Archive for August 10, 2006

Hedge Street quickly

So, I am sorry for not blogging more, but I’ve been busy betting on commodities and currencies at Hedge Street. Hedge is another prediction market like intrade, but specializing in crude oil, copper, usd, euros, yen, gbp, and other volatile markets. As it’s name portends, it’s all about hedging your bets. The site design is amazing and is for the most part rather intuitive plus a ticker is built into the listing hence you don’t necessarily need to refresh yahoo finance every 6 seconds to get a decent qoute, however Hedge Street lags on my computer, perhaps it’s do to using linux or being in Taiwan, but I frequently miss good rates becuase of the lag between sell/buy and also that you have to click on a different section of the site to get to orders to change your order. Regardless, Hedge Street is definitely more geared towards economic numbers such as mortage rates and the housing bubble and not towards sports. It’s fairly liquid, there seem to be two bots trading on most auctions at all times, but it doesn’t have the hyper-kinetic frenzy of intrade. It might be do to the fact that I actually know what I’m doing this time around, but I’ve managed to hedge a few bets, cut some losses (except for the 6.40 I got on USD vs Yen at 115.50 right now which will probably be a loss), and generally keep a little bit more above water. Much has been made recently of the low volumes in trades on prediction markets outside of politics and sports, Hedge Street falls far outside of the usual betting fare, but it seems to be growing and volumes when it comes to the 100 USD barrel of oils auctions seem to be pretty popular as is the currency markets when the u.s. market is in session (it sucks that you can’t bet on usd vs yen when the japanese market is open).My only real gripe is that it takes time for things to settle. A bet on gold at 1:30 p.m. isn’t settled till the gold market closes for the day instead of minutes after the betting closes on hedge street. Hence if you open an account with little cash (100 usd is required) it can take days for things to settle. Fees are rather light too at 10 cents a trade.

Tags: prediction_markets, economics

August 10, 2006 at 7:17 pm Leave a comment

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August 10, 2006 at 3:19 pm Leave a comment


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