What is a bet and what does a bet mean?

For example, if a foreign exchange dealer receives an order from a customer for 1,000 lots (foreign exchange trading units, usually 100,000 units of base currency)** euro and dollar and 800 lots of orders to sell euros and dollars, then the remaining 200 lots of euros and dollars after internal hedging have a net long position of 200 euros and dollars, but the company is willing to bear the risk of market fluctuations in this part of the position, and does not put the 200 hands of the net long position of euros and dollars on the bank or ECN to trade, which is called "betting" with the customer. There are no hard and fast rules on how to hedge risks in the relevant US laws and regulations, and it all depends on the broker's own risk control strategy. If the client's order can be fully hedged in time, then the market maker almost does not have to bear additional market risk, and the income obtained is relatively stable.

However, in reality, market makers generally make bets to a greater or lesser extent, which increases their own risks. The existence of this hedging and VAM model means that during certain periods of time (such as when major data in the United States is released, or when the market fluctuates violently), you may often not be able to connect to the broker's trading system for effective and rapid trading, because it is difficult for the trader to transfer the market risk in a timely manner within the limited cost range, so simply restrict customers from placing orders or use some other methods, and then blame the problem on network failures or other reasons. This phenomenon of failure to execute orders often occurs in a specific period of time, and it is also common in the foreign exchange real trading of domestic banks.

In addition, some mm model traders will also classify customers, customers may be divided into two categories, customers with strong profitability are separated into a separate division, into the slow mode, such customers face slippage, orders are difficult to fill (repeated inquiry) and other multiple obstacles, but the dealer will always be very cautious to operate so as not to let customers notice. The customers with poor profitability are classified into the automatic execution mode, because from the average point of view, these customers end up losing money, so these customers' orders are ignored, let them open their own toss, and the final net value will become zero, and the money will naturally go into the pocket of the market maker. Market makers and these customers with poor profitability bet on trading, of course, the odds are very high.

As for transparency, it can only depend on the internal policies of these market maker firms.

There are many types of VAM agreements, which can be performance VAM, profit VAM, or condition VAM, and you must ensure your understanding of the project and the validity of the agreement when you sign it.

It's actually a form of option. Through the design of the clauses, the VAM can effectively protect the interests of investors. VAM agreements have been applied in foreign investment banks' investments in domestic enterprises.

A VAM is an agreement between the acquirer (including the investor) and the transferor (including the financier) on uncertain future circumstances when they enter into an M&A (or financing) agreement.

VAM is a financial term, the full name of VAM, which is a series of financial terms set out by the investor and the financier to ensure their respective interests when they reach an agreement on the uncertain future situation.

If the agreed conditions arise, the investor may exercise a right; If the agreed conditions do not arise, the financier exercises another right. Therefore, a VAM is actually a form of option.

It is right to pour the meaning of two people to agree on a price, at the same time, the buyer and the seller to be able to deal at the same time bid, so that it is the transaction, for the opposite, in fact, to be honest, that is, the left hand to the right hand meaning, the exchange for the trading hours of multiple identical**, in order to lower or raise the stock price for the purpose of the behavior will be verified, except for the bulk trading platform.

VAM means that the dealer does not actually execute all the customer's instructions, and the company loses as much as the customer makes, and the company makes as much as the customer loses. The relationship between the company and the customer is one of completely opposite interests. To put it bluntly, the customer and the company are doing it against each other.

Before there were several investment companies (doing ** spot, foreign exchange investment) to do their own banker betting, such as doing London gold investment, the customer invested 100,000, but the company did not help him transfer the money to the international platform, but used his own fake electronic platform (its own server) to let the customer operate, the customer lost money is the company earned, the customer operation wins, the company itself gives money instead of winning money from the international trading platform. I also caught a few such gambling companies before.

A VAM refers to an agreement designed by the investor and the financier to adjust the valuation of the target company in the future in order to solve the uncertainties, information asymmetry and cost of the target company's future development between the two parties to the transaction when they reach an equity financing agreement.

