Both once the CBOE future expired and from now on, in the event the CME bitcoin future is coming settlement, there was a substantial loss of the bitcoin price. Both futures has a good low volume i would reckon that these are covered with one single liquidity provider\/market maker. Forex maker is most probably short the future and perhaps long lots of. At expiry, they’ll profit if your prices are low and also have a border after settlement when the cost rebounds. Sadly both CME and CBOE has chosen a very bad settlement processes which can be an easy task to manipulate. For CBOE it does not take auction price for Gemini – a young using a tiny volume more often than not.
CME’s model is way better, but still of low quality, VWAP on the four major exchanges is a good idea, however, if that VWAP is calculated on just one single minute of trading it’s meaningless. With few large participants, the quantity on this kind of brief time period is very limited. Regardless if many large participants may have interests in almost any of these settlement processes they’d more than likely have a similar position and advantages from the identical side with the market manipulation. The VWAP will need to have been calculated over a long time instead). The final outcome is the fact that we likely will discover a great deal of strange market activity around each future expiration and expect a rebound after 3 pm Central time today!.
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