HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
Actually all of the....
profit comes from other traders. By definition, every single contract you hold has to be held by another trader in the equal, but opposite quantity.
(HSX doesn't have this problem - when someone wants to long/short a moviestock, the artificial broker generates a fake sale. Hence why overtime everyone sees their port grow.)
So in your example above, the general effect is as follows:
you buy at $100, close out (sell) at $200 - your interest is over. You profit by $100 because that sum effectively shifts from the guy you originally sold to you (@$100) - he is now stuck with a contract that has devalued by $100 (so in this example its worth 0$).
In your example, if the stock sold @$200 continues to increase in value to $300, the guy you sold to @$200 sees that value increase, either from the guy who originally sold to you @$100 or from whoever he has closed out to his position to.
Look at it this way:
It is like a poker table - CX starts, 10 players join each taking $1000 worth of positions. Forgetting for one moment, payment of commissions, there is $10,000 'in play' and unless new people join or existing people put more value in, there will always bee $10,000 in play which is constantly shifting between the 10 traders. That is why the plan is to grow the platform, increase number of tradser and increase liquidity.
curious about cantor when it goes live: after the 4 weeks, will it still cash out? and where does that money come from? {nm} Mar 10, 12:34
Not sure what you mean, but you can email customerservice@cantorexchange.com with any questions. {nm} Mar 10, 12:56
will do, but i hope you dont mind me discussing it here for all us future players gaining some knowledge. {nm} Mar 10, 13:14
still cashes out. people deposit money.. its not longer fantasy land. {nm} Mar 10, 13:02
on one level, it comes from the traders who held the opposite position {nm} Mar 10, 13:49
HSX is not a zero sum game - the system adds money to the game. Mar 10, 17:41
did you see the thread on the players board? some players answered similar questions i had > Mar 10, 14:50
thanks. that kinda answered a bit of the question, but still left a giant gaping hole in where the money comes from... Mar 10, 15:35
who cares. as long as i get paid value, they could steal it from little old ladies pensions as far as i'm concerned {nm} Mar 10, 15:46
as usual, youre always so helpful mpix. {nm} Mar 10, 15:56
Actually all of the.... Mar 10, 17:33
The only extra $100 is see is because you used different purchase prices in your examples. Mar 10, 17:34