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> to hedge exposure gained by trading against its customers This is not how hedging works and he also explains this in a subsequent tweet: https://twitter.com/

> to hedge exposure gained by trading against its customers This is not how hedging works and he also explains this in a subsequent tweet: https://twitter.com/kris/status/1591928970693726211 https://twitter.com/kris/status/1591928970693726211 It's not "trading against it's customers" and very common practice with basically all exchanges to make sure liquidity is always there

anonymoushn 4y ago
If the exchange is not trading against its customers, and it is only custodying customer funds and collecting fees, how does it regularly acquire 20 million dollars of shitcoin exposure? Here's one way a crypto exchange could work: - many users deposit coins and fiat - some of those users are market makers - the users trade with each other - the exchange just custodies the coins and fiat and collects fees - the exchange does not need to send customer funds to another exchange because it is not assuming twenty million dollars of directional risk Can you explain your understanding of how it should work instead? Can you explain why people with these roles work at an exchange, an entity that does not engage in systematic trading or take on any nonzero amount of directional risk ever? https://www.linkedin.com/in/chen-x-74a83322/ https://www.linkedin.com/in/chen-x-74a83322/ https://www.linkedin.com/in/wanghan https://www.linkedin.com/in/wanghan https://www.linkedin.com/in/nicolasbourdrez/ https://www.linkedin.com/in/nicolasbourdrez/ https://www.linkedin.com/in/ronaldyiap/ https://www.linkedin.com/in/ronaldyiap/ https://www.linkedin.com/in/ernest-lim-88529b135/ https://www.linkedin.com/in/ernest-lim-88529b135/ https://www.linkedin.com/in/pravin-pathmanathan/ https://www.linkedin.com/in/pravin-pathmanathan/ https://www.linkedin.com/in/jin-marcus-wang/ https://www.linkedin.com/in/jin-marcus-wang/ https://www.linkedin.com/in/calen-zeng-b3324a196/ https://www.linkedin.com/in/calen-zeng-b3324a196/ https://www.linkedin.com/in/zzhuaj/ https://www.linkedin.com/in/zzhuaj/ https://www.linkedin.com/in/yining-liu-763a5041/ https://www.linkedin.com/in/yining-liu-763a5041/ https://www.linkedin.com/in/yu-tao-930721/ https://www.linkedin.com/in/yu-tao-930721/ https://www.linkedin.com/in/tom-chan-812b4090/ https://www.linkedin.com/in/tom-chan-812b4090/ https://www.linkedin.com/in/mark-amsellem-71a1a132/ https://www.linkedin.com/in/mark-amsellem-71a1a132/ https://www.linkedin.com/in/oliver-jieren-jia-636166b6/ https://www.linkedin.com/in/oliver-jieren-jia-636166b6/ Can you explain why they are hiring for these HFT/systematic trading roles? https://www.linkedin.com/jobs/view/3262469829/ https://www.linkedin.com/jobs/view/3262469829/ https://www.linkedin.com/jobs/view/3254166615/ https://www.linkedin.com/jobs/view/3254166615/ https://www.linkedin.com/jobs/view/3104863804/ https://www.linkedin.com/jobs/view/3104863804/ Thanks.
- onlyrealcuzzo 4y ago
  > Can you explain why they are hiring for these HFT/systematic trading roles? To front run customer orders and make a profit? Crypto is unregulated. Why not?
valdiorn 4y ago
> This is not how hedging works I read his tweet like eight times, going "wait I don't understand what he's saying, what am I missing?". Then I finally realised he was full of shit. No, that REALLY isn't how hedging works, indeed! :)

anonymoushn 4y ago

If the exchange is not trading against its customers, and it is only custodying customer funds and collecting fees, how does it regularly acquire 20 million dollars of shitcoin exposure? Here's one way a crypto exchange could work: - many users deposit coins and fiat - some of those users are market makers - the users trade with each other - the exchange just custodies the coins and fiat and collects fees - the exchange does not need to send customer funds to another exchange because it is not assuming twenty million dollars of directional risk Can you explain your understanding of how it should work instead? Can you explain why people with these roles work at an exchange, an entity that does not engage in systematic trading or take on any nonzero amount of directional risk ever? https://www.linkedin.com/in/chen-x-74a83322/ https://www.linkedin.com/in/chen-x-74a83322/ https://www.linkedin.com/in/wanghan https://www.linkedin.com/in/wanghan https://www.linkedin.com/in/nicolasbourdrez/ https://www.linkedin.com/in/nicolasbourdrez/ https://www.linkedin.com/in/ronaldyiap/ https://www.linkedin.com/in/ronaldyiap/ https://www.linkedin.com/in/ernest-lim-88529b135/ https://www.linkedin.com/in/ernest-lim-88529b135/ https://www.linkedin.com/in/pravin-pathmanathan/ https://www.linkedin.com/in/pravin-pathmanathan/ https://www.linkedin.com/in/jin-marcus-wang/ https://www.linkedin.com/in/jin-marcus-wang/ https://www.linkedin.com/in/calen-zeng-b3324a196/ https://www.linkedin.com/in/calen-zeng-b3324a196/ https://www.linkedin.com/in/zzhuaj/ https://www.linkedin.com/in/zzhuaj/ https://www.linkedin.com/in/yining-liu-763a5041/ https://www.linkedin.com/in/yining-liu-763a5041/ https://www.linkedin.com/in/yu-tao-930721/ https://www.linkedin.com/in/yu-tao-930721/ https://www.linkedin.com/in/tom-chan-812b4090/ https://www.linkedin.com/in/tom-chan-812b4090/ https://www.linkedin.com/in/mark-amsellem-71a1a132/ https://www.linkedin.com/in/mark-amsellem-71a1a132/ https://www.linkedin.com/in/oliver-jieren-jia-636166b6/ https://www.linkedin.com/in/oliver-jieren-jia-636166b6/ Can you explain why they are hiring for these HFT/systematic trading roles? https://www.linkedin.com/jobs/view/3262469829/ https://www.linkedin.com/jobs/view/3262469829/ https://www.linkedin.com/jobs/view/3254166615/ https://www.linkedin.com/jobs/view/3254166615/ https://www.linkedin.com/jobs/view/3104863804/ https://www.linkedin.com/jobs/view/3104863804/ Thanks.

onlyrealcuzzo 4y ago
> Can you explain why they are hiring for these HFT/systematic trading roles? To front run customer orders and make a profit? Crypto is unregulated. Why not?

valdiorn 4y ago

> This is not how hedging works I read his tweet like eight times, going "wait I don't understand what he's saying, what am I missing?". Then I finally realised he was full of shit. No, that REALLY isn't how hedging works, indeed! :)