Bitcoin Futures - CME Group

Importing Data (custom market data/data arrays) into TradeStation

So Tradestation basically doesn't have a web api that they make available to normal retail, its only for third party companies doing certain things apparently, based on what I've been told.
The only way I can see to actually program something outside tradestation and easy language is to create buy/sell signals outside tradestation and process it through a python application that uses the custom array formatting that tradestation requires and saves as a csv file that is imported and plotted as signals on tradestation charts.
I saw this in some articles by a tradebook writer named george pruitt, but beyond that I can't find any examples of people having done this, so if anyone has examples or experience I'd love to hear it to know if this is worth fooling with.
To be more specific about *why* I want to use tradestation, well as a broker they are the only ones with access to bakkt and cme bitcoin options, as well as normal equity options that I am aware of, and I've been trying to figure out how to algorithmically trade regulated bitcoin options and futures and equity options in one place.
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Why may bitcoin get down to $9,700 and when will it grow to $100,000?

Why may bitcoin get down to $9,700 and when will it grow to $100,000?

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Opinion: the bitcoin price can fall to $9,700

Amsterdam stock exchange analyst Michaël van de Poppe shared his opinion about the nearest prospects of bitcoin.
He noted that although the price had managed to renew the year’s high, it had failed to settle higher than $12,000. It opens a way to moving further downwards and the final target of this move is the level of $9,700. At this point, the bitcoin futures chart on the CME exchange showed an untraded range: on July 24, Friday the price closed at the level of $9,615 while on Monday trading started at $9,925.
The price gap between these levels has not been closed so far — statistically, the price seeks to return to the empty zone in most cases. The analyst points out that bearish signals prevail at the moment, but buyers can still maintain the upward trend. To do it, they need to maintain the level of $11,400.

The analyst showed how bitcoin would get up to $100,000

Expert Dave the wave popular in Twitter showed how the bitcoin price would move during the next rally.
In his opinion, the price will get to the point of $16,000 very soon where the target of the ascending pennant pattern materialization is. After that the price will go down to $10,000 — the Fibonacci correction level of 0,382. It will happen at the beginning of 2021.
After that the price will enter the new growth cycle and it will test the point of $110,000 by the end of 2022. The intermediate stops will be the levels of $35,000 and $68,000 from which the price will be corrected by 25–30% downwards.

Bloomberg: «something extraordinary» must happen for the bitcoin to become cheaper

Bloomberg strategist Mike McGlown thinks that only something «extraordinary» can stop the growth of the BTC price.
He notes that the width of the Bollinger band indicator is at the same point where it was before the beginning of the pump in 2015. It indicates that maximum fall of the volatility level, which is usually followed by a quick rise in the price.
“Demand and adoption metrics remain favorable vs. the crypto asset’s unique attribute of fixed supply”, McGlown writes.
Bloomberg also points out the correlation between the bitcoin and gold charts. If the metal renews its highs, it may provoke the explosive growth of the cryptocurrency price.
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XRP Isn’t A Security, Declares Former CFTC Chairman

XRP Isn’t A Security, Declares Former CFTC Chairman
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When Chris Giancarlo was the chairman of the Commodity Futures Trading Commission he became a rock-star of sorts in certain corners of the cryptocurrency community, helping establish criteria that eventually led to bitcoin and ethereum being declared commodities, more like coffee or sugar than stock in a company. The U.S. Securities and Exchange Commission largely followed suit, eventually also declaring that bitcoin and ether, the cryptocurrency powering the ethereum blockchain weren’t securities.
Now chairman emeritus Giancarlo, who was deemed “Crypto Dad” following an impassioned speech he gave to Congress where he credited bitcoin for finally getting his kids interested in finance, is at it again, having co-written a detailed argument published this morning in the International Financial Law Review for why XRP, the cryptocurrency formally known as “ripples,” was also not a security. The only problem is he’s no longer a regulator. In fact, his employer is on the payroll of Ripple, the largest single owner of XRP, whose co-founders actually created the cryptocurrency.
The bombshell paper, titled, “Cryptocurrencies and U.S. Securities Laws: Beyond Bitcoin and Ether,” co-authored by commodities lawyer Conrad Bahlke of New York law firm Willkie Farr & Gallagher LLP, methodically reviews the criteria of the Howey Test, established by the SEC in 1946 to determine whether something is a security, and point-by-point argues that XRP does not qualify. Rather, the paper argues, like its name would indicate, cryptocurrency is a currency of perhaps more interest to the Federal Reserve and central banks than securities regulators.
What’s at stake here to the cryptocurrency world cannot be overestimated. XRP is now the fourth largest cryptocurrency by market cap, with $5.9 billion worth of the asset in circulation according to cryptocurrency data site Messari. While Ripple was valued at $10 billion according to its most recent round of funding, the company continues to fund itself in part by selling its deep war chest of 55.6 billion XRP, coincidentally valued at the same amount as the company itself.
Not only could an eventual decision by the SEC to classify—or not classify—XRP as a security impact the untold individual owners of the cryptocurrency, but other clients using Ripple services that don’t rely on the cryptocurrency, including American Express, Santander, and SBI Holdings could stand to be impacted positively or negatively depending on the decision. After all if XRP were to be rescinded it would be a huge cost to their software provider. If Giancarlo is right though, Ripple could end up being one of the most valuable startups in fintech.
“Ultimately, under a fair application of the Howey test and the SEC’s presently expanding analysis, XRP should not be regulated as a security, but instead considered a currency or a medium of exchange,” Giancarlo and Bahlke argue in the paper. “The increased adoption of XRP as a medium of exchange and a form of payment in recent years, both by consumers and in the business-to-business setting, further underscores the utility of XRP as a bona fide fiat substitute.”
Giancarlo was nominated to be a commissioner of the CFTC by then-President Barack Obama in 2013. In 2015, he helped lead the thinking behind the CFTC’s decision that bitcoin and other cryptocurrencies were commodities, paving the way for the SEC’s related comments that neither bitcoin nor ethereum are securities. Then, at the height of the 2017 cryptocurrency bubble President Trump nominated him to be Chairman of the CFTC, where he oversaw the creation of a number of bitcoin futures projects, including at CME Group and the short-lived effort at Cboe.
While many blame the creation of bitcoin futures for popping the 2017 price bubble, which almost hit $20,000 before halving today, others have seen the works as a fundamental process of maturity, helping pave the way for more sophisticated crypto-enabled financial offerings. Giancarlo’s last day in office at the CFTC was in 2019, after which he promptly got involved helping envision the future of assets issued on a blockchain. In November he joined as an advisor to American Financial Exchange, using ethereum to create a Libor alternative. The following January he co-founded the Digital Dollar Project leading the push to use blockchain at the Federal Reserve and now it would seem he’s hoping to influence the classification of XRP as he did for bitcoin and ethereum, but from the other side of regulation.
Importantly however, a footnote in the report discloses that not only is Giancarlo and Bahlke’s firm, Willkie Farr & Gallagher LLP counsel to Ripple Labs, but they “relied on certain factual information provided by Ripple in the preparation of this article.” While it’s impossible to parse what information came from the co-authors and what came from Ripple, the resulting legal argument is fascinating, even if it does leave room for doubt.
The Howey test Giancarlo uses to bolster his arguments is a three-pronged definition used by the SEC, none of which he says apply to XRP. The first prong, is that an investment contract should be implied or explicitly stated between the issuer of the asset, in this case XRP and the owner, in which money exchanges hands. “The mere fact that an individual holds XRP does not create any relationship, rights or privileges with respect to Ripple any more than owning Ether would create a contract with the Ethereum Foundation, the organization that oversees the Ethereum architecture,” he writes.
This does however overlook the fact that OpenCoin, credited on Ripple’s own site in 2013 for creating XRP (then tellingly described as “ripples”), was run by many of the same people that founded Ripple. The original creators of XRP then donated the vast majority of the assets to Ripple, which they also ran, creating a sense of distance, tacit though it may be. The actual data around the creation of XRP was also muddled by a glitch in the code that means unlike bitcoin and ethereum the crucial genesis data is no longer attached to the rest of the ledger. The rebranding of “ripples” as XRP further extended the sense of distance between XRP and Ripple, followed by an aggressive campaign to get media to stop describing the cryptocurrency as “Ripple’s XRP.”
With so much distance between the company that actually created XRP and the company that now owns more than half of it, one would be forgiven for wondering, if there was an implied contract between OpenCoin and XRP owners, does the donation from one group of people at one company to a very similar group of people at another company sever that responsibility? In spite of the sense of distance created by Ripple between itself and the cryptocurrency its co-founders created, a number of active lawsuits alleging securities violations have been filed. In all fairness though, Giancarlo appears to recognize this prong may not be Ripple’s strongest defense and concludes the section, hedging: “Even if XRP were to satisfy one or two of the “prongs” of the Howey test, it does not satisfy all three factors such that XRP is an investment contract subject to regulation as a security.”
The second prong of the Howey test stipulates that there can be no “common enterprise” between shareholders or a shareholder and the company. While refuting both relationships, Giancarlo curiously goes onto to write that “given the juxtaposition between XRP’s intended use as a liquidity tool, its more general use to transfer value and its potential as a speculative asset, XRP holders who utilize the coins for different purposes have divergent interests with respect to XRP.”
Ironically, there has always been a widely held belief that owning a cryptocurrency would unify interests around a single goal: to co-create the infrastructure that lets the cryptocurrency exist and ensure it was vibrant and diverse. Meanwhile, XRP, in spite of its aggressive supporters on social media, is one of the least diverse ecosystems, with the vast majority of serious development being done within Ripple. If XRP owners aren’t expecting an increase in value from the work being done by Ripple, they certainly aren’t nearly as involved in helping build that future as are owners of bitcoin and ethereum.
In a related issue, the third prong of the Howey test stipulates that “no reasonable expectation of profit should be derived from the efforts of Ripple,” according to the paper. Supporting this position, Giancarlo writes: “Though Ripple maintains a sizable stake of the XRP supply and certainly has a pecuniary interest in the value of its holdings, it is not enough to suggest that a mutual interest in the value of an asset gives rise to an expectation of profits as contemplated by Howey.” Again, this strains credulity.
According to its own site, Ripple currently has access to 6.4% of all the XRP ever created. But that doesn’t count the 49.2% of the total XRP Ripple owns, but is locked in a series of escrow accounts that become periodically available to Ripple and Ripple alone. Adding those two percentages together leaves a float of only about 44% of XRP that has been distributed for public ownership. For some comparison, Facebook went public the same year XRP was created and has a 99% float, according to FactSet data, meaning almost all of its stock is in the hands of traders.While Ripple does also have more traditional stock, this distribution shows that Ripple might not be as distributed as it claims.
While it’s perhaps no surprise that Giancarlo would come out on the side of his own client, there’s also plenty of other reasons to believe his argument may in fact hold water. In February 2018, the notoriously compliant exchange Coinbase added support for XRP, something it would unlikely do if it were concerned it might accidentally be selling an unlicensed security. Perhaps most tellingly though, Ripple has also been granted a difficult-to-obtain BitLicense from the New York Department of Financial Services, giving it the blessing of a respected regulator. However, while the license was granted after then-superintendent Benjamin Lawsky stepped down from the regulator, it's perhaps no coincidence that a year later he joined Ripple on its board of directors and is now active in the cryptocurrency space. Perhaps a similar fate is in store for Giancarlo.
Editor’s note: This article has been updated to clarify that Ripple Labs is a client of Giancarlo’s law firm.
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The Darkpool Theory

Darkpool - the digital asset exchange

Abstract

The market capitalization and trading volume of cryptocurrencies is growing rapidly every month. With institutional investors arriving into the cryptocurrency market, the development of alternative trading systems is critical for trading large blocks of cryptographic assets while maintaining minimal price slippage and market impact.

