Thursday, December 8, 2016

How do trading pits trade metals?

The futures market for a metal is a probability graph, obtains in a one pass recursion of some master trading pit that has spawned a collection of pits; all trading digits for nuggets.  The system emits requests to ethereum to deliver some nugget of some metal to some card ID.

Can it be manipulated? Dunno,the pit bosses no doubt keep internal bit error quantized with final granularity than it allows the bets. The pit boss code says how bit error is handled, contractually.

How does bit error relate to coin units?
The easiest case is the S&L that issues coins, as the creator it can keep a fractional bit count. For an existing coin, the pit boss has two choices, allocate bits from the existing coin forcing bets to round. Or, have bettors maintain internal partial fraction account, accounts which have to remain conserved, and not tradeable..

In the case of trading metals, trader know there is bet compression because, ultimately, someone has to lift those heavy bars of gold.

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