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1 hour ago, baobeiiiii said:

You put 'haha' reaction to my posts when I was a perma-bull, now that I've the opposite viewpoint you still do it. At least if you are gonna be a troll, have a consistent target audience. 

Look at it this way: it gets you reputation points for free.

You know, silver lining and stuff :)

happy best gif GIF

Edited by 7strings
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XRP Futures already existed on Bitmex. Part of the answer to the question lays in observing trading on BTC and ETH "perpetual contract", a derivative based on an index of actual prices on the exc

This is just another one of those pumps before the dump.  The XRP price has been in the gutter for months. This little pump is a joke. Don't be fooled into buying into this pump.

My last patient took Xanax before his appointment, and apparently got lost on the way, because he was a half hour late. (Or maybe he was just enjoying a few final minutes with his natural teeth.

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On 1/6/2020 at 2:17 PM, Caracappa said:

I always wonder if a futures contract is a blessing or a demise for an underlying asset. Will this benefit XRP in the long run?

XRP Futures already existed on Bitmex.

Part of the answer to the question lays in observing trading on BTC and ETH "perpetual contract", a derivative based on an index of actual prices on the exchange.

Volume on XBTUSD contract, (2 to 14 Billion dollars a day) outshines any other venue that I am aware of. The overall leverage of traders is in the 10% range, 100x is allowed vs. 75x on Binance.

10% leverage would mean with XRPUSD at 0.02 USD a move to 0.22 USD would wipe out the shorter.

It is customary on the XBTUSD contract for sudden 100 millions to 250 millions to shove the market up or down in the matter of minutes. When the price difference between the derivative and the actual BTC gaps to a certain delta it becomes profitable for arbitrager bots to sell the derivative, buy the actual on the exchanges or vice versa. Volume traders can operate commission free.

Part of the equation is that Bitmex pays market makers as well as anyone willing to make an offer, that is trade limit.

0.05% on alt coin futures contracts
0.025% on ETH and XBT perpetual contracts

It does mean being paid a commission instead of paying a commission.

This translates into a price differential of about 5 US. One can sell XBT at 7500, buy back at 7508 and still make 2 USD per 7500.

Here lays the intrinsic mechanism driving the increase of volatility. Market makers (a major one being affiliated to Bitmex) always sell in a rising market, buy in falling market.

The cat and mouse game favors pushing prices up and down by pulling the offer upwards or downwards, meaning stop making the market regardless of the exchange price, unless an overwhelming amount of real exchange orders stabilizes price.

When a lot of buyers line up at a price, price will tend to move away, unless of course some other party, another bot or a natural person makes an offer.

In short bots will probe the market by pushing it one way or another, assess the market reaction and keep going till some significant offers are met either on the derivative market or on the exchange.

Throw in the mist orders from real people, either speculating on margin, hedging (meaning leverage sell while either hodling the actual crypto or leverage buy planning to buy the coin later), plus large buy and sell orders, private or institutional, hidden market orders,  iceberg orders (orders hidden in part), chasing pockets of liquidity and stops.

The mitigating factor is the funding rate which hoovers around 30% a year on XBTUSD and 60% a year on ETHUSD. That rate paid or received is calculated based on the difference between the contract and the exchanges price index. The rationale is that someone has to pay or be compensated for that gap as that difference is borrowed or lent.

Keep in mind that all those contracts settle in BTC, not a single ETH or XRP ever transits through that platform.

Bottom line,  market profile has evolved. I hear a whisper in traditional markets that 50% of trading volume would be bot related. Those programs, sometimes automatically trained (machine learning), are statistics based.

I expect strength and weakness to be magnified. Futures also increase the ability of actors to influence price with a fraction of the capital.

Edited by 7Sol
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^ I'm the only one who said anything remotely funny. The rest are trolls who get off on other's misfortune. MQB gets off on it, because he's poor. This is like fantasy football for him. I took a 4-digit loss on XRP but I didn't ***** about it, and I've always had levity and pragmatism and tried to make people laugh. 

