Shorting any asset is agreeing to sell it at the current price(ish) on a future date. So yes, a bet that it will go down in value. Doing that without having a corresponding right to own the asset is “naked short selling”; doing it with either ownership of the asset or at least the contractual right to own the asset is “covered short selling”. Naked short selling is mostly illegal on many developed markets (including the US, although the wordings around “right to own” are a bit weak).
Either way, no new units of the underlying asset are created, and for every agreed sale of a unit, a purchase of a unit is also agreed (as you say above), so the net difference is zero, every time.
The ones buying the contract don’t own the asset until the strike date. So you don’t have two owners at the same time. One owns the asset, the other owns a contract to buy the asset in future.
When market events turn against market participants (such as during a “short squeeze”, the pressure is on the short sellers, not the underlying asset itself. The short sellers may get wiped out, or go bankrupt, or not be able to pay their debts, but the asset itself is unaffected - the market price of the asset might change, but there is no change to the asset itself, nor any change to how many units of it exist.
There are two types of broker/custodian - fiduciary (sometimes called “full service”) and non-fiduciary.
Full service ones (such as Interactive Brokers) give you the option to allow them to lend/repo your assets in exchange for a cut of the fees they generate, or not - your choice. Customer assets are segregated from company assets.
Non-fiduciary brokers (such as Robinhood) are basically just borrowing your funds, don’t have that separation, can do what they like with your money, and are basically just promising you you’ll get what you expect, as you describe. Best avoided, and not the only option available.
Digitalisation of exchanges makes it easier and quicker to do all of this, but it didn’t herald the start of this - short selling is just a sales purchase agreement, a contract. Contracts have existed for millennia.
Sometimes people sign contracts they then can’t deliver on - this is counterparty risk. It’s part of the free-ish market though, and nothing to do with governments, fiat currency, central banks, etc. The vast majority of trades and contracts are by and between private individuals and companies 🤷♀️
ETF’s aren’t derivatives… and when shorted, no new units are created, it doesn’t work the same way as CFD’s, which do act the way described above. CDO’s caused a problem because nobody knew what the underlying individual debts were so they couldn’t be unwound quickly when a counterparty went bust, whereas an ETF with only one holding (ie BTC) is literally the most simple simple thing to unwind, and unlike a collection of different debts, is entirely fungible
Agree. South America has my vote. Given politics, Brazil might be too risky. Argentina, too chaotic. Uruguay is a solid choice (been there, feels like Spain/Portugal). Another option might be a special economic zone (SEZ) like Prospera (not quite South America). /cc nostr:npub1az9xj85cmxv8e9j9y80lvqp97crsqdu2fpu3srwthd99qfu9qsgstam8y8
Paraguay, anyone?
⚡️ zap thyself ⚡️
#nostr #zap #thyself #plebchain
Wondering if it’s to do with changing the wallet/lightning email address… have changed it back to the random one it gave originally, maybe that will work!
Oh no! It would’ve been the first zap as well 😅 In theory it’s a Primal wallet; any ideas why it might not work?
I’m here after winning my LFA belt because nostr:npub1wv79gfl4tn46qxs0vcr6kr73rqethvna0kchk4cw06mmdzsgrkdqmkxye0 told me this is the place for champions
Congrats!
Fine who? You think the people stealing from the national power grid left their personal contact details on each of these ASICs?
Hi DesertNomad 👋
And perhaps even harder when it’s not exclusively Bitcoin-related content…?
Hellooooo, Nostriches! 🐣
Paraguay's original & best English-language newspaper is right here on Nostr and is gradually figuring it out 🫶 🇵🇾
If you would like to learn more about all the fun things that go on in this wonderful part of the world, we've got it covered. Or at least will have, in the very near future!
Do you have any sugestions for how we can use Nostr to the full, and add value to the Nostr community? Or any questions about Paraguay we can answer for you? Let us know!
#Paraguay #Asuncion #News #Nostr #NostrPlebs #Plebs #Plebchain #Introductions #Zaps #AskNostr
This whole thing is fucking insane.
Multiculturalism was always going to end in blood.
You can’t just force different cultures to coexist. It’s never worked, in the entire HISTORY of humanity.
Read this.
And start to wake up from the liberal retard hypnosis.
https://open.substack.com/pub/frankwright/p/britain-explodes?
Actually, this isn’t true - it has been done, and it has worked. In 1814, a law was introduced in Paraguay which forced inter-racial marriage - it was illegal to marry someone of the same race. This forced those of European descent, and those of indigenous decent to “come together” (pardon the risqué pun) and ensured that the vast majority of future generations would be mixed-race, known as “Mestizo”. Today, more than 90% of Paraguayans have both European and indigenous ancestry; both indigenous Guaraní language and Spanish are spoken widely, both indigenous and European culture is lived and celebrated, and the innate acceptance of other races and cultures has led to a very large percentage of Paraguayans having a non-Paraguayan ancestor or relative, as well as a culture that actively welcomes peace-loving foreigners who come to the country. Maybe it’s time for you to experience Paraguay for yourself - but please leave your pre-conceived biases at home when you travel somewhere new ❤️ #paraguay #asuncion #multiculturalism