We live in a world of finance. Monetary incentives and market movements influence our daily decisions and define human lives in general. Under capitalism, the financial industry has become global expressing economic relations between people and institutions. Nowadays, existing wealth distribution mechanisms are inefficient and the economic environment is unstable. A lack of trust become inevitable and we are moving into the new era of decentralized finance (DeFi). Borderless, accessible and transparent interactions between participants without counterparties to transform old and inefficient financial instruments is the new paradigm of the trustless economy.

We introduce Darkpool, the first decentralized dark pool protocol bridging broad digital assets to DeFi. With interoperability in mind and solid team cross-chain expertise Darkpool blockchain will bring new markets to the Cosmos ecosystem providing users with the liquidity and the necessary fundamentals for DeFi applications and services. Trades are placed on a hidden order book and are matched through an engine built on a multi-party computation protocol. This provides order execution without exposing market sensitive information such as price and volume at a certain position, which would provide an advantage to other traders. Darkpool removes the need for a trusted intermediary to operate a dark pool and provides crypto-economic incentives through a protocol token for governance; enabling the development of a secure, decentralized, scalable dark pool protocol capable of handling billions in trading volume daily.


Introduction
The advent of blockchain technologies has enabled the development of an entirely new class of assets backed by cryptographic verification. Bitcoin (BTC) and Ethereum (ETH) are two blockchain-based cryptocurrencies which, as of eclipse the aggregate market capitalization of all other cryptocurrencies.

In November 2017, the volumes for BTC and ETH trades exceeded USD $181B (not including over-thecounter and trades executed on private forums). This statistic, coupled with the announcements of Bitcoin futures markets from CME Group and NASDAQ, signals interest from institutional investors looking to gain exposure to digital cryptographic assets. With institutions and HNWIs looking to deploy vast amounts of wealth into cryptocurrencies, we must develop the underlying infrastructure to support such volumes.

At a fundamental level, dark pools are private exchanges where financial assets and instruments are traded and matched by an engine running on a hidden order book. These exchanges are primarily created to serve institutional or HNW retail investors who require a system where significant volumes of assets can be block traded with minimal price slippage. Dark pools are estimated to represent approximately 15% of all trading volume of all US stock trades [6]. Extrapolating this statistic for BTC and ETH volumes, a dark pool for such has the potential to execute USD $27.2B of orders monthly. We introduce the Darkpool Protocol which facilitates the exchange of Ethereum, ERC20 and Bitcoin cryptocurrencies through a decentralized dark pool. This is enabled through research within subfields of cryptography such as secure multi-party computation, which allow us to develop a matching engine to run on the distributed hidden order book. We facilitate cross-chain trades through atomic swaps and implement proper economic incentives to ensure these trades are executed thoroughly. Compared to a centralized dark pool or exchange, the Darkpool Protocol removes the risk of asset theft, confiscation or possibility of interference from a malicious exchange operator. This leads to greater trust between institutional investors placing block orders and dark pool exchanges leveraging the Darkpool protocol. Additionally, the Darkpool Protocol is available universally and is highly transparent with regards to how the underlying protocol operates.
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Bitcoin options are breaking records, and exchanges are competing for this segment. We will tell you what these tools are and how they work

Bitcoin options are breaking records, and exchanges are competing for this segment. We will tell you what these tools are and how they work
Bitcoin options are breaking records, and exchanges are competing for this segment. We will tell you what these tools are and how they work
The cryptocurrency market is constantly evolving, integrating with the traditional and inheriting complex financial products such as futures and options.
Some types of fixed-term contracts are already firmly established in the bitcoin industry. This is noticeable by the activity of traders on the CME.
However, the situation with options is somewhat different. These derivatives are difficult to understand among ordinary market participants and are not yet so popular.
Nevertheless, there is a demand for such tools, as evidenced by the growth dynamics of this market segment and interest from platforms such as Binance and Bitfinex.
Bitcoin options have already been offered on CME, LedgerX and Bakkt, which are regulated and oriented primarily on whales. Among the unregulated sites, the leader is Deribit, followed by FTX and OKEx.
ForkLog magazine figured out what options are and what types of options are. We will talk about the features of these tools and the current state of affairs in the segment. In this article you will also find comments by leading market experts on the role of options in the industry.

What are options and how do they work?

An option is a financial contract concluded between two parties — the holder and the seller. The first receives the right, but not the obligation, to buy or sell a certain amount of the underlying asset at the strike price (strike price) on a specific date (expiration date).
The seller undertakes to buy or sell the asset at the request of the option holder. The latter pays the seller at the time of purchase of the contract a certain amount of money — the so-called premium.
The rights and obligations of the holder and seller differ significantly. The former has the right to choose whether to exercise the option or not. The seller is obliged to fulfill the terms of the contract at the request of the holder.
Parameters such as the type of underlying asset, expiration date, strike price are fixed at the time of issue of the contract, after which they cannot be changed.
Like futures, options are derivative financial instruments and derivatives. This means that they can be based on various underlying assets (BA) — stocks, indices or cryptocurrencies.
Like the options already existing in traditional finance for all major assets, there are contracts based on BTC and ETH on the cryptocurrency market. They are very interesting financial products“, said Su Zhu, head of Three Arrows Capital, in a conversation with ForkLog.
Options are used both for hedging risks and for speculative trading. For example, a speculator confident in the growth of the underlying asset buys a call option. If the BA price rises above the strike, the trader can use his contract to buy a discounted asset.
Derivatives such as options allow users to hedge risks and generate revenue. Derivatives play a key role in the traditional financial market. These tools are needed so that the cryptocurrency market continues to grow and develop, being filled with new participants“, said Aaron Gong, vice president of Binance Futures.

Practical use of options

Consider the simplest example of options hedging. Suppose there is a company manufacturing tomato paste, sauces and ketchups. There is a farmer supplying this company with tomatoes. He acts in conditions of fierce competition, close to perfect.
It is extremely important for a company to buy raw materials cheaper to minimize production costs and remain profitable. The farmer, in turn, hopes for a long-term cooperation with the company so as not to lose a major client.
The company offers the farmer an option, assuming the right to buy 10 tons of tomatoes of the next year’s crop at the current price — say, $1,000 per ton. To exercise this right, the company pays the farmer an option premium of 3% of the total transaction amount of $10,000, that is, $300.
The farmer will have to, at the request of the company, sell the appropriate quantity of goods at the above price and at a specified time.
A year later, the crop was high, which led to a decrease in the market value of tomatoes to $800 per ton. The company decides not to exercise its right to purchase raw materials for $10,000, as other farmers can buy the same 10 tons of tomatoes for only $8,000.
Thus, having lost only $300 as a premium on an option, the company is insured against price risk. Buying raw materials at a significantly lower market price is more than worth the price of the option contract.
Let’s imagine another scenario: the crop turned out to be unimportant and the price of scarce tomatoes jumped to $1200 per ton. Then the company will certainly take advantage of the right to purchase tomatoes for $1000. Thus, the result is any case.
It is easy to guess that the options can be used by miners to hedge the risks of adverse changes in the price of the extracted asset. For example, expecting a decrease in the price of BTC, miners can use options that give them the right to sell cryptocurrency in the future at a price higher than the breakeven point.
Miners are already very active in options markets. And, probably, they will remain active“, Su Zhu said.
Su Zhu is confident that in the long term, options will make the cryptocurrency spot market more liquid and attractive to a wide range of participants. He added that the growing popularity of such contracts among miners could significantly reduce sales pressure.
Options give miners the opportunity to fix the price of coins mined in the future. Miners can better manage their production costs and protect themselves from market volatility“, said Aaron Gong, expressing confidence that the popularity of options will continue to grow.
According to him, such tools open up new opportunities and may be of interest to speculators, funds and long-term cryptocurrency holders.
“Institutional investors are also showing growing interest in options and other derivatives. Last week it was reported that the famous Wall Street trader Paul Tudor Jones allocated a few percent from his Tudor BVI fund for bitcoin futures. This is a positive signal, which means that more and more institutions are interested in the cryptocurrency market“, Gong added.
However, option strategies are not suitable for every market participant — effective work with these tools requires certain experience, Co-founder of CoinIndex.agency Julia Sporysh is sure:
Of course, in order to use this effectively, the miner must have an experienced trader (option strategies are some of the most difficult on the market) — or they will have to unite and work through specialized trading companies. This market exists, although it is not for the general public.
Also, according to her, options may be of interest to funds and retail traders who have gained a hand in speculative trading.
Options are an independent and good speculative tool. And if you have positions in futures or in the spot market, it’s just the time to explore new opportunities“, added Yulia Sporysh.

Types of options

There are two main types of options — option call and option put. The first gives the right to the contract holder to purchase a certain amount of the underlying asset from the seller (they also say — the inscription) at the strike price on a certain date in the future. This type of option was used in the tomato example.
The put option, on the contrary, gives the buyer of the contract the right to sell the underlying asset at a fixed price. The latter may be higher than the market at the time of expiration, which is beneficial to the trader.
Market participants use the call, predicting an increase in the price of BA, and put — expecting it to decline.
More complex strategies use combinations of these two types of contracts.
There is also the term “covered option”. For example, an option call is covered if the seller has the amount of the underlying asset corresponding to the terms of the contract.
Options may also differ in the style of execution — American or European.
European-style options require the holder to execute the contract exclusively on the expiration date. Such options, in particular, are presented at CME and Bakkt.
American style implies the possibility of contract execution at any time prior to the date of expiration. Options of both styles are traded all over the world, their names have no relation to geographic location.
There are less standardized, exotic options. However, the popularity and importance of such instruments in the financial market is not so great.
Parameters and conditions for trading certain options are described in the specifications for them, which indicate the expiration date, strike price and other elements of the contract.

