Jack_steel 🕷 @Jack_st33l - Twitter Profile

𝐈𝐦𝐚𝐠𝐢𝐧𝐞 𝐦𝐚𝐤𝐢𝐧𝐠 𝐚 𝐝𝐞𝐚𝐥 𝐰𝐡𝐞𝐫𝐞 𝐧𝐞𝐢𝐭𝐡𝐞𝐫 𝐩𝐞𝐫𝐬𝐨𝐧 𝐚𝐜𝐭𝐮𝐚𝐥��𝐲 𝐰𝐚𝐧𝐭𝐬 𝐭𝐡𝐞 𝐬𝐚𝐦𝐞 𝐭𝐡𝐢𝐧𝐠 𝐭𝐨 𝐡𝐚𝐩𝐩𝐞𝐧. Take this for example. Mr. Kenny is a trader with ₦100 million worth of a stock sitting in his inventory. He doesn't want to sell. He believes demand will remain strong, and he wants to keep holding the asset. But knowing how crypto works, there's one thing he can't ignore: 𝐓𝐡𝐚𝐭 ₦𝟏𝟎𝟎 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐜𝐚𝐧 𝐛𝐞𝐜𝐨𝐦𝐞 ₦𝟕𝟎 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐨𝐫 𝐥𝐞𝐬𝐬 𝐯𝐞𝐫𝐲 𝐪𝐮𝐢𝐜𝐤𝐥𝐲 𝐢𝐟 𝐭𝐡𝐞 𝐬𝐭𝐨𝐜𝐤 𝐭𝐚𝐤𝐞𝐬 𝐚 𝐬𝐞𝐫𝐢𝐨𝐮𝐬 𝐡𝐢𝐭. And Kenny's problem isn't that he wants to sell. He doesn't. His problem is that he wants to keep the asset without being completely exposed to a major fall. Now meet Trader 2, Mr. John. Mr. John has capital. And unlike Kenny, John is willing to take on some of that downside risk. Why? Because if the stock doesn't suffer that serious fall, John gets paid for taking the risk. So their interests are opposite: 𝐊𝐞𝐧𝐧𝐲: “I want to keep holding the stock, but I don't want to absorb the full damage if it crashes.” 𝐉𝐨𝐡𝐧: “I'm willing to take on that risk, but I want to earn something in return.” Now, how do we give both of them what they want? There is a financial product designed to package this kind of trade into a set of rules, dates and payments. It's called @notesystems But before we get into @notesystems , let's slow down and understand the actual deal Kenny and John are making. Because once that clicks, the rest becomes much easier to understand. $NOTE:A thread🔻🧵