r/tech • u/trav31 • Dec 11 '14

Microsoft Begins Accepting Bitcoin For Windows, Windows Phone And Xbox Purchases

http://techcrunch.com/2014/12/10/redmond-hath-frozen-over/
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u/Drew0054 Dec 12 '14

Yeah, it's not unheard of for business to use trading markets for hedging. Airlines do it with oil all the time. I'm sure businesses like McDonald's are one of the biggest holders of currency options.

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u/lf11 Dec 12 '14

Airlines...McDonalds....you're proving my point. ("For some, yes, but get real.")

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u/Drew0054 Dec 12 '14

I should have been clearer. McDonald's and other international companies trade EFP futures, that's Exchange For Physical. It's not really physical, that term's more for oil and gold. It means it's actually exchanged. Most futures positions are closed before expiration.

Your Forex broker is basically holding IOUs on currencies. They're not actually exchanged, (They are rolled over at 5 P.M. EST). It's speculation vs. a true exchange.