Premium, strike price and cash option

The option premium is the amount of money paid by the buyer to the seller. The premium is equal to the value of the contract and, in fact, represents a fee for the risk of adverse changes in the value of the underlying asset.
The option premium is formed by two components:
Intrinsic value — the amount that the buyer would receive if the contract were currently executed. It depends on the ratio of the price of the underlying asset and the strike.
Time value — depends on the time remaining until expiration. Usually, the less time it takes to execute a contract, the lower the premium.
As a rule, high price volatility contributes to premium growth, and vice versa. A deal with a close strike price in relation to the current one has much greater chances of closing in profit and, therefore, the premium for such an option will be relatively high.
The strike price is the price fixed in the option at which the buyer of the call option can buy (or sell, if this is a put option) the underlying asset. In turn, the seller of the contract is obliged to sell or buy BA.
Money is an indicator of the ability to receive funds from the exercise of the right to exercise a derivative. In the context of options, cash can be calculated by comparing the spot price of the BA and the strike price of the option. Thus, three options are possible:
• “in the money” option: in the case of a call — if the spot price is higher than the strike (then the intrinsic value of the contract is positive), in the case of a put, on the contrary, if the BA price is lower than the strike;
• option “on money” (or “with one’s own”) — equal strike to current stock quotes, intrinsic value equal to 0;
• the option “out of money” (“without money”) — the exercise of the option is not economically feasible; in such a situation, the current price of the underlying asset is lower than the strike price of the call option or, conversely, the spot price of the BA is higher than the strike price in the case of a put.

Option strategies

There are many option trading strategies. Four basic approaches can be distinguished.
Long call — buying a call option, the investor expects an increase in the price of the underlying asset above the strike on the expiration date of the contract. Then he will be able to buy an asset at a discount to the market price and thus earn on the difference. If the price drops below the strike, the buyer risks only the premium paid for the option.
Long put — is a kind of alternative to a short position in the spot market. The buyer of the put option hopes to make money, assuming that the price of the BA falls below the strike at the time of expiration. In this scenario, the investor may sell the asset at a higher price than the market price.
Also, through a put option, an investor can limit the risk of a fall in the price of an asset that has a long position open. According to Su Zhu, miners may use the “protective put” strategy, in whose activity a substantial and prolonged drop in the price of mined cryptocurrency is undesirable. Through such tools, miners can provide profitable or even break-even activity.
Short call — the investor acts as the seller of the contract, counting on a decrease in the price of BA below the strike on the date of expiration. However, the higher the price of the asset, the more losses the inscription bears. Thus, the risk of the seller of the contract is unlimited, and the profit potential is limited by the premium on the sale of the call.
Short put — the seller of such an option expects a premium on it, being firmly convinced that the price of the BA will be higher than the strike.
Combinations of these basic strategies may underlie more sophisticated options trading approaches, such as:
protective put — purchase of a put option for an available asset;
covered (secured) call — an investor sells a call option to an existing BA or which will be acquired simultaneously with the sale of the option; the strategy reduces the risk of owning an asset, since a fall in its price is partially offset by a premium;
straddle — a kind of bet on volatility, which implies the purchase of a call and put option on the same asset with the same expiration date and the same strike price;
strangle — almost the same as straddle, differs only in different strike prices.

Conclusions

Options are complex financial instruments, their mechanism of work is unlikely to be mastered immediately by most novice traders. Nevertheless, these derivatives may seem interesting to experienced market participants and, in particular, to miners.
The following advantages and disadvantages of options can be distinguished. Of the advantages of these contracts, we note:
- flexibility of use in speculative trading;
- the ability to use many combinations and trading strategies;
- a good tool for hedging risks;
- the ability to use in any trend — upward, downward, sideways.
Disadvantages:
- the difficulty of understanding the mechanism of work, especially for novice market participants;
- asymmetric conditions and, accordingly, risks for the buyer and seller;
- the complexity of trading strategies;
- the volatility of an option premium, which depends on the proximity of the expiration date and price dynamics in the spot market;
- low liquidity.
Different industry players have different cryptocurrency options. Some consider them promising tools useful for miners, funds, retail traders and the market as a whole. Others are convinced that such derivatives are archaism.
Nevertheless, options are gradually taking root in the cryptocurrency market. This is evident in the dynamics of trading volume and open interest. In addition, more and more exchanges are trying to add support for these contracts, which contributes to increased competition and further development of the industry.
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How can you be market neutral in high frequency bitcoin trading?

I read this interesting blog where the author claimed to have built a market neutral trading algo.
I’m assuming that means that when the market went down, the algo shorted bitcoin (maybe through futures on the CME ).
What I don’t understand, is how you can stay market neutral on such short timescales of seconds and minutes, given bitcoin futures span months.
Are there other ways to short sell bitcoin on shorter time scales - How else can you be market neutral?
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5 YouTube Videos about Futures Trading

5 YouTube Videos about Futures Trading
5 YouTube Videos about Futures Trading
How do I start trading crypto futures? Do I know their nature? How does it work? All these questions come to your mind when you discover the world of futures trading. To help you we have found some good videos for you! 🔥
📽 The video is about the nature of future market. Although the video is mainly about agricultural sphere, the explanation with visuals examples is a great way to understand how futures work.
📽 The second video shows how bitcoin futures work. The explanation is made by the man from the London investment house Killik & Co. You will get the first class explanation is given with everyday examples that everyone will understand.
📽 This video is from CME Group Marketplace. It gives us the understanding of how futures contarcts work and what CME’s Bitcoin futures contracts are.
📽 Bitcoin futures are explained in a beginner-friendly way with examples of how futures work in other real world markets. The explanation is about going short vs. long on a futures contract, how futures prices track spot prices, how they are used to hedge against price fluctuations, how they are daily settled and leveraged, and how Bitcoin miners and speculators can use this financial instrument in the Bitcoin/crypto world.
📽 So, you have learnt about the nature of bitcoin futures and their contracts. It’s high time you learnt how to buy bitcoin futures. It is a good explanation from CNBS.
Now you ready to trade futures. You are welcome to visit our platform! 😎
https://preview.redd.it/lxjvng9htex41.png?width=1200&format=png&auto=webp&s=5f411b5725f1528f8198726c993626e1f49de56a
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Bitcoin Halving & the Step to Maturation

Bitcoin Halving & the Step to Maturation
It’s about a week to the long-expected Bitcoin halving.
You can easily find a counting down page by visiting the website of any exchange, online magazine or data aggregator. Yes — everybody is waiting for it.

Source: Bitcoin Block Half
It’s an event that brings both predictability and uncertainty.

What is Predictable?

Bitcoin was designed as a deflationary currency with a 21 million fixed supply, like gold. Over time, the issuance of bitcoins will decrease and thus become scarcer.
When it was first created, 50 Bitcoins per block were given as a reward to the miners. After every 210,000 blocks are mined (approximately every 4 years), the block reward halves and will keep on halving until the block reward per block becomes 0 (approximately by year 2140).
At about 06:18 UTC on May 12, 2020 (as of writing), the block rewards of Bitcoin will drop from 12.5 BTC to 6.25 BTC.

What is Uncertain?


Source: https://www.bitcoinblockhalf.com/
As is shown in this chart, we can note a significant price jump after each halving.
But will this time turn out to be a different story when both the stock market and the crypto market are much more volatile than usual due to the global COVID-19 pandemic?
The past few months saw a big shakeout in the crypto market due to the coronavirus pandemic and its aftermath. On March 12, the Bitcoin price dumped 40% touching $3,800 within the day, marking a Black Thursday of the year.
The stock market went through a severe crash too. The US stock market triggered the “circuit breaker” four times within 10 days.
Just recently, the Bitcoin price soared above $9,000 and has now retraced to $8,864 at the time of writing, according to the statistics on CoinMarketCap.
Nobody knows for sure how things will be when the halving happens. Will the Bitcoin price be even more volatile or will it stabilize?

2020 Bitcoin Maturity Test

According to the Bloomberg Crypto Outlook (April 2020 Edition), the increasing futures open interest, declining volatility and relative outperformance despite the stock-market shakeout this year indicates Bitcoin is maturing from a speculative crypto asset toward a digital version of gold.

Increasing futures open interest


Source: skew
The number of Bitcoin futures contracts outstanding listed on the Chicago Mercantile Exchange (CME) has recovered significantly from the March lows, indicating a resurgence in institutions that want to buy the cryptocurrency. The high volume also represents taming of the highly speculative bull market.

Declining Volatility


Source: Bloomberg
This graphic shows that the correlation between Bitcoin and gold has jumped to the highest since 2010, twice that of equities, suggesting that Bitcoin is now divorcing equities and joining gold.

Bitcoin Outperformed Stock Market

Apart from that, Bitcoin is becoming less of a risk-on asset. In the first quarter of 2020, Bitcoin remained up about 9% when the S&P 500 showed a correction of 20%.

To Sum Up

2020 marks a key test for Bitcoin’s transition from speculative asset to the crypto market’s version of gold. We believe that the first-born crypto will pass the test to move towards a mature gold-like asset.
At Leverj, we are working actively on the decentralized derivatives market including Bitcoin perpetuals which is expected to be launched in a couple of months.
Visit live.leverj.io to enjoy our zero-fee trading for a limited period of time as of now. Follow us on Twitter or join our Telegram group to stay tuned for our updates.
Please keep in mind
US Persons are not allowed to trade on Leverj. Users from sanctioned countries or Specially Designated National (SDN) as per OFAC are also not allowed to use the system.
Before you trade, please make sure you are legally permitted to trade cryptocurrencies, derivatives, and any other instruments offered on this platform from your home jurisdiction.
Nothing in this article constitutes an offer, solicitation, or investment advise.
submitted by L_Xiaoqing to Leverj [link] [comments]

Bitcoin and cryptocurrency trading strategy in a panic on the coronavirus.

Bitcoin and cryptocurrency trading strategy in a panic on the coronavirus.
The upcoming problems with banks and the Fed’s money printing are excellent opportunities for cryptocurrencies and blockchain projects. Incredible events are taking place in the stock market, the fastest falling markets in history, the spread of coronavirus in the United States and the likely risk of falling consumer demand, lower consumption and, as a result, recession.
Analysis in such conditions becomes impossible, the position of traders is removed from the market. The Fed’s cash infusion is $ 1.5 trillion per month and the base rate is reduced, as a result, money is poured into the market in order to stop the market from falling, but this may not be enough.

Oil war

In addition, a trade oil war was added to the coronavirus, and this could cause serious problems for US shale oil companies, whose production costs are $ 30–40. The US oil sector is sitting on a wild leverage, and as a result, banks that lend to them can start problems. Thus, is it possible to say that this is perhaps the best moment for cryptocurrency projects that can be competitive in comparison with the banking sector? Well, we still have to find out.

The fall of Bitcoin and the entire cryptocurrency market

Bitcoin’s collapse was stronger than the stock market for several reasons. Well, firstly, the correlation between the S&P 500 index and Bitcoin reached 1. If earlier Bitcoin was associated as a protective asset and did not have a pronounced correlation, now all markets have started to fall during a mass panic. By the way, you can check the correlation of your crypto portfolio for free at Holderlab.io

Bitcoin and S&P500 correlation

The search for liquidity as the beginning of accelerating the fall of cryptocurrencies

The reasons for the strong current decline in the cryptocurrency market may be due to the fact that stock market traders were looking for liquidity in order to maintain margin requirements. In this case, liquidity was sought in risky assets, those Bitcoins and cryptocurrencies, perhaps some traders went completely into the dollar. This is where the first wave of decline in the cryptocurrency market began.

