Business Insider goes deep into the theory

Who doesn't love a conspiracy theory? Especially one involving financial markets.

Business Insider today goes deep into a conspiracy theory that Nigel Farage helped someone make untold millions on the night of the Brexit vote.

There is absolutely no evidence it happened but a few hours before his Leave side won, Farage said "It looks like Remain will edge it". That comment helped to send cable to 1.50 from 1.48. Hours later as the results came in, the pound reversed and crumbled to 1.30.

The theory is that someone had initiated a knock-in short option around 1.48 that would only go into effect if 1.50 was hit, making it cheaper to buy. So buy somewhat conceding defeat, Farage triggered it; but because he knew Leave would win, it would go onto make many millions.

Ok, so my problem with this is that if Farage knew Leave would win and was conspiring with someone, why not just short the pound? There's no need for the knock-in strategy.

Farage laughed out loud when Business Insider discussed the theory with him. "I think the Russians might have done it! ... I personally made $US200 million!" he said. "You're all off your heads!"

Anyway, it's an interesting read.