CBOE Bitcoin USD Futures

Discussion in 'Crypto Assets' started by m22au, Nov 25, 2017.

  1. MrMuppet

    MrMuppet

    I'm pretty sure, you don't quite understand how this market works. There is no "Broker" in Krypto's an you don't need to hold everything on the exchange.

    Please educate yourself before you do something stupid.
     
    #11     Nov 27, 2017
  2. MattZ

    MattZ Sponsor

    When it comes to Bitcoin Futures, there will be a broker/FCM involved. I think he was trying to say that he prefers to have his funds held in a tightly regulated entity, as opposed to all those entities that call themselves "exchanges" and provide leverage.
     
    #12     Nov 27, 2017
  3. MrMuppet

    MrMuppet

    That's what I was refering to. I'm not vouching for OTC trading, but I see a lot of issues with the exchange traded futures, circuit breakers for the most part.

    So if you just want to hedge, the regulated futures are better, since no counterparty risk.

    If you trade with leverage intraday, you probably want to think about trading OTC, since with futures, you risk running into circuit breakers every couple of minutes.

    BTC is extremely volatile and especially on the way down, liquidity is zero. Which means you could get locked limit down within a few ticks.


    And remember: when you work with a clearing firm and your account goes into negative teritory, you owe miney and they will collect as long as you're not bankrupt.


    When you trade OTC, they can run with your money. But when you blow up, all you lose is your deposit on the exchange.


    As I said, it's worth going down the rabbit hole. Product selection depends on what you want to do.

    I just thing that most people asume the BTC future will trade like lets say gold or oil, while they should rather expect the volatility and liquidity of a penny stock.


    The entire crypto market has less market cap than AAPL, so if you think you can trade it on a retail account with indicators or orderflow like you do with CL or 6E, you most likely will be disappointed
     
    #13     Nov 27, 2017
    MattZ likes this.
  4. Sig

    Sig

    So keep your long positions with CME/CBOE and your shorts with an unregulated OTC right? That way your max loss when bitcoin unexpectedly goes much higher is limited to your deposit, and clearing protects you from any joker who can't meet their margin call.
     
    #14     Nov 27, 2017
    MrMuppet likes this.
  5. Overnight

    Overnight

    #15     Nov 27, 2017
  6. Maverick74

    Maverick74

    #16     Nov 27, 2017
  7. Overnight

    Overnight

    Looks like it has been out for about 3 years. I am not swift with Morningstar stats and have no experience with ETFs, but most of the stats I recognize are blank.

    Who maintains the trust?
     
    #17     Nov 27, 2017
  8. Maverick74

    Maverick74

    https://grayscale.co/bitcoin-investment-trust/

    Full disclosure: google assisted me with the location of this site on the interweb.
     
    #18     Nov 27, 2017
  9. Overnight

    Overnight


    Full disclosure: Yes yes, no need to be smarmy. I try to ask people in the know BEFORE resorting to the "interweb". It is a scary place, and I like to use ET as a buffer when it comes to trading knowledge. :)
     
    #19     Nov 27, 2017
  10. I'm aware of that idiot I'm referring to heavy trading requires money to be held with the broker to constantly buy and sell. I'm not talking about buying and holding it in cold storage.
     
    #20     Nov 27, 2017
    JackRab likes this.