4 ms·
>I am surprised Wall Street doesn’t do this already to create synthetic longs. A comment on the post covers that: It's called a "bucket shop", and it's illegal
by 6yyyyyy 4y ago
>I am surprised Wall Street doesn’t do this already to create synthetic longs.
A comment on the post covers that: It's called a "bucket shop", and it's illegal.
- monero-xmr 4y agoSynthetix has been running a bucket shop for a long time. They added stocks through Kwenta but got spooked and removed them. https://synthetix.io/ https://synthetix.io/
- JumpCrisscross 4y ago> Synthetix has been running a bucket shop for a long time Well, this is an awkward moment to be in a car with a connected friend from Adelaide!
- TeMPOraL 4y agoInvite them to our HN bashing on defi subthread party here!
- JumpCrisscross 4y agoGiven Synthetix is based in NSW, the bashing will come in a more formal forum.
- SilasX 4y agoI don't see how this is describing the same thing: https://en.wikipedia.org/wiki/Bucket_shop_(stock_market) https://en.wikipedia.org/wiki/Bucket_shop_(stock_market) The Wikipedia description of a bucket shop says that it's gambling market on stock prices. The anti-stock idea in the article is a security where the holder is obligated to pay out the same dividends as the underlying stock. Not the same thing, AFAICT.
- julkali 4y agoNot relevant to the discussion but why is it illegal? Would save a lot of transaction fees ...
- ravel-bar-foo 4y agoProbably because the counterparty is the dealer, so the dealer has to manipulate prices and terms in their favor to turn a profit. Also, since no actual stocks trade hands, there is no effect on stock price and no investment value.
- acover 4y agoThere are derivatives that settle in cash[1]. How do they differ from a bucket shop? [1] - https://www.investopedia.com/terms/c/cashsettlement.asp https://www.investopedia.com/terms/c/cashsettlement.asp