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Classical Market making is probably the safest way to profit from bitcoin as the spread is so damn high. Good luck finding a hedging instrument though.
by Choronzon 13y ago
Classical Market making is probably the safest way to profit from bitcoin as the spread is so damn high. Good luck finding a hedging instrument though.
- Choronzon 13y agohttp://www.amazon.co.uk/Option-Trading-Volatility-Strategies-Techniques/dp/0470497106/ref=la_B001ILM86Y_1_2?s=books&ie=UTF8&qid=1386853418&sr=1-2 http://www.amazon.co.uk/Option-Trading-Volatility-Strategies... An excellent chapter about market making in here,however you would have to adjust it quite a bit for bitcoin.
- throwaway_yy2Di 13y agoIf it's supposedly safe, highly profitable, and no one's doing it (spread's still crazy), something's very very wrong.
- Choronzon 13y agoSlow transaction speeds leave you with inventory for way too long (the bane of market makers ) and as you have no correlated instruments you can't even hedge the inventory you have.