๐๐๐ข๐ญ๐ข๐จ๐ง ๐๐ ๐ฌ If you know it is going to rain, you move the party. You do not insure it.
Which means the most valuable forecasts are the ones with no natural hedging demand behind them.
A short letter this week, and one big idea.
15 speakers confirmed last week. 91 total. Strongest week yet ๐ฌ
Among them: the Co-Chief of SDNY's Securities and Commodities Fraud Task Force, and the Morgan Stanley analyst who covers DraftKings.
Edition 04 of The Prediction Markets Letter.
A market maker prices risk and provides liquidity. Owning the customer relationship is not part of that job.
So who is left on the other side of the trade?
Edition 03 ๐ฌ six things we heard last week.
"We see a lot of interest from institutions. The question is whether it is actionable."
One of the largest market makers in the world, trading $10bn to $15bn a day.
That gap is the whole story right now. 33 conversations, six things we heard.