Both when the CBOE future expired and after this, once the CME bitcoin future is coming settlement, there was clearly an important decline in the bitcoin price. Both futures has a good low volume and i also would guess that they are dominated by one single liquidity provider\/market maker. Forex trading maker is probably short the long run and perchance long lots of. At expiry, they’ll profit in the event the prices are low where you can border after settlement in the event the cost rebounds. Sadly both CME and CBOE has chosen a very bad settlement processes which are simple to manipulate. For CBOE it does not take auction price for Gemini – a young having a really small volume usually.
CME’s model is better, but nevertheless lower, VWAP around the four major exchanges may be beneficial, but when that VWAP is calculated on only one minute of trading it’s meaningless. With few large participants, the degree on a real brief period is quite limited. Regardless if many large participants could have interests in a of those settlement processes they’d more than likely have similar position and gains advantage from the identical side with the market manipulation. The VWAP must have been calculated over many hours instead). The final outcome is always that we likely will see a large amount of strange market activity around each future expiration and expect a rebound after 3 pm Central time today!.
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