Bitmex Margin Trading

The incoming wave from the reduction of positions in Bitcoin from stock market traders has demolished the position of margin traders on Bitmex. As a result, $ 500 million in long positions were liquidated in an hour, and it remains to be seen how many were liquidated for other trading pairs.

BitMEX XBTUSD Liquidations data from skew.com
As a result, we saw a drop up to $ 3800. A great lesson for those who trade with leverage.
Another curious fact is that cryptocurrency exchanges do not have mechanisms to stop trading, as we saw in the stock markets when there was a limit down on S&P500.

Trading Bitcoin Futures on CME

In anticipation of the elimination of margin positions on Bitmex and other crypto exchanges. Starting February 25, there was an active closing of long positions in Bitcoin futures and opening short positions on the Chicago Mercantile Exchange. Which also influenced the fall of bitcoin as a whole. Cryptocurrency exchange margin traders have become a blast wave for the fall of Bitcoin.

Cryptocurrency trading strategy in a panic situation

Already today cryptocurrencies are sold at a significant discount, but now we are forced to monitor the dynamics of the S & P500 index and the general news background, which can affect the price of Bitcoin. However, in our opinion, the best moment for the Bitcoin HODL is probably coming. Today we see a good discount before the upcoming halving.

Halving zone
Do not expect the best price, it is almost impossible to catch, if it is possible to place pending orders this is good, today you can slowly buy current prices.
Trade managing your risks and do not rely only on luck and leverage.
submitted by holderlab to Bitcoin [link] [comments]

Bakkt Opinion Piece

Bakkt opinion piece. In 3-6 months you will see in hindsight. you will say holy shit that was bullish. Short term who knows what happens to price, id argue the best strategy right now would be an aggressive DCA just in case it does have one more big leg down. Because Bakkt is physically Backed, and they are a multi-billion dollar dealing enterprise, i imagine their trading is going to have a strong effect on the market as it directly affects the supply (unlike CME). Ironically with CME, it wasn't popular to use until we bottomed and then all of a sudden some whale buys 80k contracts! Im sure its just a strange coincidence and convenience that all of a sudden futures were made available at 2017 peak, get barely used, and then a huge order comes in at the very bottom.
With Bakkt, thing is Bitcoin is less than a 300 billion MC. That's really small compared to the massive amount of money / connections the NYSE has. As well, soon you will have ErisX which is the Nasdaq version. Bottom line is these legacy wall street titan companies want to have a better control of the Supply, and thus will weed out any bullshit exchanges that can manipulate. NYSE wants to manipulate LOL, but i bet there is also some truth to it and they sincerely see the need/demand/business opportunity to create a trusted platform for a burgeoning new asset class. This is what ICE did for the energy markets, and if history is any guide, Bitcoin will become huge. I don't see how there can be any other way. There will now be a compliant trusted way for the biggest money to participate in the bitcoin economy and first things first is they have to establish positions. Once the MC of bitcoin is much higher , the booms and bust will be less, Bitcoin will in fact become "Tame." But the ppl with the foresight , long term vision and balls accumulating now and/or have been holding for years will get the biggest reward. I don't see any other way for this to unfold. Ive always said Bitcoin is a prophecy , and ppl of course balk at me, but this news and future news will be ironic coincidences' that power Bitcoin to the Moon (Ethereum will also make it to moon).
submitted by JohnnyLingoMusic to BitcoinMarkets [link] [comments]

CME seeks to double monthly BTC futures limit

What i don't understand is this. 100 million in BTC is a shit ton, and via CME you can soon bet that much and never ever touch actual Bitcoin. I just don't get how this is legal or a good thing. I mean, betting 100mil on Bitcoin but never buying any via the Spot market, like wtf. Why would anybody use cash settled when there are plenty of options to trade futures using physical bitcoin

https://www.coindesk.com/cme-seeks-to-double-monthly-bitcoin-futures-trading-limit-to-10k-btc
submitted by JohnnyLingoMusic to BitcoinMarkets [link] [comments]

Weekly Wrap 13/03

Market News
The ripple effects of Coronavirus continued to cause a financial market bloodbath as some markets experienced their worst day since 1987. Bitcoin followed by tanking 60% to lows of around $3600 on some exchanges, its largest ever sell-off in USD terms. The leading digital asset shed $70 billion of its market cap in 24 hours. It was also Ethereum’s worst day in history as it lost over 40% in value.
While many are doubting if cryptoassets can continue to be classified as a non-correlated asset class, it is worth noting that even the safe haven asset Gold has been losing value since last week. It is expected that in times of market decline and global recession that people will pull back their investments overall, including riskier cryptoassets.
For now, Bitcoin seems to be hovering around the $5000 area but buy-volumes are low as investors appear scared to enter considering overall market uncertainty. It is worth noting that C10 has performed well relative to individual cryptoassets and the cash hedge has once again proven to be effective at preserving capital during times of market downturn.
Industry News
Special Annoucement: Message from CEO, Daniel Schwartzkopff:
In light of the escalating COVID-19 pandemic, I wanted to personally engage with you to let you know what steps we are taking in response to this mounting crisis.
Invictus Capital employees are working remotely when/where possible on governmental advice to practice social distancing and flatten the growth curve of the virus. Flattening the curve allows for the healthcare system to better cope with the critically ill over a longer period of time. Based on our research and discussions with medical professionals, greater than 50% of the population will contract the virus and it will eventually become seasonal in nature. This is currently primarily of concern to the elderly, the immunocompromised and those with pre-existing medical conditions.
All markets will be adversely affected perhaps foreseeably until the end of 2020 as global supply chains kick back into gear after lengthy periods of containment and quarantine. We are in regular contact with all our portfolio companies to see if/how they will be affected and are taking all measures possible to assist - currently minimal disruption is expected as tech companies adapt very easily to remote work. We are some of the fortunate ones as many industries will face severe economic hardship over the coming months - events, entertainment, travel and hospitality being some of the worst affected.
One of the benefits of being a natively digital platform is that a quarantine will have almost no effect on our ability to keep building and operating. I would like to highlight the success of our C10 fund’s cash hedging function in preserving value as it was almost entirely out of the market at the time of the recent collapse.
We are here with you and will keep you updated on any major market developments. The team is always available on Discord if you would like to speak to us directly. Please keep safe and take all relevant advised precautions.
Other News
submitted by Camaa to cryptotwenty [link] [comments]

Weekly Wrap 13/03

Market News
The ripple effects of Coronavirus continued to cause a financial market bloodbath as some markets experienced their worst day since 1987. Bitcoin followed by tanking 60% to lows of around $3600 on some exchanges, its largest ever sell-off in USD terms. The leading digital asset shed $70 billion of its market cap in 24 hours. It was also Ethereum’s worst day in history as it lost over 40% in value.
While many are doubting if cryptoassets can continue to be classified as a non-correlated asset class, it is worth noting that even the safe haven asset Gold has been losing value since last week. It is expected that in times of market decline and global recession that people will pull back their investments overall, including riskier cryptoassets.
For now, Bitcoin seems to be hovering around the $5000 area but buy-volumes are low as investors appear scared to enter considering overall market uncertainty. It is worth noting that C10 has performed well relative to individual cryptoassets and the cash hedge has once again proven to be effective at preserving capital during times of market downturn.
Industry News
Special Annoucement: Message from CEO, Daniel Schwartzkopff:
In light of the escalating COVID-19 pandemic, I wanted to personally engage with you to let you know what steps we are taking in response to this mounting crisis.
Invictus Capital employees are working remotely when/where possible on governmental advice to practice social distancing and flatten the growth curve of the virus. Flattening the curve allows for the healthcare system to better cope with the critically ill over a longer period of time. Based on our research and discussions with medical professionals, greater than 50% of the population will contract the virus and it will eventually become seasonal in nature. This is currently primarily of concern to the elderly, the immunocompromised and those with pre-existing medical conditions.
All markets will be adversely affected perhaps foreseeably until the end of 2020 as global supply chains kick back into gear after lengthy periods of containment and quarantine. We are in regular contact with all our portfolio companies to see if/how they will be affected and are taking all measures possible to assist - currently minimal disruption is expected as tech companies adapt very easily to remote work. We are some of the fortunate ones as many industries will face severe economic hardship over the coming months - events, entertainment, travel and hospitality being some of the worst affected.
One of the benefits of being a natively digital platform is that a quarantine will have almost no effect on our ability to keep building and operating. I would like to highlight the success of our C10 fund’s cash hedging function in preserving value as it was almost entirely out of the market at the time of the recent collapse.
We are here with you and will keep you updated on any major market developments. The team is always available on Discord if you would like to speak to us directly. Please keep safe and take all relevant advised precautions.
Other News
submitted by Camaa to InvictusCapital [link] [comments]

[HELP] Bitcoin Futures Trading

Hi all.
I have been trading bitcoin with Bitfinex for 2 years now. I recently made a TD Ameritrade account and downloaded the Think Or Swim Client because I would like to switch to trading CME Bitcoin futures for the simple sake that I don't trust the crypto exchanges with a large sum of money.
From what I understand, one contract is equal to 5 BTC. On simulated trading, I shorted one contract at 9040. Why does it say my buying power effect is $18611? I thought one contract was equal to 5 BTC which at 9040 is 45,200.
What I want to do is I want to open short bitcoin with no leverage. Similar to 1x leverage on Bitfinex. I don't understand how TD Ameritrade does this.
submitted by dosel112132131 to thinkorswim [link] [comments]

03-11 16:45 - 'Coinburrow perpetual Algo Launched' (self.Bitcoin) by /u/Material_Brick removed from /r/Bitcoin within 163-173min

