|
brendio (OP)
|
 |
April 15, 2012, 12:59:32 PM
Last edit: April 15, 2012, 01:46:43 PM by brendio |
|
I would like to borrow 125 GLBSE PureMining shares. I willing pay all the dividends paid during the borrowing period plus an extra 15% of dividends as a borrowing fee. I would like a minimum term of a week, but potentially ongoing with say 7 days notice of termination from either party.
I'm negotiable on exact terms.
My otc rating is under the same nick. I could possibly post collateral with a third party, if required. Could do smaller quantities, but I would want at least 40 in a lot to make it worthwhile.
Surely there are some buy and hold investors out there who would like to increase their income?
|
|
|
|
|
|
|
|
|
|
|
"You Asked For Change, We Gave You Coins" -- casascius
|
|
|
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
|
|
|
Meni Rosenfeld
Donator
Legendary
 Offline
Activity: 2058
Merit: 1054
|
|
April 15, 2012, 01:08:44 PM |
|
Watching.
|
|
|
|
Sukrim
Legendary
Offline
Activity: 2618
Merit: 1006
|
|
April 15, 2012, 01:17:19 PM |
|
Does it have to be PureMining or would equivalent contracts also work? There are some out there that are fairly similar (YABMC, Bitbond, Gigamining...).
It seems to me as if you want to play/mess with the PM share price a bit though (PureMining is valued higher than some equivalent contracts), selling these shares, buying an equivalent different contract and paying your dividends + 15% of these dividends (a few Bitcents) from there... interesting idea.
|
|
|
|
|
brendio (OP)
|
|
April 15, 2012, 01:21:50 PM |
|
Does it have to be PureMining or would equivalent contracts also work? There are some out there that are fairly similar (YABMC, Bitbond, Gigamining...).
It seems to me as if you want to play/mess with the PM share price a bit though (PureMining is valued higher than some equivalent contracts), selling these shares, buying an equivalent different contract and paying your dividends + 15% of these dividends (a few Bitcents) from there... interesting idea.
Close, yes. A bit of arbitrage. Buying a different contract introduces mismatched counterparty risk. My intended alternative investment is on a different exchange. |
|
|
|
|
brendio (OP)
|
|
April 15, 2012, 01:23:17 PM |
|
I would like to borrow 125 GLBSE PureMining shares. I willing pay all the dividends paid during the borrowing period plus an extra 15% of dividends as a borrowing fee. I would like a minimum term of a week, but potentially ongoing with say 7 days notice of termination from either party.
I'm negotiable on exact terms.
My otc rating is under the same nick. I could possibly post collateral with a third party, if required. Could do smaller quantities, but I would want at least 40 in a lot to make it worthwhile.
Surely there are some buy and hold investors out there who would like to increase their income?
What real-world security would this resemble the most I wonder. An option ? But then, I don't think those pay DIV on the underlying. Do they ? At any rate, interesting  I intend to short-sell the asset. I plan to aid in efficient price discovery. |
|
|
|
Sukrim
Legendary
Offline
Activity: 2618
Merit: 1006
|
|
April 15, 2012, 01:36:32 PM |
|
Seems like you want to buy http://polimedia.us/bitcoin/mpex.php?mpsic=F.PURE.SYNTH in bulk and do arbitrage there. Interesting indeed. PureMining seems to be in high demand still by the way, the high rate of dividends surely was a right move of Meni! |
|
|
|
|
brendio (OP)
|
|
April 15, 2012, 01:39:11 PM |
|
|
|
|
|
|
brendio (OP)
|
|
April 15, 2012, 01:51:22 PM |
|
znort987 has lent me 125 PureMining shares.
|
|
|
|
|
PatrickHarnett
|
|
April 15, 2012, 06:51:16 PM |
|
Sorry, I had some, but they sold again for a modest profit. Have fun.
|
|
|
|
|
wachtwoord
Legendary
Offline
Activity: 2324
Merit: 1125
|
|
April 15, 2012, 07:01:33 PM |
|
lol I knew his was short selling related after I read the first post 'Normally' lending shares yields the lending party the right to receive the dividends without the extra 15%. The fee for lending the shares is determined by an open market and expressed in yearly effective interest on the base value of the shares. Collateral in fiat is in my case also received and updated nightly based on the closing price of the day. |
|
|
|
|
copumpkin
Donator
Sr. Member
Offline
Activity: 266
Merit: 252
I'm actually a pineapple
|
|
April 15, 2012, 08:43:51 PM |
|
lol I knew his was short selling related after I read the first post I'd hope so, as there aren't many other reasons to borrow shares  Once the mining perpetuity market gets really nice and liquid, there will be plenty of opportunities for pairs trading/stat arb. Should be interesting! |
|
|
|
|
wachtwoord
Legendary
Offline
Activity: 2324
Merit: 1125
|
|
April 15, 2012, 08:53:12 PM |
|
I stated that because there was speculation in the thread about why he'd borrow shares and no-one had it right until Brendio said the reason himself.
|
|
|
|
|
|
brendio (OP)
|
|
April 16, 2012, 12:30:32 AM |
|
'Normally' lending shares yields the lending party the right to receive the dividends without the extra 15%. The fee for lending the shares is determined by an open market and expressed in yearly effective interest on the base value of the shares.
Yes determined by market. That was my offer. It was accepted. I thought it a much easier way to calculate by referring it to the dividend yield, which for a bond is relatively constant. For a normal share, a percentage of share value would be more useful. The dividend of a bond is much less variable than the market price. |
|
|
|
|
brendio (OP)
|
|
June 24, 2012, 01:12:29 PM |
|
znort987 has lent me 125 PureMining shares.
I have indeed. I have returned the shares to znort987. Thank you for the deal. |
|
|
|
|
