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No they were not hedging they were seeking liquidity because they couldnt get a total fill and ROI in the lowest probability market
by yieldcrv 8mo ago
No they were not hedging they were seeking liquidity because they couldnt get a total fill and ROI in the lowest probability market
- alephnerd 8mo agoWhat I mean is they placed multiples bets saying "US strikes Iran by $DATE" and set a window of various dates with each overlapping over the other in order to help hedge against earlier bets failing. Betting a strike would be on Friday also tracks - anyone who's been outside the West knows they have Friday/Saturday off in Muslim and Jewish countries. It's the same way we in the West tend to conduct strikes on Saturday. Edit: Ah I get what you are saying now.
- yieldcrv 8mo agoI responded to exactly what you mean. The lowest probability date was the Friday because Friday was almost over, it had the highest ROI. It didn't have liquidity for their full amount capital without adversely altering their potential ROI. They searched for liquidity in other markets that would resolve "yes" to the same event. It wasn't a hedge, it wasn't uncertainty, it was liquidity seeking.