I enjoyed this conversation between crypto folks and founder of a retail focused options brokerage.
overcast.fm/+Rt6qS0-Fo
Similar jobs to be done (active trading as an entertainment product); good insight on how traditional brokerages with risk appetite would think of fees.
overcast.fm/+Rt6qS0-Fo
Similar jobs to be done (active trading as an entertainment product); good insight on how traditional brokerages with risk appetite would think of fees.
Also fun to hear people from very different worlds allude to very foundational views that they treat as axiomatic but that their counterparties don’t understand at that level.
Most prominently, when asked about the risks of crypto, brokerage said “What do I care? Cash product.”
Most prominently, when asked about the risks of crypto, brokerage said “What do I care? Cash product.”
Meaning: because they do not offer leverage on crypto, they do not have to do the risk management they have to do on options trades, leveraged stock positions, futures, or shorting stocks.
They never take credit risk regardless of market conditions or user behavior.
They never take credit risk regardless of market conditions or user behavior.
Another great part of discussion was when he discussed cutting prices on crypto trades.
“So you’re undercutting Coinbase?”
Paraphrase: “No I don’t care about crypto margin. I can give it away to get new active users and keep AUM on my platform.”
“So you’re undercutting Coinbase?”
Paraphrase: “No I don’t care about crypto margin. I can give it away to get new active users and keep AUM on my platform.”
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