http://forexmagnates.com/and-the-first-forex-broker-to-offer-bitcoin-trading-is/
What does this imply for the price?
How does an institution offer leveraged Bitcoin trading through another exchange?
I know bitcoinica did this and failed. Hoping someone can explain this.
Thanks
What does this imply for the price?
How does an institution offer leveraged Bitcoin trading through another exchange?
I know bitcoinica did this and failed. Hoping someone can explain this.
Thanks
They aren't actually interacting with MTGox at all. They are just using the MTGox price as a reference for settlement of CFD (Contract-for-Difference) contracts that they are offering.
So how do they hedge against their users leveraging in the opposite direction that they are on?
If a user shorts bitcoins on their platform are bitcoins actually borrowed or sold? This is what I'm unsure about.