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#1 Single trader manipulated Intrade political stocks.

Posted: Fri Oct 17, 2008 9:06 pm
by SirNitram
Link

[quote]An internal investigation by the popular online market Intrade has revealed that an investor’s purchases prompted “unusualâ€

#2

Posted: Fri Oct 17, 2008 10:06 pm
by Mayabird
[We need that confused WTF smiley, or at least something like looks totally perplexed.]

How in the name of Susie is this "futures trading" supposed to work? I thought futures trading involved, you know, actual goods and services, like wheat. This sounds like people making bets on random crap, like horse racing but without the excitement of horses racing. How is this a "market"?

#3

Posted: Sat Oct 18, 2008 12:20 am
by SirNitram
In this case, it's a form of legal gambling. Oddmakers all over allow bets on all manner of things(A Vegas one did a magazine interview once, and included his odds. It included one for Elvis on a ship, with a one-to-a-million payout).

Futures in the commidities markets are quite simple: You buy a contract saying on Date X, you will own Amount Y of Commodity Z. Oil's had a very shaky time on this market, especially since the gas companies buy in futures so they have a steady flow ahead.

Side-note: Normal oddmakers in Ireland have closed up, paying out on an Obama win. Better to just get the losses on the books now.