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KYC is irrelevant to credit risk because they have collateral worth twice the value of the loan, and liquidate it to cover any missed payment or whenever the collateral value declines to 1.25x the value of the loan, or whatever. The liquidation thresholds of various loans will be distributed...

It takes a millisecond to liquidate the collateral. Who cares if it moves 6x over a couple of months. Fucking houses in San Francisco move 2x over a couple of years and take months to liquidate. Fucking uncollateralized personal loans can be found under 12%. It's just the institutional...

"This proposed regulation would, we think, require financial institutions like Coinbase to verify the recipient/owner of the self-hosted wallet, collecting identifying information on that party, before a withdrawal could be sent to that self-hosted wallet." It's impossible for the exchange or...

The lender in my example is basically earning 12% on their USD with lower risk than a San Francisco mortgage yielding 3% (because the collateral is so much more liquid & 2x the loan value). Very inefficient market.

Since I got assigned instead of actually closing the option position, the P&L on the option itself should be undefined and the P&L on the stock should use a cost basis of the strike price +/- the option premium.

This would be contrary to the IRS rules, where the assignment is not a taxable event, but the premium received/paid on the options is rolled into the cost basis of the stock.

so it's basically pretending I closed the option position for $0?

After I get assigned on options, TWS displays the cost basis (avg price column) as just the strike price, but it should be the strike price plus the cost basis of the options.

Maybe I can take out a USD loan against crypto, and deposit the proceeds into IB. That'd be almost the same thing except I'd be paying 4% interest on the USD and forgoing 4% interest on twice as much BTC, so the total cost would be 12% of the USD lol. It can't stay that high for long...

They don't have portfolio margin so it kinda defeats the purpose. I'm constantly pushing the envelope of IBKR's portfolio margin as it is.

Please let me custody bitcoin with IBKR so that I can deposit additional collateral without incurring capital gains taxes. Most of my net worth outside of IBKR is in bitcoin. Various investment banks have started providing institutional bitcoin custody. When is it going to be possible to...

Bitcoin market cap is still only 2.85% of gold market cap. It's early days. There's still 10x-100x upside.

Things that cost next to nothing to store should never have 9% contango in futures.

Like an oil storage trade except it pays you a lot more and costs you a lot less.

Blockfi and others are offering interest rates over 8% for bitcoin, and paying for it via lending out that bitcoin at an even higher rate. The market is just being wildly inefficient here, with a 17% gap between spot lending and contango rates. The market is wildly inefficient here. Anyone...

there's no rational reason for this much futures contango to coexist with 8% interest on lending spot bitcoin. Who's gonna pay 8% to borrow bitcoin to short it when they could instead get paid 8% to short the futures?

This is a long shot, but I would REALLY appreciate it if some broker would let me hold bitcoin in my account and use it as collateral against short bitcoin futures, to arb the contango (over 9% APY risk free)

I did that and it doesn't update the bid IV. The underlying can stay exactly flat and when new bids come in on the option chain it doesn't update IV automatically. I have to load a different tab of the option chain, and then come back to the original tab, to make it actually refresh the IV.

If you're looking at the option chain and the bid/ask changes, the IV for the bid/ask doesn't get immediately updated. It should, because it's a simple formula that can be executed on the client side.

What's the hold-up? The OCC's PMC says the HYLN warrants have been in the right class since Monday. The problem is on IBKR's end. This is costing me a lot of money in missed opportunities.