|
|
A marketplace for everything
by serengeti on Nov 01, 2007 - 08:36 AM read 306 times |
It's fascinating to see how far markets are reaching and how much everything is de facto becoming a tradeable item.
Are non financial markets converging with financial markets? Think beyond Betfair here. A VC friend of mine recently looked at a digital options exchange for P2P (allowing you to take a view on "anything") and one of his key concerns in not pursuing the deal was that the API's would be used by pro's to create synthetic hedges and that pro's might play related underlyings in the real market to make money on the P2P exchange at the barrier.
Where are hedge funds going next ? The explosion of hedges has reduced the profits in many of their core trading strategies to slim pickings. Are they going to arbitrage the price of goods on eBay vs. DH Gate using automated trading tools ?
There are very few segments where the benefits of dynamic and efficient markets cannot be applied. Besides the obvious ones like betting, think through gaming avatars, leads marketing, demand aggregation plays and, why not, ideas.
Are non financial markets converging with financial markets? Think beyond Betfair here. A VC friend of mine recently looked at a digital options exchange for P2P (allowing you to take a view on "anything") and one of his key concerns in not pursuing the deal was that the API's would be used by pro's to create synthetic hedges and that pro's might play related underlyings in the real market to make money on the P2P exchange at the barrier.
Where are hedge funds going next ? The explosion of hedges has reduced the profits in many of their core trading strategies to slim pickings. Are they going to arbitrage the price of goods on eBay vs. DH Gate using automated trading tools ?
There are very few segments where the benefits of dynamic and efficient markets cannot be applied. Besides the obvious ones like betting, think through gaming avatars, leads marketing, demand aggregation plays and, why not, ideas.


