former options mm. co-founder Hxro @RealHxroLabs and @HxroNetwork. on-chain derivatives for the win. lit, transparent, and fair markets for all. pronounced hero
Jun 10, 2022 • 13 tweets • 3 min read
1/ What is PFOF (“Pee-FOF” or Payment For Order Flow), and why is everyone in the trading world talking about it this week? Why is it important? What does it mean for the future of markets?
2/ PFOF started in the 1980s. It's when market makers (MMs) pay brokerages to route their customers’ orders to them first, instead of directly to a major exchange. Basically, MMs see your order first & decide if they want to fill it at the best price shown on exchange, or better.
Jan 19, 2021 • 10 tweets • 5 min read
THREAD: Crypto risk management keeps getting better AKA “Not losing all your fucking money” and/or optimizing risk-adjusted returns.
On the centralized side, we have vibrant and liquid futures markets with valuable interest rate mechanisms.
Not available to the US, of course.
There are “edgy” areas of the market that could soak up a lot more risk capital before losing attractiveness. More risk capital is coming, from all parts of finance… you can bet big on that.
Oct 22, 2020 • 16 tweets • 4 min read
BIG BTC TRADE!
Yesterday there was a buyer of over 5000 BTC $50,000 calls expiring December 31, 2021.
Buyer paid from $1,100 up to $1,200 per call option.
WHAT DOES THIS MEAN??
Time for a thread 👇👇👇
BTC is currently trading ~ $13,000.
What are the actual chances BTC will close above $50,000 on December 31, 2021?
A professional trader or mathematician can tell you his model’s estimation of the probability that BTC will be above $50,000 on Dec 31, 2021.