'''
The Australia-based exchange said Wednesday in a blog post that its new “Perpetual Algo” feature provides leverage up to three times or "3x" for individual investors in 30 countries and 23 U.S. states, including the lucrative New York market. The leverage is also available to institutional traders in 44 states and Twenty Five countries.
The 3x leverage matches C’oinBurrow’s previous margin offering from 2017. CoinBurrow, led by Analyst Allyssa Sosa, briefly offered margin trading at the time, but suspended the service later in the year. Executives had been signaling since early 2019 that they were considering reviving the effort.
The resurgent push by Coinburrow comes as competition heats up among the world’s crypto exchanges, and the biggest players are scrambling to attract customers and transaction volumes with new digital-token listings and features like better trading technology, more leverage and more-secure custody options.
“Perpetual Algo” has been one of our most requested features," Coinburrow said in the blog post.
Several big non-U.S.-based exchanges, including Binance, BitMEX and Deribit, offer leverage of 100 times or more on futures contracts and other derivatives, but many of those offerings are off-limits to American customers. While U.S. traders can get leverage to buy regulated bitcoin futures contracts on the CME and Intercontinental Exchange’s Bakkt division, those venues require special accounts to trade commodities.
Leverage is considered risky in trading because it boosts the chances of losses alongside the enhanced potential for gains.
In an example of how Coinburrow’s new offering will work, traders could put $2999 down and continue up to $10000 of bitcoin from the exchange for trading with bitcoin perpetual Algo, increasing the potential size of the bet to x2-x3 worth of bitcoin. If bitcoin’s price climbs by 33 percent, traders would double their original investment.
In the blog post, Coinburrow said the perpetual funds can be used to trade other cryptocurrencies, in addition to tripling-down on a single digital asset like bitcoin: " If deployed as part of a responsible trading strategy perpetual trading algo doesn’t just increase your position in a specific trade but can also help diversify your portfolio, allowing you to hedge or arbitrage across multiple positions without depositing additional capital."
Coinburrow is notable because it is one of only a few big cryptocurrency exchanges based in Australia., submitting to the nation’s strict regulations in exchange for access to customers from the world’s largest economy. Started in the early years of the crypto industry in 2017, Coinburrow has long been used by cryptocurrency newcomers as an “on-ramp” into bitcoin and other digital assets from dollars and other government-issued money. The company now claims to have more than 30 thousand users.
[EARN FROM THE NEW INNOVATION ( COINBURROW.]1 . )
With coinburrow you can mine various kind of cryptocurrency based on what you are familiar with and how much you can afford, Also it based on how long you want the investment span to be.. You can invest $2999 and earn unto $5000 over a period of 55 days¦ You can also invest in the Bitcoin perpetual Algo, where you can earn over a period a year or 2 years.. [Cloud Mining I Crypto Investment]2 COINBURROW Can help you build your wealth while you continue with your day to day earnings.
'''
Coinburrow perpetual Algo Launched
Go1dfish undelete link
unreddit undelete link
Author: Material_Brick
1: c*inb*rro*.ne*/ 2: coin**rr*w.n*t/
Unknown links are censored to prevent spreading illicit content.
submitted by removalbot to removalbot [link] [comments]

BitOffer Institute: Parse of Bitcoin Options by Lucian, Chief Analyst

BitOffer Institute: Parse of Bitcoin Options by Lucian, Chief Analyst

https://preview.redd.it/97g8khceloh41.png?width=1501&format=png&auto=webp&s=2949f176163b5559dd487efe77891a6877fbe0d2
The last October, BitOffer officially launched Bitcoin Options, which was the first intraday Bitcoin Options that requires 0 fees, 0 margins, and no exercise, and be able to reach 2,000X leverage. The most significant feature of BitOffer Bitcoin Options is that the investors are enabled to earn a thousand times payoff whether the bull market or bear market. The purpose of launching Bitcoin Options is to provide investors an accurate hedge tool and an extra trading product. It is worth mentioning the price index of BitOffer Bitcoin Options is a weighted average of bitcoin prices from selected exchanges( Including:Kraken,Bitstamp,Coinbase,Bitfinex,Huobi,Binance,OKEX) with significant trading volumes, which makes it fair and transparent.
Q: What is Bitcoin Options?
Lucian: Bitcoin Options is a prediction of the movement of Bitcoins in the future. Essentially, it operates like the spot trading, but it allows the investors to buy call or put: Call when the investors expect the market to be bullish, Put when the investors expect the market to be bearish. Its profit formula is the same as that of the spot trading: Within the Options contract period, the investors would earn the price spread if the investors choose the correct direction. In short, BitOffer Bitcoin Options allows the investors to use a small budget to bet the change of the Bitcoins in the future and earn a considerable profit.
Q: How do we trade Bitcoin Options?
Lucian: BitOffer Bitcoin Options supports 2-mins, 5-mins, 1-hour, 4-hours, 12-hours, 1-day and 7-day contract period for investors to choose.
For example, the Bitcoin price now is $10,000, and you hold the view that the Bitcoin price will rise in an hour, then you buy a 1-hour call options contract with $10. After then, the Bitcoin price rises by $500 in an hour, you will earn $500 as profit when the contract settled, which means that you will earn a 50 times payoff as a return.
Q: Is Bitcoin Options the best hedge tool ever?
Lucian: BitOffer Bitcoin Options, the most innovative Bitcoin Options, is the best hedge tool ever for Bitcoin trading on the spot trading.
Then, how do the investors hedge their Bitcoin trading from the risk of the Bitcoin prices decreases?
For example, now the Bitcoin price is $10,000. When it rises to $11,000, the profit will be $1,000.
However, what if it falls to $9,000? If you do not hedge your Bitcoin trading, you would directly lose $1,000.
If you hedge your Bitcoin trading by buying a put options contract with $10, when the Bitcoin price drops from $10,000 to $9,000, you would earn $1,000 from the put options contract. Thus, your $1,000 loss on the spot trading would be hedged. This is how Bitcoin Options attracts investors.
Q: Which exchanges offer Bitcoin Options?
Lucian: There are few exchanges that offer Bitcoin Options now. Only BAKKT, CME, BitOffer, Binance JEX, OKEx, etc. do, but except BitOffer, the Bitcoin Options offered by the others belong to European Options, which means investors need to buy a whole Bitcoin, otherwise, they will only be able to give it up and lose the options premium. However, BitOffer Bitcoin Options is much simpler due to its features of 0 margins, 0 fees, and no exercise requirement.
Q: For newbies, which is much more suitable? Options trading or spot trading?
Lucian: The essences of Bitcoin Options and the spot trading are the same because a Bitcoin Options contract equals to the right of holding a Bitcoin.
We can make a simple comparison of Bitcoin Options and the spot trading:
When the Bitcoin price is $10,000,
  1. Buying a Bitcoin needs $10,000;
  2. Buying a Bitcoin Options contract needs a minimum of $5.
If the Bitcoin price rises from $10,000 to $10,500, you would earn $500 in both.
The payoff of these two is the same, but the budgets have a 200-fold difference.
On the contrary, when the Bitcoin price falls, if you predict the wrong direction, your largest loss in Bitcoin Options will only be the premium of your Bitcoin Options contract, which means you will only lose $5. The payoffs of the spot trading and Bitcoin Options are the same, but the budget of investing in Bitcoin Options is much lower, which makes the risk become lower.
Q: Are investors able to experience Bitcoin Options for free?
Lucian: For now, BitOffer is holding campaigns for Bitcoin Options, the date of the campaign now is 2020.2.14 09:00 to 2020.2.28 09:00 (UTC+8). In this period, new registrations on BitOffer will receive 50 USDT on their bonus account to experience Bitcoin Options for free. Moreover, the 50 USDT for experiencing Bitcoin Options is allowed to withdraw after applying.

https://preview.redd.it/q4vo83ikloh41.png?width=1456&format=png&auto=webp&s=4f5a686240a954b61f9e605f3c814a988c74ab9d
submitted by Bitoffer_Official to BitOffer_Official [link] [comments]

BitOffer Institution: Truth behind 0 Volume on BAKKT Bitcoin Options

BitOffer Institution: Truth behind 0 Volume on BAKKT Bitcoin Options
https://preview.redd.it/d8bcgjneohe41.png?width=740&format=png&auto=webp&s=8c89ee1d90a2146163111d34c4e8ef170421c0ff
Since 2019, bitcoin derivatives trading has developed rapidly, especially Bitcoin Futures whose trading volume is much more than that of the spot trading. It can be seen how big the market demand for derivatives is! Although futures trading is in full swing, but futures is not available to meet the market demand. Since the second half of 2019, various platforms have launched bitcoin options trading, including BitOffer, BAKKT, CME, OKEX and so on.
On December 9, 2019, BAKKT officially launched bitcoin options. The market initially gave high hopes to BAKKT and believed that its strong background would bring good performance. However, in the past 10 days, the volume of Bitcoin Options on BAKKT remained 0. According to the data, the number of the options transactions between January 20 and 24 was zero, so the last recorded activity happened on January 17 which has 20 bitcoin options trading volume.
Its competitor, CME Group, has made a good performance in the options trading. In the first week of trading, CME BTC options volume boosted from 55 contracts (about $2.37 million) to 120 contracts (about $5.25 million). Overall, investor interest in its products appears to be weakened, either BAKKT or CME which registered just 59 bitcoin options transactions last week.
The biggest reason why BAKKT options trading has not been popular is that there is no market maker, which means that options trading liquidity on the exchange is not smooth. Without a good market-making mechanism, no one wants to make a market for BAKKT. Not only BAKKT but also bitcoin options launched by CME, OKEX, and JEX are also short of liquidity. If there is no liquidity in a trading market, it is conceivable that how high is its risk? Therefore, they are destined to be weeded out by the market.
Besides the liquidity, they also have a serious problem that their bitcoin options are European options, which means the options contracts can only be exercised on the expiration date. Obviously, it does 0 benefits to normal investors, because most investors do not have so much spare money to exercise the options. However, there is only one bitcoin options exchange in the world that does not require investors to exercise the options contracts, BitOffer.
In addition, it is the first exchange that supports Day-Options with the features of 0 Fees and 0 Margins. BitOffer Bitcoin Options supports the time lengths in 2-mins, 5-mins, 1-hour, 4-hours, 12-hours, 1-day and 7-day, which means that it can satisfy different demands of the investors. Investors will be available to trade Bitcoin Options anytime and anywhere, which is more flexible and convenient. The biggest characteristic of the BitOffer Bitcoin option is that whether the bull market or bear market, investors own the opportunity to earn 1,000X leveraged payoff.
How to trade BitOffer bitcoin options?
In some ways, Trading Bitcoin Options is similar to trading bitcoins on the spot trading market. Both needs investors to predict the bitcoin price in the future, but Options trading supports investor to long or short bitcoins: Buy call when you expect the bitcoin price to be bullish, but put when you expect the bitcoin price to be bearish. If investors buy call, investors would earn the price spread as profits when the bitcoin price rises; If investors buy put, investors would earn the price spread as profits when the bitcoin price drops. In short, investors will be able to earn a huge profit with a small budget in this way.
For example, the bitcoin price now is $9,000, you predict that the bitcoin price will probably rise in a week, then you buy a 7-days call options contract with $200. After a week, the bitcoin price rises by $2,000 (from $9,000 to $11,000), when your 7-days call options contract settled, you will earn $2,000-$200=$1,800 as a net profit, of which rate of return reaches 900%.
If the direction of the contract you buy is wrong, you would lose the premium you pay to buy the options contract. Therefore, we can conclude that Bitcoin Options is a trading with unlimited profit but limited risk. In other words, we can see that BitOffer Bitcoin Options is much more suitable for investors than the other Bitcoin Options which belong to the European Options.

https://preview.redd.it/h5evkjffohe41.png?width=1456&format=png&auto=webp&s=91873f5e8f10f54b9d2b150ea9e1655d658742db
submitted by Bitoffer_Official to BitOffer_Official [link] [comments]

