Comment by gosub100
2 months ago
Derivatives can be structured in a time-constrained manner that requires them to go up/down in a specific time window, thus amplifying the gains/losses. Also there's generally no way to short an asset without borrowing them with a contract to pay them back (which requires timing the market move and paying rent on the asset). This is something that options contracts solved.
No comments yet
Contribute on Hacker News ↗