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Naked Shorting

Unless I'm missing something, PredictIt doesn't allow naked shorting or shorting of any kind.


Allowing shorting will close the huge spreads in some of these markets and provide more liquidity.


Just a recommendation


1 person likes this idea

Thanks for the feedback. Please read the comments on Linked Contract Pricing that can be accessed from the "Markets" page at the site.

Buying No positions is the same as shorting.

 

Yea but, if I am the first to put out an offer to buy on a new contract, who can sell them to me? I must be missing something...
You make an offer to buy a Yes at .40.  I see this offer as a No for sale at .60. I spend 60 cents to buy the No.  Your offer to buy a yes goes through.  You now own 1 Yes share that you bought at .40 and I own one No share that I bought at .60.  If Yes comes true, you win .60 from me and I lose 60 cents.  If No comes true, I win 40 cents and you lose 40 cents.

 


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I can't find what Dave, in the first response above, calls 'comments on Linked Contract Pricing that can be accessed from the "Markets" page'. Maybe they have been moved? Please could somebody post a link or clearer instructions how to find them?

 

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