alt Hacker NewsEven if a cut isn't taken and there aren't other inefficiencies, any money tied up in long-term predictions is earning 0% instead of whatever the current risk-free rate of return is.
Replies
xrisk • yesterday at 10:51 PM
Assuming that the prediction market is perfectly priced right? How accurate is that assumption, or are you counting that as an “inefficiency”?
bradleyjg • today at 12:35 AM
IBKR relentlessly advertises on the radio, so I’m aware that on their scheme you earn an interest like incentive coupon for every day you hold open the position.
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Earning less than the risk free rate is a 'cut being taken'.