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So the way to fix this is to do what banks and stock exchanges do. Operate under a regulatory framework that has defined legal precedence to avoid someone take
by gitfan86 5y ago
So the way to fix this is to do what banks and stock exchanges do. Operate under a regulatory framework that has defined legal precedence to avoid someone take advantage of an unintended loophole. But at that point you are defeating the whole point of crypto being decentralized and permissionless.
- campbel 5y agobingo
- sokoloff 5y agoIsn't the entire $GME thing an example where someone took advantage of a situation where counterparties got way out over their skis and buyers of $GME profited well in excess of any reasonable estimation of Gamestop's promise of business results via what amounts to an unintended loophole?
- deleted 5y ago[deleted]
- vkou 5y agoThere is no bounded 'reasonable' estimation or expectations of how much money you can gain/lose by trading options. They are a force multiplier that can explode very spectacularly, in many different ways, and everyone involved in finance understands that. If you want your gains/losses to be reasonably bound, you have to limit yourself to buying and selling stocks directly. Unfortunately, there's not enough money in that to make a living day-trading.
- jquery 5y agoThe bug that allowed that to happen has essentially been patched. (Risk analysis that didn’t take into account Robinhood giving immediate margin to any rando that signs up). Robinhood very nearly melted down, Lehman Brothers style.
- gitfan86 5y agoNo one ever entered into any agreement where they were expected to buy stocks at reasonable prices. It is like when Kim Kardashian gets paid 50M for a 30 second add on Instagram. I may think that is unreasonable, but I don't have any contract with anyone implying that she be paid a standard actor's wage.