Exactly.
John Delaney said that that firm has been hedging on InTrade —a normal and beneficial activity on the other (larger and more liquid) financial markets.
InTrade is not liquid enough to weather (quickly enough) the impact made by the hedging activities, at this time, but will in the future, if growth continues.
Manipulation is bad.
Hedging is good.
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As a way to thank Zubin Jelveh for his admirable coverage of the prediction markets, please do subscribe to his economics blog, Odd Numbers.
- Odd Numbers @ Portfolio — category: “prediction markets“
- Put that URL in your feed reader:
- http://feeds.portfolio.com/portfolio/oddnumbers
- Mister Zubin Jelveh, thank you.
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