Vaibhav Kadikar
Why does Warren Buffet think that "leverage is a weapon of mass destruction in the economic sense"?
Did someone say Lehman Brothers? Or are you too young to remember the 2008 financial meltdown?
If you didn't get a chance to read the primer on how the centralized derivatives issuers make their money, please read here. If you already read it, you already formed the base for what I am about to share next with you.
Vaibhav Kadikar
The traditional financial systems work on trust
And its not as honest and secure as you may think and expect.
Traditional, classical or most of the current financial systems are setup on trust. Trust that organisations that are regulated will follow regulatory guidance on their processes. Trust that when you engage with them or buy a financial product from them, it will serve the purpose it is intended to.
Vaibhav Kadikar
Can the two be really bridged? Do they need to be bridged?
A dollar today is worth more than a dollar tomorrow, which is worth more than a dollar a week from now. That is the simple takeaway from Black Scholes formula or what is often referred to as the "Time value of money" algorithm. It is used by each and every financial institute and entity for a multitude of purposes. This is single most important formula in a financier's armoury or a mergers and acquisition boutiques valuation methodologies.
Vaibhav Kadikar
Before we take a deeper dive into how or from where the money flows for financial derivatives, it may be useful to read up on what the traditional financial derivatives are, and how the multiparty derivatives can reshape the legacy structures.
In this post, we will talk about where the money comes from for the derivatives markets and why it does not need to remain how it currently exists.
Vaibhav Kadikar
Less risks could result in better returns.
Imagine you are placing a bet on a sporting event. There are numerous possible outcomes and the outcomes themselves are highly volatile. Now imagine that instead of using dollars, pounds, or euros you placed a bet using the betting receipts from another bet which in itself in an unknown outcome. In this situation neither you or the house you are placing bets with would know the actual measurable value in stable terms.
Vaibhav Kadikar
Financial derivatives by definition, and in classical terms, are contracts between two parties wherein one-party benefits at the expense of the other when predicting the future value of a financial asset. A financial asset can be a commodity (e.g. Gold, Oil), a stock (e.g. Apple, Amazon), an index (e.g. NASDAQ, FTSE 100), a foreign exchange (forex) pair (e.g. USDGBP, EURCHF), cryptocurrency (e.g. Bitcoin, Ether), etc.
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Vaibhav Kadikar
Is Decentralised Peer to Peer Derivatives Trading the Future?
Are you a derivatives trader and wondered if the $1200 trillion per annum market could be different? Have you ever wondered why traders lose money on 75%+ trades? Do you sense that the balance of power always favours the centralized derivatives issuers? You may find some of the answers here.
Vaibhav Kadikar
Predicting. An innate human trait. Predictions are the basis for some of our even most trivial actions. In fact, it is time we move on from being called Homo Sapiens to Homo Predicens: the predicting man!
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Vaibhav Kadikar
Leveraging an investment position is standard practice in the ring-fenced arena of derivatives trading. Under the elitist notion that retail investors do not have the wherewithal to handle leverage, this potentially vast investor segment has been excluded from substantial market opportunities, be it as a choice of the retail participant to not get exposed to unquantifiable risks or as a regulatory preventative measure disallowing retail participation.
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CloseCross
As I return from moderating a panel discussion on the topic of STO regulation and the future of fundraising, I have taken the opportunity to reflect on my experience as a moderator, not only at Delta Summit 2019 but on other occasions too.
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CloseCross
CloseCross is a decentralized market prediction platform that is aiming to democratize financial markets to the public and allow financial inclusion to arise. CloseCross is creating a paradigm shift for the exchange traded derivatives market and giving people a valid, fair and transparent alternative to the current derivatives setup.
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Vaibhav Kadikar
How can investors benefit from the decentralization of investment platforms.
If you have a question about a specific topic, who are you best to ask: a recognized expert or John/ Jane Q. Public?
CloseCross
How can we imagine a trading system that truly leverages the potential of the many, not just the few?
Just over a decade ago, the idea of a decentralized multi-party predictions trading platform was just a vision for CloseCross' Founder and CEO, Vaibhav Kadikar. Now, using blockchain technology, CloseCross has turned that dream into a reality.
CloseCross
Current prediction markets withhold information for the benefit of financial institutions, but transparent multi-party trading could change all of that.
Here's a question: if you were involved in a trade, and you knew that the other party to the trade was in possession of information that gave them a significant advantage but was completely off-limits to you, would you continue?
CloseCross
A brief introduction to a very important topic
Derivatives - what are they exactly? Many people are familiar with the term, even if they don't quite grasp its meaning.
Ian Simpson
Amnis Ventures backs UK fintech CloseCross to overhaul derivatives trading market.
London, UK - January 30, 2019 - CloseCross, a multi-party, decentralised derivatives trading platform in beta, has opened its investment round with $3 million USD backed by Amnis Ventures, a privately owned venture fund based in Houston, Texas.
Vaibhav Kadikar
![CloseCross Innovations: Roadmap and roll-out [Part 2]](images/CloseCross-Innovations.png)
CloseCross is the world's first truly decentralised derivatives platform driving democratic participation. By introducing simple 3-click-trading, eliminating unquantified risks, and making trading 90% cheaper, CloseCross gives everyone the opportunity to participate in the $1200 trillion financial derivatives market - without needing to be a financial genius with access to tons of money. Decentralized. Democratized. Transparent.
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Vaibhav Kadikar
![CloseCross Innovations: Virtual Prediction Floors<sup>®</sup> and beyond [Part 1]](images/CloseCross-Innovations-1.png)
CloseCross is the world's first truly decentralised derivatives platform driving democratic participation. By introducing simple 3-click-trading, eliminating unquantified risks, and making trading 90% cheaper, CloseCross gives everyone the opportunity to participate in the $1200 trillion financial derivatives market - without needing to be a financial genius with access to tons of money. Decentralized. Democratized. Transparent.
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Ian Simpson
Any activity that positively impacts the physical, social, mental or financial well-being of an individual must as a principle be democratic and allow everyone to participate without any obstacles.
Read More (9 min read)