Economy / Trading Discussion / Re: Can someone teach me? on: June 12, 2014, 05:29:49 PM
Understand the fundamental.

Buy low and sell high.
157  Other / Politics & Society / Re: How long would it take for Anarchy to start working? on: June 01, 2014, 10:33:11 AM
Society function the way body does.

Need the body and the brain (government).
158  Other / Politics & Society / Re: Truthseeker: US plans 'first strike' on Russia on: June 01, 2014, 10:19:32 AM
Unlikely.

It will become WW3.
159  Economy / Trading Discussion / Re: I'm a trader and want to learn how to build my own bitcoin bot on: June 01, 2014, 10:15:04 AM
Steep learning curve.

Easier to use pre-existing one and pay someone to make a customizable module.
160  Economy / Trading Discussion / Re: Orders (qustions) on: June 01, 2014, 10:05:34 AM
If you are new to trading, you need to stay with limit order and stay away from market order.


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