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Nasdaq Plans to Introduce Bitcoin Futures

bloomberg.com

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Re: Nasdaq Plans to Introduce Bitcoin Futures

#11

Post by fragsworth »

Hopefully it's not cash settled like the CME. That is the worst idea ever, and will probably cause a lot of people to get screwed over by market manipulation. Especially since the CME is basing the cash settlement price on a single exchange: GDAX. Anyone can go to GDAX and crash or spike the price for one minute at 4:00pm any day and trigger a bunch of margin calls on the CME.

Especially considering how easy it is to make a bitcoin transaction (compared to things like wheat, or oil...) it really should be "bitcoin settled".

Re: Nasdaq Plans to Introduce Bitcoin Futures

#12

Post by bluGill »

gabesullice wrote: post #8
chinathrow wrote: post #2

I don't know why you should be able to speculate on a speculation product with no real underlying other than a power conversion function.

Serious question: how do you feel about currency futures? If you feel differently about them than you do Bitcoin futures? Why?

currency is a real thing that is mostly used for real transaction. Most people working in currency futures are working to offset risk - that is I shipped a widget when it is delivered the buyer will pay a set price in their currency which I have to convert back to mine. Bitcoin is used for transactions, but most of the futures are based on speculation on future value and not something fundamental.

Re: Nasdaq Plans to Introduce Bitcoin Futures

#14

Post by Kiro »

chollida1 wrote: post #10

My guess is that this is probably pretty meaningless. There are a few things going against them. - The CBOE and CME are both much larger futures exchanges and are going to be offering futures first - since you can't net out futures contracts from different exchanges this means they tend to become winner take all > One way Nasdaq seeks to differentiate itself seems to be in the amount of data it uses for pricing the d…

One difference is that NASDAQ is a name everyone in the world knows while CME is fairly anonymous. Yes, I know they are bigger but I can assure you that if you ask random people in my country most would know NASDAQ while very few would know CME. Seeing NASDAQ is adding it will add to the hype.

Re: Nasdaq Plans to Introduce Bitcoin Futures

#15

Post by wmf »

fragsworth wrote: post #11

Hopefully it's not cash settled like the CME. That is the worst idea ever, and will probably cause a lot of people to get screwed over by market manipulation. Especially since the CME is basing the cash settlement price on a single exchange: GDAX. Anyone can go to GDAX and crash or spike the price for one minute at 4:00pm any day and trigger a bunch of margin calls on the CME. Especially considering how easy it is to…

It's not just GDAX: http://www.cmegroup.com/trading/cf-bitcoin-reference-rate.ht...

Re: Nasdaq Plans to Introduce Bitcoin Futures

#16

Post by fragsworth »

wmf wrote: post #15
fragsworth wrote: post #11

Hopefully it's not cash settled like the CME. That is the worst idea ever, and will probably cause a lot of people to get screwed over by market manipulation. Especially since the CME is basing the cash settlement price on a single exchange: GDAX. Anyone can go to GDAX and crash or spike the price for one minute at 4:00pm any day and trigger a bunch of margin calls on the CME. Especially considering how easy it is to…

It's not just GDAX: http://www.cmegroup.com/trading/cf-bitcoin-reference-rate.ht...

Oh, I didn't realize. At some point I read it was just GDAX.

Even still, cash settlement is terrible.

Re: Nasdaq Plans to Introduce Bitcoin Futures

#18

Post by misja111 »

fragsworth wrote: post #11

Hopefully it's not cash settled like the CME. That is the worst idea ever, and will probably cause a lot of people to get screwed over by market manipulation. Especially since the CME is basing the cash settlement price on a single exchange: GDAX. Anyone can go to GDAX and crash or spike the price for one minute at 4:00pm any day and trigger a bunch of margin calls on the CME. Especially considering how easy it is to…

>> it really should be "bitcoin settled".

Sorry but you can't have futures on bitcoins that are settled in bitcoins.

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