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Request for (GOM) Short Selling |
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Hiro Pendragon
bye bye f0rums!
Join date: 22 Jan 2004
Posts: 5,905
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11-16-2004 01:13
This is the most dangerous and reckless thing GOM could possibly do.
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Hiro Pendragon
------------------ http://www.involve3d.com - Involve - Metaverse / Emerging Media Studio Visit my SL blog: http://secondtense.blogspot.com |
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Ace Cassidy
Resident Bohemian
Join date: 5 Apr 2004
Posts: 1,228
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11-16-2004 05:25
If you trade short, the most you can do is double your money. If you trade long, you can infinitely increase your holdings. Huh? If you short something, the most you can do is keep everything you sold it for. If the L$ were to fall to US$0.00 (i.e. LL goes belly up), you'd pocket the entire price. - Ace _____________________
"Free your mind, and your ass will follow" - George Clinton
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Alby Yellowknife
Sic Semper Tyrannis
Join date: 5 Jun 2004
Posts: 1,148
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11-16-2004 05:38
Huh? If you short something, the most you can do is keep everything you sold it for. If the L$ were to fall to US$0.00 (i.e. LL goes belly up), you'd pocket the entire price. - Ace You both are right, just said the same thing differently. Whatever amount you collect from executing a short is the most you can possibly receive. |
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Apotheus Silverman
I write code.
Join date: 17 Nov 2003
Posts: 416
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11-16-2004 05:48
If you short something, the most you can do is keep everything you sold it for. If the L$ were to fall to US$0.00 (i.e. LL goes belly up), you'd pocket the entire price. This possibility is only theoretical. If the price fell to nothing, along the way a lot of people would [hopefully] sell their long positions (the positions the shorts are "borrowing" from), thus forcing the market to liquidate most or all short positions. Any market that allows more shorts than longs is fundamentally broken and will lose large amounts of money. _____________________
Apotheus Silverman
Shop SL on the web - SLExchange.com Visit Abbotts Aerodrome for gobs of flying fun. |
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Alby Yellowknife
Sic Semper Tyrannis
Join date: 5 Jun 2004
Posts: 1,148
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11-16-2004 09:41
This possibility is only theoretical. If the price fell to nothing, along the way a lot of people would [hopefully] sell their long positions (the positions the shorts are "borrowing" from), thus forcing the market to liquidate most or all short positions. Any market that allows more shorts than longs is fundamentally broken and will lose large amounts of money. Very true, but you can still end up in a situtation where Longs never sold their position and shorts never covered with the price at $0.00. But your right, you can never short more than what long's hold. |
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Barbarra Blair
Short Person
Join date: 18 Apr 2004
Posts: 588
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11-16-2004 09:45
In an actual short sale, of course, you must borrow the stock or currency from somewhere in order to sell it. GOM would be crazy to make that kind of a loan. You could, of course, borrow the Linden's from someone else, were anyone nutty enough to make you a loan.
Short sellers have a motto: He who sells what isn't hizzen Buys it back or goes to Prison. In this case there are no cops to enforce the deal, so it isn't practical. |
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blaze Spinnaker
1/2 Serious
Join date: 12 Aug 2004
Posts: 5,898
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11-16-2004 15:41
Alby's point was that you'd secure the loan. Ideally, GOM would let you only have to secure it with 50% of the short position though..
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Taken from The last paragraph on pg. 16 of Cory Ondrejka's paper "Changing Realities: User Creation, Communication, and Innovation in Digital Worlds :
"User-created content takes the idea of leveraging player opinions a step further by allowing them to effectively prototype new ideas and features. Developers can then measure which new concepts most improve the products and incorporate them into the game in future patches." |
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Alby Yellowknife
Sic Semper Tyrannis
Join date: 5 Jun 2004
Posts: 1,148
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11-16-2004 20:52
Right. I wasn't suggesting unsecured short positions. Nonono, all shorters would have to put up the cash into an escrow account in the case of them getting squeeze.
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Carnildo Greenacre
Flight Engineer
Join date: 15 Nov 2003
Posts: 1,044
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11-17-2004 00:31
It's a good business to be in. IGE has some exposure to risk though .. one really has to wonder why the heck they don't follow the GOM model. They must have some secret sauce for arbitraging .. or maybe they're just worried that people wouldn't buy if it was on a market based model? IGE has an effective near-monopoly on currency trades in most other games. In any game other than SL, IGE will typically be selling currency at a minimum of twice what they paid for it. _____________________
perl -le '$_ = 1; (1 x $_) !~ /^(11+)\1+$/ && print while $_++;'
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Alby Yellowknife
Sic Semper Tyrannis
Join date: 5 Jun 2004
Posts: 1,148
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11-17-2004 05:17
IGE has an effective near-monopoly on currency trades in most other games. In any game other than SL, IGE will typically be selling currency at a minimum of twice what they paid for it. That won't last forever..... |
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Ricky Zamboni
Private citizen
Join date: 4 Jun 2004
Posts: 1,080
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11-17-2004 05:45
That won't last forever..... No, it won't.....  _____________________
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Shadow Weaver
Ancient
Join date: 13 Jan 2003
Posts: 2,808
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11-17-2004 10:05
Alby is in a new semester at colledge ...btw how goes finals?
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Everyone here is an adult. This ain't DisneyLand, and Mickey Mouse isn't going to swat you with a stick if you say "holy crapola."<Pathfinder Linden>
New Worlds new Adventures Formerly known as Jade Wolf my business name has now changed to Dragon Shadow. Im me in world for Locations of my apparrel Online Authorized Trademark Licensed Apparel http://www.cafepress.com/slvisions OR Visit The Website @ www.slvisions.com |
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Alby Yellowknife
Sic Semper Tyrannis
Join date: 5 Jun 2004
Posts: 1,148
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11-17-2004 14:07
Alby is in a new semester at colledge ...btw how goes finals? Cambridge is coming along great Shadow. Word is that I'm in line for Newton's old chair of Lucasian Professor of Mathematics once Stephen Hawking steps down. LOL  Now back to your Peace, Love, and Rainbows Shadow while we work on the monetary future of the world. ehehehhe |
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Shadow Weaver
Ancient
Join date: 13 Jan 2003
Posts: 2,808
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11-18-2004 10:10
Realy, well give my reguards to Old Man Williams there I think he is still teaching Psycho analysis there.
And on that Chair thing...<<<breaks out in trumoiltious laughter. _____________________
Everyone here is an adult. This ain't DisneyLand, and Mickey Mouse isn't going to swat you with a stick if you say "holy crapola."<Pathfinder Linden>
New Worlds new Adventures Formerly known as Jade Wolf my business name has now changed to Dragon Shadow. Im me in world for Locations of my apparrel Online Authorized Trademark Licensed Apparel http://www.cafepress.com/slvisions OR Visit The Website @ www.slvisions.com |
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Ferran Brodsky
Better living through rum
Join date: 3 Feb 2004
Posts: 821
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11-18-2004 16:37
Well here it is folks... GOM short selling
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