81–90 of 118 posts
How can you be diligent at identifying risks in bitcoin derivatives? O_o
>"The decision to clear client trades will be made on a case-by-case basis, the person said." Could someone say what "clearing the trades" mean here?
Has anyone discussed the future of forks with respect to futures? Or indeed to any cryptocurrency denominated debts. The easy case is: Alice owes Bob 1.0 BTC in year 2020. Between then and now, BTC forks into BTC and BTZ -- and so now Alice Owes bob 1.0 "new" BTC and zero BTZ. On net, does this mean that whatever fork retains the legal position of BTC is going to be in more demand than hypthetical BTZs? Given that, w…
This should give the big Wall St banks the ability to muck with crypto prices however they choose, just like they can do with gold and silver and other commodities (for example, Goldman magically closed gold positions and sold short 2 days before historic 25% price drop in 2 trading days in 2013[0]) Hopefully people will read those contracts and understand how delivery actually works and realize that COMEX or whoever…
> This should give the big Wall St banks the ability to muck with crypto prices however they choose, The current status quo is that large bitcoin holders can muck with crypto prices however they choose.
>"The decision to clear client trades will be made on a case-by-case basis, the person said." Could someone say what "clearing the trades" mean here?
Clearing is all about novation. This basically means that the buyer and seller don't see each other as counterparties, but only see Goldman as the "middle-man" counterparty. It's a method of reducing counterparty risk, as both parties end up transacting with a credible institution, rather than directly with each other. This also means that the central clearing counterparty takes on counterparty risk, and that's prett…
Has anyone discussed the future of forks with respect to futures? Or indeed to any cryptocurrency denominated debts. The easy case is: Alice owes Bob 1.0 BTC in year 2020. Between then and now, BTC forks into BTC and BTZ -- and so now Alice Owes bob 1.0 "new" BTC and zero BTZ. On net, does this mean that whatever fork retains the legal position of BTC is going to be in more demand than hypthetical BTZs? Given that, w…
Has anyone discussed the future of forks with respect to futures? Or indeed to any cryptocurrency denominated debts. The easy case is: Alice owes Bob 1.0 BTC in year 2020. Between then and now, BTC forks into BTC and BTZ -- and so now Alice Owes bob 1.0 "new" BTC and zero BTZ. On net, does this mean that whatever fork retains the legal position of BTC is going to be in more demand than hypthetical BTZs? Given that, w…
The reference bitcoin index for futures is well-defined: http://www.cmegroup.com/trading/files/bitcoin-reference-rate...
I would guess that this was done in collaboration with the relevant exchanges. So forks are pretty much a don't-care for the futures that begin trading in the next two weeks.
Earlier quoted context omitted.
Yeah. Or worse, you have orders that are filled, but because they are market orders and the market has disappeared, they aren't filled at anywhere close to the price you expected. At my first job I had a project that involved looking at the actual order book for various stocks on the NASDAQ. There's always some asshole who puts in a limit buy for $0.01 on the hopes that if liquidity dries up, they'll be the best bid…
>There's always some asshole who puts in a limit buy for $0.01 on the hopes that if liquidity dries up, they'll be the best bid and get the stock for literal pennies on the dollar ... Because your stop is actually a market order, you take whatever price the market gives you, which is...$0.01. Why doesn't everyone do this constantly if it's a possibility? Low chance of such a windfall, but what's the downside?
With regulated exchanges like the major stock ones, you also have to worry about your transactions being invalidated, eg. in the 2010 flash crash nobody who did this actually got paid out because the exchange said "Oops, software glitch" and canceled all transactions before settlement (with the stock market, you don't actually receive the stock until 3 days after you make the transaction).
Has anyone discussed the future of forks with respect to futures? Or indeed to any cryptocurrency denominated debts. The easy case is: Alice owes Bob 1.0 BTC in year 2020. Between then and now, BTC forks into BTC and BTZ -- and so now Alice Owes bob 1.0 "new" BTC and zero BTZ. On net, does this mean that whatever fork retains the legal position of BTC is going to be in more demand than hypthetical BTZs? Given that, w…
Another question (this is just my ignorance) but...if BTC has a fork, does that mean that the new fork has a new entire supply? I thought the "value" in BTC is that there is a limited supply and it can't be degraded like a fiat currency. If you can just keep forking...how is that not immeasurably increasing supply just like the ECB and Fed do?