Both once the CBOE future expired and after this, in the event the CME bitcoin future is on its way settlement, there is a considerable reduction in the bitcoin price. Both futures has a good low volume i would reckon that they are dominated by a unitary liquidity provider\/market maker. The forex market maker is usually short the future and possibly long the location. At expiry, they’ll profit when the price is 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 that are an easy task to manipulate. For CBOE oahu is the auction price for Gemini – a young with a small volume more often than not.
CME’s model is way better, but still of low quality, VWAP for the four major exchanges is a great idea, but if that VWAP is calculated on one minute of trading it’s meaningless. With few large participants, the quantity on such a brief span of time is extremely limited. Even when many large participants may have interests in almost any of the settlement processes they’d more than likely have the same position and advantages of the same side in the market manipulation. The VWAP have to have been calculated over several hours instead). In conclusion is we likely will discover a lot of strange market activity around each future expiration and expect a rebound after 3 pm Central time today!.
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