From the perspective of the entities that enter into VAM agreements, there are forms of VAM between the investor and the shareholders or actual controllers of the target company, the VAM between the investor and the target company, and the VAM between the investor and the shareholders and the target company. When a people's court hears a VAM dispute case, it shall apply not only the relevant provisions of the Contract Law, but also the relevant provisions of the Company Law.

It is necessary not only to adhere to the principle of encouraging investors to invest in real enterprises, especially scientific and technological innovation enterprises, so as to alleviate the financing difficulties of enterprises to a certain extent, but also to implement the principle of capital maintenance and the principle of protecting the legitimate rights and interests of creditors, and balance the interests of investors, company creditors and companies in accordance with the law.

Determination of validity: There is no controversy in the theoretical and practical circles about the validity of the VAM between the investor and the actual controller or controlling shareholder of the target enterprise, but the validity of the VAM between the investor and the target company is the most controversial.

Some scholars believe that, from the perspective of private law, VAM, as a form of property self-valuation mechanism in private law, can be attributed to an atypical contract that is close to the contract with effective conditions, and there is no legal obstacle to the operation of VAM in private equity investment under the current legal framework of China.

However, in the current context of China's Company Law, based on the principle of capital maintenance and the protection of creditors' interests, the court has a negative attitude towards the validity of the VAM between the investor and the target company, while the arbitration institution tends to take a positive attitude based on the consideration of respecting the autonomy of will and adhering to commercial thinking. The determination of the difference between the court and the arbitration institution on the validity of VAM agreements has been confirmed by a large number of adjudication documents.

The above content refers to: Encyclopedia - VAM Agreement.

Legal analysis: A VAM is not gambling, but simply put, it means that in the course of an investment, when the investor and the financier reach an investment agreement, both parties agree on the uncertain circumstances of the target company in the future, and if the agreed conditions are fulfilled, the financier can exercise the corresponding rights; If the agreed conditions are not fulfilled, the investor will exercise certain rights.

Legal basis: Article 70 of the Law of the People's Republic of China on Public Security Administration Punishments: Those who provide conditions for gambling for the purpose of profit, or who participate in gambling with a large amount of money, shall be detained for up to five days or fined up to 500 yuan; where the circumstances are serious, they are to be detained for between 10 and 15 days and fined between 500 and 3,000 RMB.

Hello, dear. A bet is a gamble between two or more people on an outcome. In a bet, everyone bets a certain amount of money or other items for a specific outcome.

For example, in a soccer match, two brothers might bet on which team will win the game. The stakes depend on the agreement of the participants, and after the outcome is determined, the stakes are paid out to the winner of the stool. Gambling is considered illegal in many regions because it involves gambling activities that can lead to financial risks and social problems.

In most cases, betting is discouraged and should be avoided.

Hello, dear. VAM refers to an agreement reached between the parties, and then according to the agreement of the short key, the two parties agree to gamble or bet under certain or some specific circumstances. Then in the betting, the participants usually put forward different views or **, and both parties agree to bet or gamble under specific conditions according to their own judgment and confidence, so as to determine the final victory.

Gambling can be made between individuals, and it can also appear in business, law, and other fields. The outcome of a bet is usually determined based on the occurrence or non-occurrence of certain conditions, such as the outcome of a certain event, the performance within a specific time, etc. VAM is controversial both legally and ethically because it involves gambling practices that can lead to risks and adverse consequences.

When participating in VAM, you should consider carefully and comply with local laws and regulations.

Legal analysis: A VAM is actually a form of option, as long as it is signed in accordance with the law, there is no invalidity, and it is legal. The literal translation of VAM means "valuation adjustment mechanism", which is an agreement between the investor and the financier on the uncertain future situation when the investor and the financier reach a financing agreement.

The legal basis is Zihe:

Article 143 of the Civil Code of the People's Republic of China.

Civil juristic acts that meet the following conditions are valid:

1) The perpetrator has the corresponding civil register and capacity;

2) The meaning is genuine;

3) Do not violate the mandatory provisions of laws and administrative regulations, and do not violate public order and good customs.