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91 sats \ 2 replies \ @Undisciplined 20h \ parent \ on: We've not fogotten about ~Stacker_Sports Stacker_Sports
The main reason I don't often buy No shares, is exactly what you said, and I usually do so only when arbitraging a Yes with better odds from another site (or just to irritate @grayruby).
I guess I was just thinking there might be a way to have elements of both worlds in play, where each outcome has it's own liquidity that effects the odds rebalancing.
Ha ha!
Valid point: It's ok to buy NO shares to irritate @grayruby. LMSR allows it ;)
I guess I was just thinking there might be a way to have elements of both worlds in play, where each outcome has it's own liquidity that effects the odds rebalancing.
Yes there is a way to do it. It can be achieved by creating Single/Binary YES/NO markets for each outcome/team. And group together in the UI to disguise it as Multi-option market. That way every option/team->market has its own isolated b and N.
However this approach is very liquidity intensive( much more liquidity will be needed to create such markets).
This type of markets will only work if there is a high volume and high frequency trading, where trader's are waiting like a hawk for arbitrage opportunity between the individual teams/option market. High frequency trading automatically tends to fix the odds variance between the teams market.
Bottom line, we are not there yet, once Predyx reaches such high volume and high frequency trading levels, we will for sure start launching isolated markets like explained above.
Hope this helps.
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I feel like there should be a way to internalize those arbitrage opportunities, rather than wait for 3rd parties to do it.
For instance, let's suppose for simplicity that about half of the liquidity is on the 49ers and the rest is spread evenly across all the other teams. If I buy enough shares that the 49ers would move 2% in a single market, they would now only move 1% and every other team would move proportionally to rebalance the cumulative odds.
I'm thinking about it like a physical balancing act, where liquidity is analogous to mass.
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