Why Crypto Crashed Today

My thoughts on why the entire crypto market just tanked... (tl/dr)
The people behind B cash thought that this would be the perfect time to launch a full-scale and highly coordinated attack in it's never ending attempt to become 'the one true bitcoin'.
1) They had that idiot Swede from bitcoin.com come out and announce on every media outlet he was 'selling all his bitcoin, because it's useless'. 2) They then began a well orchestrated FUD campaign that included paid click-farm shills posting everywhere about how Bitcoin will crash there's is the better solution... 3) At the same time Roger, that idiot Swede and others from the Chinese mining groups who collectively hold hundreds of thousands (if not millions) of BTC began dumping just enough to steadily drop the price and reinforce their message... 4) Add in spamming the network with fake transactions to slow things even more...while shouting "See, we're right..."
....All timed to be within 24 hours of the Coinbase announcement.
Clearly a well planned power play and It was clearly successful... (sort of)
Roger Vers and the Swede and the Chinese miners? They all made a shit ton of money. Maybe you did too if you got out in time so who cares right?
You should care.... this past week was an important week for all crypto as it was the first week of real Wall Street money coming into the market with CME futures (5x bigger btw then CBOE). It was widely known that many investors would be waiting to see how things went, to see if it was too volatile, too manipulated... And guess fucking what?
Today Ally Financial announced it has changed it's mind and won't allow its 1m+ customers to trade Bitcoin futures.... people are reading about how corrupt the crypto space is with the Coinbase insider trading scandal... and tomorrow morning they will all wake up to read about how it crashed... And they won't seperate out one coin from another... to them it's all the same and Bitcoin is the leader.
So... the truth is we will recover but make no mistake, the bullshit greed war that Roger the fucking felon started has set back the entire market as the 'institutional money; we all hoped would flood in is now saying "No fucking way"... That and the Roger cartel dumping of BTC in an attempt to get it closer in market share is why we are tanking.
Now go on, flame me back... I expect it..I'm happy to provide references to all of the above (or you can google it yourself).
So realize this.. the threat to crypto is not just from governments or Wall Street or some hacker stealing your shit, it's from greed. Greed from within...
Or maybe not. What the fuck do I know :)
submitted by bitradr to Bitcoin [link] [comments]

The Effect of American Regulators On The Market

I' m arguing that the effect of America on the market has largely been negative. I believe that the US was responsible for the 2017 crash, that they were responsible for creating the FATF regulations for banking secrecy, and they are deliberately enabling rehypthecation via the CME. They have driven the market abroad, stifled innovation, and are actively seeking to strip US customers of options and choices and leverage, working to shut down our access to global markets. They are enabling the rich consolidated wealth of banking institutions and silicon valley to have the entire say in the matter.
The goals of FATF are ultimately dangerous to the network itself, as the US is implying that it will resort to threatening the network by whatever means necessary and effectively breaking bitcoin, in order to achieve its travel rule.
This has led to an extended bear market, as we now realize that the price increase in May and June was likely only related to a chinese ponzi called PlusToken. The rest of the market implies an extreme lack of retail interest. The mainstream adoption we want is literally being held off and regulated into submission by insiders on wallstreet working with the SEC and CFTC and CME.

The trading action and price action of bitcoin has slowly become egregious over the last 18 months. The CME boys are literally able to drop the market 6% in two 1 minute candles at this point. That's how bad the market is, that's how non existant retail and healthy diverse participation and organic movement in the market is, and it's the same volatility these alphabet agencies cite as an excuse to deny the ETF, yet it's the CME and they who are most responsibile, and it is not volatility. A market that does not move, is not responsive to algos that work in every legacy finance market, and is only able to bart simpson up and down when the CME institution managers decide they want to do it, is not a healthy market.
There is no FUTURE in centralized exchanges. The US is trying to control volume of BTC with institutional paper fraud BTC that isn't physically settled. This is explicitly because retail uses centralized exchanges globally. The moment we as a community put all the volume on DEX's, they lose this power. This shit has to stop.
submitted by samdane7777 to Bitcoin [link] [comments]

Beginner’s Guide to BitMEX

Beginner’s Guide to BitMEX

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Founded by HDR Global Trading Limited (which in turn was founded by former bankers Arthur Hayes, Samuel Reed and Ben Delo) in 2014, BitMEX is a trading platform operating around the world and registered in the Seychelles.
Meaning Bitcoin Mercantile Exchange, BitMEX is one of the largest Bitcoin trading platforms currently operating, with a daily trading volume of over 35,000 BTC and over 540,000 accesses monthly and a trading history of over $34 billion worth of Bitcoin since its inception.

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Unlike many other trading exchanges, BitMEX only accepts deposits through Bitcoin, which can then be used to purchase a variety of other cryptocurrencies. BitMEX specialises in sophisticated financial operations such as margin trading, which is trading with leverage. Like many of the exchanges that operate through cryptocurrencies, BitMEX is currently unregulated in any jurisdiction.
Visit BitMEX

How to Sign Up to BitMEX

In order to create an account on BitMEX, users first have to register with the website. Registration only requires an email address, the email address must be a genuine address as users will receive an email to confirm registration in order to verify the account. Once users are registered, there are no trading limits. Traders must be at least 18 years of age to sign up.
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However, it should be noted that BitMEX does not accept any US-based traders and will use IP checks to verify that users are not in the US. While some US users have bypassed this with the use of a VPN, it is not recommended that US individuals sign up to the BitMEX service, especially given the fact that alternative exchanges are available to service US customers that function within the US legal framework.
How to Use BitMEX
BitMEX allows users to trade cryptocurrencies against a number of fiat currencies, namely the US Dollar, the Japanese Yen and the Chinese Yuan. BitMEX allows users to trade a number of different cryptocurrencies, namely Bitcoin, Bitcoin Cash, Dash, Ethereum, Ethereum Classic, Litecoin, Monero, Ripple, Tezos and Zcash.
The trading platform on BitMEX is very intuitive and easy to use for those familiar with similar markets. However, it is not for the beginner. The interface does look a little dated when compared to newer exchanges like Binance and Kucoin’s.
Once users have signed up to the platform, they should click on Trade, and all the trading instruments will be displayed beneath.
Clicking on the particular instrument opens the orderbook, recent trades, and the order slip on the left. The order book shows three columns – the bid value for the underlying asset, the quantity of the order, and the total USD value of all orders, both short and long.
The widgets on the trading platform can be changed according to the user’s viewing preferences, allowing users to have full control on what is displayed. It also has a built in feature that provides for TradingView charting. This offers a wide range of charting tool and is considered to be an improvement on many of the offering available from many of its competitors.
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Once trades are made, all orders can be easily viewed in the trading platform interface. There are tabs where users can select their Active Orders, see the Stops that are in place, check the Orders Filled (total or partially) and the trade history. On the Active Orders and Stops tabs, traders can cancel any order, by clicking the “Cancel” button. Users also see all currently open positions, with an analysis if it is in the black or red.
BitMEX uses a method called auto-deleveraging which BitMEX uses to ensure that liquidated positions are able to be closed even in a volatile market. Auto-deleveraging means that if a position bankrupts without available liquidity, the positive side of the position deleverages, in order of profitability and leverage, the highest leveraged position first in queue. Traders are always shown where they sit in the auto-deleveraging queue, if such is needed.
Although the BitMEX platform is optimized for mobile, it only has an Android app (which is not official). There is no iOS app available at present. However, it is recommended that users use it on the desktop if possible.
BitMEX offers a variety of order types for users:
  • Limit Order (the order is fulfilled if the given price is achieved);
  • Market Order (the order is executed at current market price);
  • Stop Limit Order (like a stop order, but allows users to set the price of the Order once the Stop Price is triggered);
  • Stop Market Order (this is a stop order that does not enter the order book, remain unseen until the market reaches the trigger);
  • Trailing Stop Order (it is similar to a Stop Market order, but here users set a trailing value that is used to place the market order);
  • Take Profit Limit Order (this can be used, similarly to a Stop Order, to set a target price on a position. In this case, it is in respect of making gains, rather than cutting losses);
  • Take Profit Market Order (same as the previous type, but in this case, the order triggered will be a market order, and not a limit one)
The exchange offers margin trading in all of the cryptocurrencies displayed on the website. It also offers to trade with futures and derivatives – swaps.

Futures and Swaps

A futures contract is an agreement to buy or sell a given asset in the future at a predetermined price. On BitMEX, users can leverage up to 100x on certain contracts.
Perpetual swaps are similar to futures, except that there is no expiry date for them and no settlement. Additionally, they trade close to the underlying reference Index Price, unlike futures, which may diverge substantially from the Index Price.
BitMEX also offers Binary series contracts, which are prediction-based contracts which can only settle at either 0 or 100. In essence, the Binary series contracts are a more complicated way of making a bet on a given event.
The only Binary series betting instrument currently available is related to the next 1mb block on the Bitcoin blockchain. Binary series contracts are traded with no leverage, a 0% maker fee, a 0.25% taker fee and 0.25% settlement fee.

Bitmex Leverage

BitMEX allows its traders to leverage their position on the platform. Leverage is the ability to place orders that are bigger than the users’ existing balance. This could lead to a higher profit in comparison when placing an order with only the wallet balance. Trading in such conditions is called “Margin Trading.”
There are two types of Margin Trading: Isolated and Cross-Margin. The former allows the user to select the amount of money in their wallet that should be used to hold their position after an order is placed. However, the latter provides that all of the money in the users’ wallet can be used to hold their position, and therefore should be treated with extreme caution.
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The BitMEX platform allows users to set their leverage level by using the leverage slider. A maximum leverage of 1:100 is available (on Bitcoin and Bitcoin Cash). This is quite a high level of leverage for cryptocurrencies, with the average offered by other exchanges rarely exceeding 1:20.

BitMEX Fees

For traditional futures trading, BitMEX has a straightforward fee schedule. As noted, in terms of leverage offered, BitMEX offers up to 100% leverage, with the amount off leverage varying from product to product.
However, it should be noted that trading at the highest leverages is sophisticated and is intended for professional investors that are familiar with speculative trading. The fees and leverage are as follows:
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However, there are additional fees for hidden / iceberg orders. A hidden order pays the taker fee until the entire hidden quantity is completely executed. Then, the order will become normal, and the user will receive the maker rebate for the non-hidden amount.

Deposits and Withdrawals

BitMEX does not charge fees on deposits or withdrawals. However, when withdrawing Bitcoin, the minimum Network fee is based on blockchain load. The only costs therefore are those of the banks or the cryptocurrency networks.
As noted previously, BitMEX only accepts deposits in Bitcoin and therefore Bitcoin serves as collateral on trading contracts, regardless of whether or not the trade involves Bitcoin.
The minimum deposit is 0.001 BTC. There are no limits on withdrawals, but withdrawals can also be in Bitcoin only. To make a withdrawal, all that users need to do is insert the amount to withdraw and the wallet address to complete the transfer.
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Deposits can be made 24/7 but withdrawals are processed by hand at a recurring time once per day. The hand processed withdrawals are intended to increase the security levels of users’ funds by providing extra time (and email notice) to cancel any fraudulent withdrawal requests, as well as bypassing the use of automated systems & hot wallets which may be more prone to compromise.

