Interesting read. I wonder if pricing of these contracts is also a determining factor in the success of these markets. For example in sports betting, odds reflect bookies hedging their bets and not actual probabilities which if they did reflect the latter would potentially blow them up.
Interesting read. I wonder if pricing of these contracts is also a determining factor in the success of these markets. For example in sports betting, odds reflect bookies hedging their bets and not actual probabilities which if they did reflect the latter would potentially blow them up.
Yes, I think establishing hedging demand is key.