Anibody preparing susterms for bitcopinm futures trading?
Honestly crypto futures trading scares me. I’ve been in crypto for years and I’ve seen many sorts of leveraged crypto schemes absolutely destroy people using them. As an example, just a few months ago a big (moron) trader sold a bunch of ethereum on the GDAX exchange with a huge market order. The amount sold was large enough to immediately eat up the order book and crush the price low enough that it triggered stops causing more selling which triggered leveraged account liquidations causing even more selling, etc. The result was Ethereum fell from (I don’t recall the exact numbers but) $200 to $0.10 in a matter of seconds. The price soon rebounded as new buyers brought the price back up. But EVERYONE that was leveraged on the entire exchange was completely wiped out or had their stops hit. All stops were hit too, which goes to show how stops can bite you.
I know the various futures exchanges will have trading collars and will halt trading at various price drop levels, but somehow that doesn’t make me feel better. Crypto has spectacular rises and spectacular falls… and the spectacular falls will really, really hurt with the leverage of futures.
Maybe futures will add a doorway allowing big money to enter and add support to bitcoin and actually reduce its volatility. That would be a nice result. But for myself I’d watch it and let it age for a long while to see how it goes before I would risk any leverage at all.
Dont get it - Is Etherum traded on Eurex exchange?
(GDAX is an index)
Name is same as Germany 30 index.
Only Bitcoin so far will go to CME and CBOT.
Inital margin will be 35 %; not sure of size of contract.
CME 5 bitcoins per contract
CBOT 1 bitcoin.
CBOT launches tomorrow. CME on Dec 18th I believe.
Ethereum will have futures also supposedly “in a matter of weeks not months.”
Not cbot it’s cboe …