Friday, March 10, 2006

New Market website

There's a new website that creates markets and sells shares (a concept that is becoming extraordinarily popular). The site, Inkling, is very nicely laid out and fairly simple. The only problems that I see is that there market maker mechanism does not rely on an explicit bid/ask price (though one is implied). Instead it shifts the price by a small amount (which varies between markets) depending on the amount purchase or sold. This works fine now but seems like it will create a bit of a problem when the site is more active and prices are fluctuating as you hit the button... I'd love to know how they plan on handling that issue. It also limits trading large blocks but I think this might actually be a good thing as it keeps large money investors from creating aberrations in the markets.

Seems like a good website... the two markets I'm involved in are:

Price of Oil at the end of March (hovering right around 60-62 per barrel), and
Seats that democrats will hold after the midterm elections (hovering around 210-212 per share)

1 Comments:

At 7:52 AM, Anonymous Anonymous said...

Hi Jeff,

We'd love to hear your thoughts on www.crowdiq.com. We're trying to build out a community based Prediction Markets platform and starting the process of community building.

+ The CrowdIQ Team

 

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