The company makes nearly all of its money on short-term trades, but short-term trades have a much higher tax rate than long-term gains. Since short- and long-te

The company makes nearly all of its money on short-term trades, but short-term trades have a much higher tax rate than long-term gains. Since short- and long-term taxes are calculated in separate buckets, if you create losses in the short-term bucket then you can drastically reduce your tax burden. These aren't really losses though, since they're balanced by opposite long-term bets