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They are absolutely gambling; there are various ways that position can blow up. (Consider counterparty risk.)
by adw 2y ago
They are absolutely gambling; there are various ways that position can blow up. (Consider counterparty risk.)
- Dylan16807 2y agoWhat counterparty risk? You own stocks and you owe stocks. How can that go wrong? But come on, counterparty risk with big institutions is such a small thing. Are you going to tell me that putting your money in a vault is gambling because someone could steal it? Is subscribing to Netflix gambling because the servers might go down? Having a net-zero position is the closest to not gambling anyone can get. How about this, can we agree that having short or long stocks is a high number out of 10 on the gambling scale, but just counterparty risk with an enormous company is a 2 out of 10? What do we call the process of reducing your number from high to 2?