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0 pointscwkoss8y ago0 comments

You can't create an account with them, transfer in $50M worth of stock, and transfer out the USD all in the same day.

Frankly, I'd be fairly surprised if you could even transfer $50M into a self-serve account the same day your account is created - likely some compliance and human-intervention guardrails would slow this further than transferring several thousands of dollars worth of stock. But even so, USD transfer is going to take at least a day.

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3 comments · 1 top-level

abakker8y ago· 2 in thread

Transfers between accounts != liquidity. Liquidity is selling an asset without moving the price. If you sell $50m of AAPL, a highly liquid stock, the price may move a bit, but not a ton. If you actually sold $50m of bitcoin, you would probably have trouble getting the buyers AND the price would fall.

omarchowdhury8y ago

According to the current orderbook on GDAX, you can market sell $50M of BTC, and the price would drop to a little above $7000 (on GDAX). So, no, you wouldn't have trouble getting the buyers since they are right there on the order books, but yes, the price would fall. You'd still get your $50M.

cwkossOP8y ago

Bitcoin is certainly much less liquid than AAPL, but thats somewhat off topic.

Person I was replying to was talking about daily transaction limits, not liquidity. My point was that the standard he proposed is not even met by the biggest online stock exchange platforms.

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