Season 3

Episode 20

Available Now

Institutional Trading

Tue Mar 28 2023





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Show Notes

Institutional Trading

Theo has a background in mathematics, which led him to the financial markets. He gained experience working with hedge funds and derivatives trading. With his solid financial knowledge and understanding of institutional weight, he and his co-founders are creating the first regulated crypto options exchange for institutions in Europe

00:00 to 03:29 - Who’s Theodore

03:29 to 07:43 - Derivatives in Finance

07:43 to 12:08 - Options Derivatives

12:08 to 15:14 - Trading in Crypto

15:14 to 16:34 - Spot Trading

16:34 to 19:35 - Market Making

19:35 to 21:49 - Market Manipulation

21:49 to 27:25 - Regulation

27:25 to 34:47 - D2X

34:47 to 38:13 - Automation

38:13 to 39:50 - Protocols Preference

39:50 to 41:18 - Release Date

41:18 to 44:45 - Room for Retail ?

44:45 to 47:20 - Different Regulations

47:20 to 51:06 - Rounding Off


Volatility Trading: Volatility trading involves buying and selling financial instruments based on expected market volatility. It is used to manage risk and profit from market movements. Traders may use options, futures, or other derivatives to capitalize on predicted price swings.

Derivative Markets: The derivatives market is a financial market where contracts are traded that derive their value from an underlying asset or group of assets, such as stocks, bonds, commodities, or currencies. These contracts allow traders to speculate on the future price movements of the underlying asset, hedge against potential losses, or gain exposure to the asset without owning it directly.

Option Derivatives: Option derivatives are financial instruments that give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and time. They are used for hedging or speculation in the financial markets.

Future Derivatives: Futures derivatives are financial contracts that obligate the buyer to purchase an underlying asset at a predetermined price and date in the future, while the seller is obligated to deliver that asset at the specified price and date. Futures are often used as a risk management tool by investors to hedge against potential price fluctuations.

Longing: Longing is a term used in trading and investing, specifically in the context of buying an asset with the expectation that its value will increase over time. It is the opposite of shorting, which involves selling an asset with the expectation that its value will decrease.

Shorting: Shorting refers to a trading strategy where an investor sells an asset they do not own, with the intention of buying it back later at a lower price. The investor profits from the difference in the selling and buying price. It is often used to speculate on a potential decline in the value of an asset.

Collateral: Collateral refers to an asset or property that is pledged by a borrower to a lender as security for a loan or credit. It acts as a form of guarantee that the lender will be able to recover their funds in the event of a default. Collateral can take many forms, including cash, stocks, bonds, real estate, or other valuable assets.

Retail Investment: Retail investment refers to individuals investing their own money in the financial markets, rather than on behalf of an organization or institution. Retail investors typically invest in stocks, bonds, mutual funds, exchange-traded funds (ETFs), and other financial products available through brokerage firms and online trading platforms.

Market Making: Market making is the process of providing liquidity to a financial market by continuously buying and selling securities or other assets to ensure there are always willing buyers and sellers. This helps to facilitate trading and provides a more efficient market for investors.

Gas: In blockchain, gas refers to the fee required to perform a transaction or execute a smart contract on the network. It is usually paid in cryptocurrency and is used to incentivize miners to process the transaction or contract. The higher the gas price, the faster the transaction is processed.

L2: Layer 2 refers to a secondary framework built on top of an existing blockchain to increase its transaction capacity, improve scalability, and reduce costs. It allows for faster and cheaper transactions by processing them off the main chain while still retaining the security benefits of the underlying blockchain.

Ethereum: Ethereum is a decentralized, open-source blockchain network that allows developers to build decentralized applications and smart contracts. It uses a cryptocurrency called Ether (ETH) to facilitate transactions and incentivize network participants.

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