Both once the CBOE future expired and after this, when the CME bitcoin future is coming settlement, there was an amazing decline in the bitcoin price. Both futures has a serious low volume i would reckon that they’re covered with a single liquidity provider\/market maker. Forex trading maker is most probably short the long run and perhaps long the area. At expiry, they’ll profit if your price is low and have a border after settlement in the event the cost rebounds. Sadly both CME and CBOE has chosen a really bad settlement processes which can be all to easy to manipulate. For CBOE oahu is the auction price for Gemini – a young with a tiny volume most of the time.
CME’s model is much better, but nevertheless not very good, VWAP on the four major exchanges is a good idea, but if that VWAP is calculated on only one minute of trading it’s meaningless. With few large participants, the volume on a real brief span of time is incredibly limited. Even when many large participants might have interests in a of those settlement processes they’d most likely have the identical position and advantages of precisely the same side in the market manipulation. The VWAP should have been calculated over several hours instead). The final outcome is always that we likely will see a lot of strange market activity around each future expiration and expect a rebound after 3 pm Central time today!.
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