How can you buy those futures as a regular joe? CBOE seems to be aimed at certified traders
You need to find a futures broker that offers it, and open account with them...
Bitcoin Futures Start with a Bang as Rally Trips Circuit Breaker
131–140 of 220 posts
Re: Bitcoin Futures Start with a Bang as Rally Trips Circuit Breaker
#132Earlier quoted context omitted.
You can't, on purpose. The idea is that there are two kinds of investors: Sophisticated ones who can look out for themselves, and regular joes, who are protected against being ripped off by extra regulations and extra paperwork. Bitcoin futures aren't the kind of product for which anyone will go though those regulations and do that paperwork. Now, how do you become a sophisticated investor? First of all, have a spare…
I can imagine bitcoin will one day become tightly regulated and only available to sophisticated traders; the network only supports 15 transactions per second, limiting who can do trades is one way to deal with it. NYSE can do about 11K a second (based on https://www.quora.com/What-is-the-average-total-number-of-tr... )
The amount of transactions the bitcoin network can handle is totally unrelated to the amount of trades that can be performed on exchanges.
Re: Bitcoin Futures Start with a Bang as Rally Trips Circuit Breaker
#133Earlier quoted context omitted.
That's pretty much what people use stock market for anyway. Most investors are no warren buffet, they bet at best on educated guesses.
It's a shame that there isn't a common word in English to distinguish between positive-expected-value gambling and negative-expected-value gambling. They are fundamentally different pursuits.
speculation?
Re: Bitcoin Futures Start with a Bang as Rally Trips Circuit Breaker
#134I am trying to understand risks with arbitrage for professional traders with BTC spot (at Coinbase gdax) and CBOE Futures contract. Let us say, some professional trader "Short sell CBOE Future contract & Buy BTC Spot at Coinbase simultaneously" At the time of this writing, Futures contract short sell @ $18700 and BTC Spot buy @ $16700 simultaneously. http://cfe.cboe.com/cfe-products/xbt-cboe-bitcoin-futures you wait…
As others pointed out, when you buy/sell futures, you risk counterparty risk. But it's not that bad because that exchange is really good and people entering the market pay margin calls every day. There is also a financing cost (ie. the cash you use to pay for your margins, transaction costs, and to buy the bitcoins will not pay you any interests over the time of the position). But again, the effect is not very large.…
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Re: Bitcoin Futures Start with a Bang as Rally Trips Circuit Breaker
#135I am trying to understand risks with arbitrage for professional traders with BTC spot (at Coinbase gdax) and CBOE Futures contract. Let us say, some professional trader "Short sell CBOE Future contract & Buy BTC Spot at Coinbase simultaneously" At the time of this writing, Futures contract short sell @ $18700 and BTC Spot buy @ $16700 simultaneously. http://cfe.cboe.com/cfe-products/xbt-cboe-bitcoin-futures you wait…
sorry I have no idea about futures but where the $10000 figure coming from?
Re: Bitcoin Futures Start with a Bang as Rally Trips Circuit Breaker
#136Earlier quoted context omitted.
From my experience, the way you find out there's an issue with the exchange is when you see people posting on /r/bitcoin about having waited weeks for their withdrawal to be processed. Meanwhile the exchange continues to accept deposits.
Presumably you can watch the exchange's wallets and see anomalous behaviour relatively easily?
Maybe, I guess? I feel like you'd almost need insider knowledge of the exchange to be able to tell what is anomalous.
Re: Bitcoin Futures Start with a Bang as Rally Trips Circuit Breaker
#137I am trying to understand risks with arbitrage for professional traders with BTC spot (at Coinbase gdax) and CBOE Futures contract. Let us say, some professional trader "Short sell CBOE Future contract & Buy BTC Spot at Coinbase simultaneously" At the time of this writing, Futures contract short sell @ $18700 and BTC Spot buy @ $16700 simultaneously. http://cfe.cboe.com/cfe-products/xbt-cboe-bitcoin-futures you wait…
You are forgetting the fact that bitcoin can also go to zero during which there's counter party risk.
Re: Bitcoin Futures Start with a Bang as Rally Trips Circuit Breaker
#138I am trying to understand risks with arbitrage for professional traders with BTC spot (at Coinbase gdax) and CBOE Futures contract. Let us say, some professional trader "Short sell CBOE Future contract & Buy BTC Spot at Coinbase simultaneously" At the time of this writing, Futures contract short sell @ $18700 and BTC Spot buy @ $16700 simultaneously. http://cfe.cboe.com/cfe-products/xbt-cboe-bitcoin-futures you wait…
As others pointed out, when you buy/sell futures, you risk counterparty risk. But it's not that bad because that exchange is really good and people entering the market pay margin calls every day. There is also a financing cost (ie. the cash you use to pay for your margins, transaction costs, and to buy the bitcoins will not pay you any interests over the time of the position). But again, the effect is not very large.…
I'm more curious about market makers. I'll be a lot more willing to accept this as a sign that BTC is maturing once that happens.
Re: Bitcoin Futures Start with a Bang as Rally Trips Circuit Breaker
#139Earlier quoted context omitted.
As if there was any link between BTC and economic events...
was this a /s? IF it's not: With the current HODL mentality, you can imagine the bitcoin price go even higher. I wish the same HODL'ers were around in 2008, things would have been much different. "Buy the dips" is the best investment strategy that became mainstream thanks to bitcoin.
Wait, I’m sorry, are you claiming that Bitcoin HODL’ers gave us the ‘buy the dips’ strategy? :)
Re: Bitcoin Futures Start with a Bang as Rally Trips Circuit Breaker
#140I think Bitcoin will become the principal store of crypto value. There will be other cryptos for different uses and Bitcoin will serve as a medium of exchange among them and as a long term store of value, it probably won’t become the everyday currency we all want to use. Hopefully these futures will reduce its volatility and help stabilize the price
>Hopefully these futures will reduce its volatility and help stabilize the price
Only if you ignore the constant threat of bad actors, technical failures, and lack of regulation. We might even see previous financial/accounting scams and fraud replayed in the Bitcoin world.