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Think Bit Coin Is Just a Bubble? 5 Best Methods to Short It

The CEO of J.P. Morgan this week predicted Bit coin that a "fraud" and "worse compared to tulip bulbs" If you agree, then it could be tempting to gamble from the digital money. Sure, the purchase price has had a beating recently however it's up 400 percent from January (,850 at the time of Thursday) --offering a chance for Bit coin bears.
So just how can you short Bit coin? It isn't easy because of deficiency of lending options (in accordance with other resources) and because a few tactics are on a specialist trader. Nevertheless, here are just five approaches for bears to gamble against the entire world's most common digital money.
Inch) Buy it around perimeter market it
Trading programs such as Coin base-owned GDAX let you buy online margin. While gross profit purchases normally entail adding leverage to proceed long within an advantage, in addition, it is feasible to go short by purchasing bit coins on perimeter, and shutting out the career after on. In the event the purchase price tag on bit coins drops in that moment, you're benefit from the commerce.
You will find a couple of caveats. It's that GDAX requires U.S. occupants to get at least 5 million should they would like to exchange on margin. (San Francisco-based rival Kraken does not appear to possess this limitation). The alternative is that clients can simply exit margin places available for a rather brief amount of time--27 days while in the instance of GDAX--that means individuals gambling on a fall in Bit coin desire it to fall in short sequence, or they'll need to pay the purchase price growth.
Two) Short stocks of this Bit-coin Investment Trust
The SEC this season refused a program by the Winklevoss twins to establish a Bit coin ETF. The stocks of the ETF will have exchanged to a significant market, also let average traders utilize their broker account to short them at precisely the exact same way as a average inventory exchange.
The SEC is reconsidering your choice however, at the meantime, the only real stock-like alternate could be your Bit Coin Investment Trust. As its name implies this is just a hope which holds Bit coin and enables people exchange its shares under the ticker GBTC.
Once more, you'll find grabs. It's that GBTC isn't permitted trade on major exchanges, therefore as an alternative it's recorded on OTC Markets (aka the "pink sheets") alongside other misfit toys of this auctions globe. Enormous brokerages such as TD Ameritrade do enable traders purchase OTC-listed stocks however, perhaps not short them, helping to make it more challenging to gamble against GBTC. At length, the purchase price tag on Bit Coin Trust stocks have gotten untethered into the amount tag on Bit coin (it's ostensibly broken within an investment vehicle) therefore a brief bet isn't quite a bet on Bit coin itself.
3) Buy derivatives on LedgerX (if they arrive)
Experienced investors might want to wade in the entire world of options and other derivatives like a means to become more bearish on Bit coin. Specifically, they can get a "put option" to market Bit coin during its present flat-rate cost. In the event the purchase price tag on Bit coin starts falling, the possibility increases in value along with also its owner can pocket an advantage.
These derivative contracts aren't available yet; however, they should be so on. Back in July the Commodity Futures Trading Commission approved a bid by a company named Ledger X to start a clearing house to get crypto currency places, calls, swaps and a wide range of additional exotic contracts. Ledger X is predicted to be available for business within the not too distant future.
(Update: There is also Hong Kong-based Bitmex, and it is a long-time purveyor of all bitcoin-related derivatives. 1 catch: all of trades, in addition to losses and profits, are ran in Bit coin--meaning you have to purchase Bit coin until you are able to view it).
4) Ask Goldman Sachs to compose you a contract


AGNC Investment Corp | 8.000% Series A Cumulative Redeemable Preferred Stock (AGNCP)

This preferred is marked as having been called.
Prospectus excerpt: American Capital Agency Corp. is offering to the public 6,000,000 shares of 8.000% Series A Cumulative Redeemable Preferred Stock. This is an original issuance of the Series A Preferred Stock. The company will pay quarterly cumulative dividends on the Series A Preferred Stock, in arrears, on the 15th day of each January, April, July and October (provided that if any dividend payment date is not a business day, then the dividend which would otherwise have been payable on that dividend payment date may be paid on the next succeeding business day) from, and including, the date of original issuance at 8.000% of the $25.00 per share liquidation preference per annum (equivalent to $2.000 per annum per share).

