Topic: Hedging Question (Read 1175 times)
Probably worth giving options a look.
It's easy to automate. All the major exchanges have a simple API to transfer funds in and out and perform the trades.
For example, mtgox: https://en.bitcoin.it/wiki/MtGox/API
For example, mtgox: https://en.bitcoin.it/wiki/MtGox/API
but i assume they do that manualy..could there be a way to automatize this?
They likely just trade the escrowed coins to USD, then trade back to BTC for delivery when the buyer releases the funds.
They could also sell short on Bitcoinica, but selling the escrowed funds directly is probably cheaper and easier.
They could also sell short on Bitcoinica, but selling the escrowed funds directly is probably cheaper and easier.
Can somebody explain to me how SR or other sites which offer hedging do that in practice?
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