3 ms·
What actually is the point of selling someone an option? Do enough people buy them and lose to make it worthwhile for the seller? Isn't this literally just lega
by globular-toast 2y ago
What actually is the point of selling someone an option? Do enough people buy them and lose to make it worthwhile for the seller? Isn't this literally just legalised gambling? Are there enough addicts to make it lucrative like other gambling? Or are these resold packaged up into something that nobody reads à la synthetic CDOs?
- dboreham 2y agoIt's basically gambling+, but the party on the other side of the trade is like a casino. On average they make money (usually). +There are some non-gambling reasons for stock options trading, akin to commodities options being used to reduce risks in farming.