The Series A Preferred Stock will not be redeemable before April 5, 2017, except under circumstances intended to preserve the qualification as a real estate investment trust, or REIT, for federal income tax purposes and except as described below upon the occurrence of a Change of Control (as defined herein).

On or after April 5, 2017, the company may, at their option, redeem any or all of the shares of the Series A Preferred Stock at $25.00 per share plus any accumulated and unpaid dividends to, but not including, the redemption date. In addition, upon the occurrence of a Change of Control, the company may, at their option, redeem any or all of the shares of Series A Preferred Stock within 120 days after the first date on which such Change of Control occurred at $25.00 per share plus any accumulated and unpaid dividends to, but not including, the redemption date.

The Series A Preferred Stock has no stated maturity, is not subject to any sinking fund or mandatory redemption and will remain outstanding indefinitely unless repurchased or redeemed by the company or converted into the company's common stock in connection with a Change of Control by the holders of Series A Preferred Stock.

Upon the occurrence of a Change of Control, provided that the Common Stock Authorization (as defined herein) has occurred at or prior to such Change of Control, each holder of Series A Preferred Stock will have the right (subject to the company's election to redeem the Series A Preferred Stock in whole or in part, as described above, prior to the Change of Control Conversion Date (as defined herein)) to convert some or all of the Series A Preferred Stock held by such holder on the Change of Control Conversion Date into a number of shares of the company's common stock per share of Series A Preferred Stock equal to the lesser of:

the quotient obtained by dividing (i) the sum of the $25.00 liquidation preference per share of the Series A Preferred Stock plus the amount of any accumulated and unpaid dividends thereon to, but not including, the Change of Control Conversion Date (unless the Change of Control Conversion Date is after a dividend record date (as defined herein) and prior to the corresponding dividend payment date (as defined herein) for the Series A Preferred Stock, in which case no additional amount for such accrued and unpaid dividends will be included in this sum) by (ii) the Common Stock Price (as defined herein); and

1.7100 (the “Share Cap”), subject to certain adjustments as explained herein; in each case, on the terms and subject to the conditions described in the prospectus supplement, including provisions for the receipt, under specified circumstances, of alternative consideration as described in this prospectus supplement.

If, following a Change of Control, the Common Stock Authorization has not occurred and the company has not exercised their option to redeem the Series A Preferred Stock as described above, they will increase the cumulative dividend rate by 300 basis points per annum. Holders of shares of the Series A Preferred Stock will be entitled to receive cumulative cash dividends from, and including, the first date on which the Change of Control has occurred at the increased rate for so long as they have not exercised their option to redeem the Series A Preferred Stock.

Full Prospectus PDF », AGNC Page »

Series:A
Redeemable?:Yes
Call Date:4/5/2017 (Now Trading Post Call Date)
Perpetual?:Yes
Cumulative?:Yes
Shares Offered:6000000
Overallotment:900000
Liquidation Preference:$25
Original Coupon:8.00%
Pay Period:Quarterly
Pay Dates:15-Jan, 15-Apr, 15-Jul, 15-Oct
AGNC Investment is a real estate investment trust. Co. primarily invests in agency residential mortgage-backed securities for which the principal and interest payments are guaranteed by a U.S. Government-sponsored enterprise, such as the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, or by a U.S. Government agency, such as the Government National Mortgage Association (collectively referred to as GSEs). Co. may also invest in other types of mortgage and mortgage-related residential and commercial mortgage-backed securities where repayment of principal and interest is not guaranteed by a GSE or U.S. Government agency.

Preferred: AGNCP


Open the AGNC Information Page »
Name: AGNC Investment Corp
Website: agnc.com
Sector: REITs
Number of ETFs Holding AGNC: 61 (see which ones)
Total Market Value Held by ETFs: $978,832,158
Total Market Capitalization: $7,716,000,000
% of Market Cap. Held by ETFs: 12.69%

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