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What are you going to do to make people not worried about counter-party risk? When you trade options on an exchange the obligations fall on the counter-party,
by stephenbez 13y ago
What are you going to do to make people not worried about counter-party risk?
When you trade options on an exchange the obligations fall on the counter-party, then clearing firm, then clearing house, then exchange.
My concern would be that I would buy some 200 strike calls, then over the course of a few days bitcoin goes to $2000 and both the counter-party and the exchange go bankrupt.
Or alternatively I buy a bunch of 100 puts and bitcoin goes to $.10.