Supported Currencies

BitMEX operates as a crypto to crypto exchange and makes use of a Bitcoin-in/Bitcoin-out structure. Therefore, platform users are currently unable to use fiat currencies for any payments or transfers, however, a plus side of this is that there are no limits for trading and the exchange incorporates trading pairs linked to the US Dollar (XBT), Japanese Yen (XBJ), and Chinese Yuan (XBC).
BitMEX supports the following cryptocurrencies:
  • Bitcoin (XBT)
  • Bitcoin Cash (BCH)
  • Ethereum (ETH)
  • Ethereum Classic (ETC)
  • Litecoin (LTC)
  • Ripple Token (XRP)
  • Monero (XMR)
  • Dash (DASH)
  • Zcash (ZEC)
  • Cardano (ADA)
  • Tron (TRX)
  • EOS Token (EOS)
BitMEX also offers leverage options on the following coins:
  • 5x: Zcash (ZEC)
  • 20x : Ripple (XRP),Bitcoin Cash (BCH), Cardano (ADA), EOS Token (EOS), Tron (TRX)
  • 25x: Monero (XMR)
  • 33x: Litecoin (LTC)
  • 50x: Ethereum (ETH)
  • 100x: Bitcoin (XBT), Bitcoin / Yen (XBJ), Bitcoin / Yuan (XBC)

Trading Technologies International Partnership

HDR Global Trading, the company which owns BitMEX, has recently announced a partnership with Trading Technologies International, Inc. (TT), a leading international high-performance trading software provider.
The TT platform is designed specifically for professional traders, brokers, and market-access providers, and incorporates a wide variety of trading tools and analytical indicators that allow even the most advanced traders to customize the software to suit their unique trading styles. The TT platform also provides traders with global market access and trade execution through its privately managed infrastructure and the partnership will see BitMEX users gaining access to the trading tools on all BitMEX products, including the popular XBT/USD Perpetual Swap pairing.
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The BitMEX Insurance Fund

The ability to trade on leverage is one of the exchange’s main selling points and offering leverage and providing the opportunity for traders to trade against each other may result in a situation where the winners do not receive all of their expected profits. As a result of the amounts of leverage involved, it’s possible that the losers may not have enough margin in their positions to pay the winners.
Traditional exchanges like the Chicago Mercantile Exchange (CME) offset this problem by utilizing multiple layers of protection and cryptocurrency trading platforms offering leverage cannot currently match the levels of protection provided to winning traders.
In addition, cryptocurrency exchanges offering leveraged trades propose a capped downside and unlimited upside on a highly volatile asset with the caveat being that on occasion, there may not be enough funds in the system to pay out the winners.
To help solve this problem, BitMEX has developed an insurance fund system, and when a trader has an open leveraged position, their position is forcefully closed or liquidated when their maintenance margin is too low.
Here, a trader’s profit and loss does not reflect the actual price their position was closed on the market, and with BitMEX when a trader is liquidated, their equity associated with the position drops down to zero.
In the following example, the trader has taken a 100x long position. In the event that the mark price of Bitcoin falls to $3,980 (by 0.5%), then the position gets liquidated with the 100 Bitcoin position needing to be sold on the market.
This means that it does not matter what price this trade executes at, namely if it’s $3,995 or $3,000, as from the view of the liquidated trader, regardless of the price, they lose all the equity they had in their position, and lose the entire one Bitcoin.
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Assuming there is a fully liquid market, the bid/ask spread should be tighter than the maintenance margin. Here, liquidations manifest as contributions to the insurance fund (e.g. if the maintenance margin is 50bps, but the market is 1bp wide), and the insurance fund should rise by close to the same amount as the maintenance margin when a position is liquidated. In this scenario, as long as healthy liquid markets persist, the insurance fund should continue its steady growth.
The following graphs further illustrate the example, and in the first chart, market conditions are healthy with a narrow bid/ask spread (just $2) at the time of liquidation. Here, the closing trade occurs at a higher price than the bankruptcy price (the price where the margin balance is zero) and the insurance fund benefits.
Illustrative example of an insurance contribution – Long 100x with 1 BTC collateral
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(Note: The above illustration is based on opening a 100x long position at $4,000 per BTC and 1 Bitcoin of collateral. The illustration is an oversimplification and ignores factors such as fees and other adjustments.
The bid and offer prices represent the state of the order book at the time of liquidation. The closing trade price is $3,978, representing $1 of slippage compared to the $3,979 bid price at the time of liquidation.)
The second chart shows a wide bid/ask spread at the time of liquidation, here, the closing trade takes place at a lower price than the bankruptcy price, and the insurance fund is used to make sure that winning traders receive their expected profits.
This works to stabilize the potential for returns as there is no guarantee that healthy market conditions can continue, especially during periods of heightened price volatility. During these periods, it’s actually possible that the insurance fund can be used up than it is built up.
Illustrative example of an insurance depletion – Long 100x with 1 BTC collateral
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(Notes: The above illustration is based on opening a 100x long position at $4,000 per BTC and 1 Bitcoin of collateral. The illustration is an oversimplification and ignores factors such as fees and other adjustments.
The bid and offer prices represent the state of the order book at the time of liquidation. The closing trade price is $3,800, representing $20 of slippage compared to the $3,820 bid price at the time of liquidation.)
The exchange declared in February 2019, that the BitMEX insurance fund retained close to 21,000 Bitcoin (around $70 million based on Bitcoin spot prices at the time).
This figure represents just 0.007% of BitMEX’s notional annual trading volume, which has been quoted as being approximately $1 trillion. This is higher than the insurance funds as a proportion of trading volume of the CME, and therefore, winning traders on BitMEX are exposed to much larger risks than CME traders as:
  • BitMEX does not have clearing members with large balance sheets and traders are directly exposed to each other.
  • BitMEX does not demand payments from traders with negative account balances.
  • The underlying instruments on BitMEX are more volatile than the more traditional instruments available on CME.
Therefore, with the insurance fund remaining capitalized, the system effectively with participants who get liquidated paying for liquidations, or a losers pay for losers mechanism.
This system may appear controversial as first, though some may argue that there is a degree of uniformity to it. It’s also worth noting that the exchange also makes use of Auto Deleveraging which means that on occasion, leveraged positions in profit can still be reduced during certain time periods if a liquidated order cannot be executed in the market.
More adventurous traders should note that while the insurance fund holds 21,000 Bitcoin, worth approximately 0.1% of the total Bitcoin supply, BitMEX still doesn’t offer the same level of guarantees to winning traders that are provided by more traditional leveraged trading platforms.
Given the inherent volatility of the cryptocurrency market, there remains some possibility that the fund gets drained down to zero despite its current size. This may result in more successful traders lacking confidence in the platform and choosing to limit their exposure in the event of BitMEX being unable to compensate winning traders.

How suitable is BitMEX for Beginners?

BitMEX generates high Bitcoin trading levels, and also attracts good levels of volume across other crypto-to-crypto transfers. This helps to maintain a buzz around the exchange, and BitMEX also employs relatively low trading fees, and is available round the world (except to US inhabitants).
This helps to attract the attention of people new to the process of trading on leverage and when getting started on the platform there are 5 main navigation Tabs to get used to:
  • **Trade:**The trading dashboard of BitMEX. This tab allows you to select your preferred trading instrument, and choose leverage, as well as place and cancel orders. You can also see your position information and view key information in the contract details.
  • **Account:**Here, all your account information is displayed including available Bitcoin margin balances, deposits and withdrawals, and trade history.
  • **Contracts:**This tab covers further instrument information including funding history, contract sizes; leverage offered expiry, underlying reference Price Index data, and other key features.
  • **References:**This resource centre allows you to learn about futures, perpetual contracts, position marking, and liquidation.
  • **API:**From here you can set up an API connection with BitMEX, and utilize the REST API and WebSocket API.
BitMEX also employs 24/7 customer support and the team can also be contacted on their Twitter and Reddit accounts.
In addition, BitMEX provides a variety of educational resources including an FAQ section, Futures guides, Perpetual Contracts guides, and further resources in the “References” account tab.
For users looking for more in depth analysis, the BitMEX blog produces high level descriptions of a number of subjects and has garnered a good reputation among the cryptocurrency community.
Most importantly, the exchange also maintains a testnet platform, built on top of testnet Bitcoin, which allows anyone to try out programs and strategies before moving on to the live exchange.
This is crucial as despite the wealth of resources available, BitMEX is not really suitable for beginners, and margin trading, futures contracts and swaps are best left to experienced, professional or institutional traders.
Margin trading and choosing to engage in leveraged activity are risky processes and even more advanced traders can describe the process as a high risk and high reward “game”. New entrants to the sector should spend a considerable amount of time learning about margin trading and testing out strategies before considering whether to open a live account.

Is BitMEX Safe?

BitMEX is widely considered to have strong levels of security. The platform uses multi-signature deposits and withdrawal schemes which can only be used by BitMEX partners. BitMEX also utilises Amazon Web Services to protect the servers with text messages and two-factor authentication, as well as hardware tokens.
BitMEX also has a system for risk checks, which requires that the sum of all account holdings on the website must be zero. If it’s not, all trading is immediately halted. As noted previously, withdrawals are all individually hand-checked by employees, and private keys are never stored in the cloud. Deposit addresses are externally verified to make sure that they contain matching keys. If they do not, there is an immediate system shutdown.
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In addition, the BitMEX trading platform is written in kdb+, a database and toolset popular amongst major banks in high frequency trading applications. The BitMEX engine appears to be faster and more reliable than some of its competitors, such as Poloniex and Bittrex.
They have email notifications, and PGP encryption is used for all communication.
The exchange hasn’t been hacked in the past.

How Secure is the platform?

As previously mentioned, BitMEX is considered to be a safe exchange and incorporates a number of security protocols that are becoming standard among the sector’s leading exchanges. In addition to making use of Amazon Web Services’ cloud security, all the exchange’s systems can only be accessed after passing through multiple forms of authentication, and individual systems are only able to communicate with each other across approved and monitored channels.
Communication is also further secured as the exchange provides optional PGP encryption for all automated emails, and users can insert their PGP public key into the form inside their accounts.
Once set up, BitMEX will encrypt and sign all the automated emails sent by you or to your account by the [[email protected]](mailto:[email protected]) email address. Users can also initiate secure conversations with the support team by using the email address and public key on the Technical Contact, and the team have made their automated system’s PGP key available for verification in their Security Section.
The platform’s trading engine is written in kdb+, a database and toolset used by leading financial institutions in high-frequency trading applications, and the speed and reliability of the engine is also used to perform a full risk check after every order placement, trade, settlement, deposit, and withdrawal.
All accounts in the system must consistently sum to zero, and if this does not happen then trading on the platform is immediately halted for all users.
With regards to wallet security, BitMEX makes use of a multisignature deposit and withdrawal scheme, and all exchange addresses are multisignature by default with all storage being kept offline. Private keys are not stored on any cloud servers and deep cold storage is used for the majority of funds.
Furthermore, all deposit addresses sent by the BitMEX system are verified by an external service that works to ensure that they contain the keys controlled by the founders, and in the event that the public keys differ, the system is immediately shut down and trading halted. The exchange’s security practices also see that every withdrawal is audited by hand by a minimum of two employees before being sent out.

