> From: "James M. Ray" <[EMAIL PROTECTED]> > Date: Mon, 23 Jun 2003 17:20:00 -0400 > To: "e-gold Discussion" <[EMAIL PROTECTED]> > Subject: [e-gold-list] Re: "Free" storage (was Re: gold ETF and GDC) > > At 10:22 PM +0300 6/23/03, Danny Van den Berghe wrote: > ... >> Of course, and there are also things you can do with the ETF that you can't >> do with e-gold. >> For example you can short the ETF if you think gold price will drop. > > I'm pretty-sure this is possible with Xodds.com, too, using e-gold. I > haven't logged into my Xodds account in a while, actually! :)
You can't really short using Xodds. You can place wagers on market moves though. For example, you could bet that the price of gold would go down and win $500. Cost of placing the bet is $400. If you are right, you win $100, if wrong you lose $400. For a real short position you would need the position to make $1 for every $1 drop in the price of gold, and it would have to move in a 1:1 ratio. >From X-odds perspective it's like betting on red or black on the roulette wheel. But the house needs a bit of an edge to make money, which is why 0 and 00 are on the wheel. And that's why X-odds has lopsided payouts for market moves. Someone could set up a futures exchange using e-gold. People could loan $1000 of e-gold out to the shorts, who would take possession for let's say a 1 month contract, then at the end of the month the shorts pay back the e-gold. If the price is up, they lose, if it is down, they win. This could be automated with software to automatically match buyer/sellers of contracts, and a central authority would be established, the clearing house, that would hold the gold to ensure performance of the contract, including holding the funds for margin calls. - John --- http://cambist.net --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
