You can gamble on whether a stock price will rise or fall. When going to war, stock prices for war companies rise because they are expected to get a lot of business, but if that call to war is suddenly canceled, then the stock price for that company decreases.
If he made a losing bet, one of two things happened:
The value of the stock was going to drop way below the value it started at, so he would earn a large payout on that gamble.
He was funneling large amounts of money to other insider traders.
Thank you. I didn’t know that was possible. How do you do such a gamble, practically ? Is it something that banks offer, or something you can do from a smartphone app ?
You can gamble on whether a stock price will rise or fall. When going to war, stock prices for war companies rise because they are expected to get a lot of business, but if that call to war is suddenly canceled, then the stock price for that company decreases.
If he made a losing bet, one of two things happened:
The value of the stock was going to drop way below the value it started at, so he would earn a large payout on that gamble.
He was funneling large amounts of money to other insider traders.
Thank you. I didn’t know that was possible. How do you do such a gamble, practically ? Is it something that banks offer, or something you can do from a smartphone app ?
Additionally, how does #2 work ?
You can get a brokerage app, exactly what app and how they work are dependent on your region.