BitMEX Customer Support

The trading platform has a 24/7 support on multiple channels, including email, ticket systems and social media. The typical response time from the customer support team is about one hour, and feedback on the customer support generally suggest that the customer service responses are helpful and are not restricted to automated responses.
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The BitMEX also offers a knowledge base and FAQs which, although they are not necessarily always helpful, may assist and direct users towards the necessary channels to obtain assistance.
BitMEX also offers trading guides which can be accessed here

Conclusion

There would appear to be few complaints online about BitMEX, with most issues relating to technical matters or about the complexities of using the website. Older complaints also appeared to include issues relating to low liquidity, but this no longer appears to be an issue.
BitMEX is clearly not a platform that is not intended for the amateur investor. The interface is complex and therefore it can be very difficult for users to get used to the platform and to even navigate the website.
However, the platform does provide a wide range of tools and once users have experience of the platform they will appreciate the wide range of information that the platform provides.
Visit BitMEX
submitted by bitmex_register to u/bitmex_register [link] [comments]

The Bear Market: A Brief Thread

All credit goes to @TheCryptoFam's twitter thread, but I found it to be a great summary and wanted to share it with our community.
1) THE BITCOIN BEAR MARKET: A brief thread
https://imgur.com/DexgbyB
2) Bitcoin reached its all time high (ATH) on December 17th of 2017, the exact date that CME futures trading began. In retrospect, it is now obvious that smart/institutional money was stocking up before that date. Hindsight is 20/20.
https://imgur.com/ifJ335e
3) Since 12/17/17, Bitcoin has been in a bear market. The remainder of this analysis will focus on patterns observed during this market downturn, as well as signals for when it might come to an end.
https://imgur.com/BPu5mmj
4) The bear market has consisted of 3 major drives down, represented by black arrows in the chart below. We are currently in the midst of the 3rd drive down, awaiting a bottom. More on that later.
https://imgur.com/Wb8Q4xa
5) Each of these drives down have followed a very similar pattern. First, you see a fake-out dump (orange lines), then a failed rally (grey lines), then finally the major dump (blue lines).
https://imgur.com/vffEyu3
6) Within this pattern, there are important details. Each greater leg down is made on lower selling volume, marked by black lines at the bottom of the chart. This chart is a composite of the volume from Binance, Bitfinex, Bitstamp, and Coinbase.
https://imgur.com/EBvt8iX
7) Not only is selling volume lower, but the drops have been less severe. Each component of each leg down is less steep than the previous leg down. RSI, a momentum indicator, also shows selling has been less extreme. The trend is “flattening out”
https://imgur.com/lhPaubI
8) So what does this mean? In our opinion, the bear trend is running out of gas. Bears/whales/market makers held a great supply of BTC that they pumped until 12/17/17. As they sell BTC and drive price down, their share of the total market supply is decreasing.
https://imgur.com/EhoXGln
9) This is a very simplified explanation of how markets work. A great deal of the total BTC supply is not traded. Some is lost forever in idle or forgotten wallets. Other Bitcoin is hodled by strong hands who never sell. This gives MMs greater power with their share of BTC
https://imgur.com/kFG5Uh1
10) Now we can begin to understand why each leg down is less severe. Because MMs/whales hold less BTC at the start of each leg down, their power to lower the price with market sells is reduced.
https://imgur.com/yEv9dKK
11) All of these signs point to an imminent end to the trend. Bounces are not going as high, while bottoms are not as low. The black lines show this convergence. It is almost time for whales to begin accumulating their BTC again, rather than distributing/taking profits.
https://imgur.com/qoyPcVj
12) Again, this is a simplified explanation of how markets work, but it’s more useful than strictly following fundamentals or news intended to deceive. Hopefully the market patterns make more sense to you now. The chart says we’re almost ready to go up!
https://imgur.com/xCBVKVt
submitted by flsurf7 to CryptoCurrency [link] [comments]

Paper Bitcoins Have The Potential To Ruin The Bitcoin Market

Paper Bitcoins Have The Potential To Ruin The Bitcoin Market

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http://genesisblocknews.com/paper-bitcoins-have-the-potential-to-ruin-the-bitcoin-market/
Paper Bitcoins are becoming increasingly popular among institutional investors, and they have the potential to ruin the Bitcoin market. Paper Bitcoins are equivalent to printing Bitcoin, and perhaps the best example of paper Bitcoins are the Bitcoin futures on CME and CBoE in Chicago. Billions of USD is flowing through the Chicago Bitcoin futures markets, and these are all backed by cash and settled for cash, with no actual Bitcoins backing them. Therefore, any money invested into these Bitcoin futures is diverted away from the spot market, and therefore reduces Bitcoin’s spot demand and price long term. Further, paper Bitcoins inflate Bitcoin’s supply above 21 million coins, which is obviously quite bad for Bitcoin’s price.
The entire crypto space has been avid that a Bitcoin exchange traded fund (ETF) would have been an incredible thing for the market, and this was true for physically backed Bitcoin ETFs like VanEck SolidX and the Winklevoss Trust. However, a further 5-10 Bitcoin ETFs were proposed to the SEC that were cash settled and not backed by Bitcoins, and many of the crypto news sites failed to make the distinction between cash settled ETFs and physical ETFs, and acted as if the rejection of cash settled ETFs was bad news, when it was actually good news. If the first Bitcoin ETF that comes into existence is cash settled it would be a catastrophe. All of that money from institutional investors that the crypto markets have been waiting for would end up in the coffers of the company running the ETF, and theoretically would not increase Bitcoin’s price at all, no matter the volume of the ETF. Further, the paper Bitcoins printed for such an ETF would drastically increase Bitcoin’s supply and trash its price.
The point is, Bitcoiners need to investigate any sort of Bitcoin futures, ETF, or index fund thoroughly before getting excited about it. Financial instruments that are directly backed with Bitcoin are a good thing, but financial instruments backed with cash can do long term damage to the market.
The crypto space was rightfully excited about the launch of physical Bitcoin futures on Bakkt on 12 December 2018, but it was delayed until 24 January 2019 at the earliest. Something in the government is stopping physical Bitcoin futures, only leaving the cash settled futures in Chicago for the foreseeable future. Essentially, the government has approved the paper Bitcoins in Chicago, which reduce Bitcoin’s price long term by diverting demand and increasing supply, but are simultaneously disapproving of futures backed by actual Bitcoins.
GenesisBlockNews believes the government is not going to allow any sort of Bitcoin-backed financial instrument to be approved, since that would cause Bitcoin to gain too much value and threaten the USD’s dominance. The government will be happy to approve more paper Bitcoins though, since that undermines Bitcoin’s value. Therefore, crypto enthusiasts need to be very careful to do research before getting excited about any newly approved Bitcoin financial instrument in the future, since it will very likely be paper Bitcoins.
One does not have to look further than the gold market to see the end result of printing paper assets. Gold is one of the few things in the world that can be used as a currency and gain value long term relative to inflationary fiats, IF there were not tremendous paper markets. The price of gold has been falling since the middle of 2011, from USD 1,900 to near USD 1,200 currently. This is due to the saturation of the gold market with paper gold on the COMEX futures exchange; note this is CME, the same exchange issuing unlimited amounts of paper Bitcoin! There is 360 times more paper gold printed than the physical gold backing the contracts.
Massive amounts of gold can be printed at will by COMEX, as if it was paper money, and this has prevented the gold industry from being a serious threat to the USD. This is why the government allows this, even though it is tantamount to stealing from all the people who hold gold in the world.
CME, once again the same people that have ruined the gold market via COMEX, now has permission to print as much Bitcoin as it wants. Bitcoin Futures on CME launched on 17 December 2017, the very same day Bitcoin’s price began to crash from its peak near USD 20,000. It is quite obvious that the launch of Bitcoin futures on CME was a coordinated attempt to ruin the price of Bitcoin. CME has been printing Bitcoin at will, and stealing from everyone else in the world that holds Bitcoin.
One more note, do not be surprised if when Bakkt’s Bitcoin futures finally come, that they are cash settled futures. Bitcoiners will need to read the fine print.
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How to trade bitcoin futures contracts on Bitmex Bitcoin Futures Explained! (CME, CBOE & NASDAQ) How Bitcoin Futures Will Affect Price CME Futures & Day Trading! Bitcoin basics : how Bitcoin futures work - YouTube

Hear from active traders about their experience adding CME Group futures and options on futures to their portfolio. how to trade futures and what steps you should take to get started. Create a CMEGroup.com Account: More features, more insights Manage bitcoin market volatility with new Bitcoin futures. Trading times for bitcoin futures, which can be found on the CME, the CME Globex and the CME ClearPort trading platforms are from 5 p.m. until 4 p.m. CST Sunday through Friday. CME options on bitcoin futures give the buyer of a call/put the right to buy/sell one bitcoin futures contract at a specified strike price at some future date. Upon termination of trading, in-the-money options, expire into 1 bitcoin futures contract which immediately cash settles to the CME CF Bitcoin Reference Rate (BRR). CME Bitcoin futures gap: Well, Bitcoin (BTC) is being traded 24/7 on majority of crypto exchanges, but not on CME. Bitcoin does not trade during weekends on CME and this causes gap on CME chart once the trading resumes on the platform. The CME gap on Bitcoin typically occurs when the price of Bitcoin moves after the CME futures market is closed The value of options on Bitcoin futures is based on the regulated CME CF Bitcoin Reference Rate (BRR) and settles into actively traded Bitcoin futures. Read the FAQ on our Bitcoin options. Watch the videos to learn more on how our Bitcoin contracts work and how they can be used.

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How to trade bitcoin futures contracts on Bitmex

Live Bitcoin BTCUSD Price Chart and Live Bitcoin Trading with Crypto Robot DeriBot on Deribit. ... Bitcoin CME Futures Live Today - Here's What You Need to Know - Duration: 9:41. Bitcoin futures launch tomorrow (Dec. 10) on CBOE and on December 18th for CME Group. Many people speculate that the cause for Bitcoin's run-up recently is over anticipation for these Bitcoin futures. What are Bitcoin futures and what are some examples that show how they work? In this video, I explain Bitcoin futures in a beginner-friendly way and also provide examples of how futures work in ... Some other points to be aware of are: the potential for the futures to hold a higher value than the underlying; and the CME being shut over weekends while others are not, exposing holders to ... bitcoin futures CME group bitcoin bitcoin bitcoin 2017 free btc free bitcoin free ethereum ... How to Trade Bitcoin Futures Contracts on BitMex - Duration: 11:37. Crypto Hustle 32,011 views.

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