4 ms·
perhaps it's possible through enough layers of indirection to create plausible deniability... but generally this type of transaction would be considered self-de
by scottjg 7y ago
perhaps it's possible through enough layers of indirection to create plausible deniability... but generally this type of transaction would be considered self-dealing, which is illegal.
- perl4ever 7y agoHow would you even do it, as a nobody with no connections? You have two accounts and your broker isn't linking them up for you. Making a sham trade at an arbitrary price with yourself is not what I was describing. My idea was the calls and the puts are as close to at the money as possible, and the counterparties are just random people with no pre-arrangement. If you're going to simply do fraud, then the constraints don't seem interesting to me.
- thoughtstheseus 7y agoNot directly related but if you create synthetic positions, say you use derivatives to exit a position while still holding the asset you’re supposed to report it as a sale for tax purposes. Complex positions often are not perfectly hedged sometimes to prevent this as the tax benefit exceeds the risk.