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How 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 arbit
by perl4ever 7y ago
How 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.