Chapter
Trading firm linked to exchange: the conflict of interest.
06:33 - 11:34 (05:01)
An individual investor can borrow money from the same exchange so that they can invest more money into the market which can potentially create greater losses as well as greater returns. A trading firm named Alameda Research has participated in high leverage trading on the FTX platform, which they have invested in, and one of the founders has caused controversy by making insensitive jokes and distributing condoms with the FTX logo at a crypto conference.
Clips
The close relationship between trading firms and exchanges can lead to potential conflicts of interest as they try to make money at the expense of other customers.
06:33 - 11:34 (05:01)
Summary
The close relationship between trading firms and exchanges can lead to potential conflicts of interest as they try to make money at the expense of other customers. High leverage trading and risky investments may also cause greater losses, as seen with Alameda Research's involvement in FTX trading platform.