Edited by baobeiiiii
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^ qualities that make a winner, irrespective of market conditions or life circumstances. People like, MQB, would have been standing over Steve Jobs and laughing in his face as he died. But, then they go home to their miserable, poor, lives and need another hit of jack*n off to other's struggles.

Some trolls make me laugh, some are devious. I've lived long enough to know that trolls like, MQB, are poor. Rich people don't have the time to jack off to this stuff. Only lonely and poor souls would bother to literally put a laugh/haha reaction to every post. It's all good, he can hug himself while he sleeps tonight. Even if XRP goes to zero, I've enough in savings to go on 150 month-long holidays to exotic locations in 5 star hotels. And i'm only 33yo. Japan is next on my hit list.

Life isn't about what you have, but who you are. By that standard, we are all super rich compared to MQB.

Edited by baobeiiiii
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17 minutes ago, baobeiiiii said:

^ qualities that make a winner, irrespective of market conditions or life circumstances. People like, MQB, would have been standing over Steve Jobs and laughing in his face as he died. But, then they go home to their miserable, poor, lives and need another hit of jack*n off to other's struggles.

Some trolls make me laugh, some are devious. I've lived long enough to know that trolls like, MQB, are poor. Rich people don't have the time to jack off to this stuff. Only lonely and poor souls would bother to literally put a laugh/haha reaction to every post. It's all good, he can hug himself while he sleeps tonight. Even if XRP goes to zero, I've enough in savings to go on 150 month-long holidays to exotic locations in 5 star hotels. And i'm only 33yo. Japan is next on my hit list.

Life isn't about what you have, but who you are. By that standard, we are all super rich compared to MQB.

With all due respect, but why be so bothered about what MQB does. He is not even replying back to you, only liking your posts with “haha”. If anything you are only feeding the troll..

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21 minutes ago, baobeiiiii said:

^ qualities that make a winner, irrespective of market conditions or life circumstances. People like, MQB, would have been standing over Steve Jobs and laughing in his face as he died. But, then they go home to their miserable, poor, lives and need another hit of jack*n off to other's struggles.

Some trolls make me laugh, some are devious. I've lived long enough to know that trolls like, MQB, are poor. Rich people don't have the time to jack off to this stuff. Only lonely and poor souls would bother to literally put a laugh/haha reaction to every post. It's all good, he can hug himself while he sleeps tonight. Even if XRP goes to zero, I've enough in savings to go on 150 month-long holidays to exotic locations in 5 star hotels. And i'm only 33yo. Japan is next on my hit list.

Life isn't about what you have, but who you are. By that standard, we are all super rich compared to MQB.

Looks like you’ve had too much whiskey or his emojis have hit a nerve, you are starting to ramble 🙄

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3 hours ago, 7Sol said:

XRP Futures already existed on Bitmex.

Part of the answer to the question lays in observing trading on BTC and ETH "perpetual contract", a derivative based on an index of actual prices on the exchange.

Volume on XBTUSD contract, (2 to 14 Billion dollars a day) outshines any other venue that I am aware of. The overall leverage of traders is in the 10% range, 100x is allowed vs. 75x on Binance.

10% leverage would mean with XRPUSD at 0.20 USD a move to 0.22 USD would wipe out the shorter.

It is customary on the XBTUSD contract for sudden 100 millions to 250 millions to shove the market up or down in the matter of minutes. When the price difference between the derivative and the actual BTC gaps to a certain delta it becomes profitable for arbitrager bots to sell the derivative, buy the actual on the exchanges or vice versa. Volume traders can operate commission free.

Part of the equation is that Bitmex pays market makers as well as anyone willing to make an offer, that is trade limit.

0.05% on alt coin futures contracts
0.025% on ETH and XBT perpetual contracts

It does mean being paid a commission instead of paying a commission.

This translates into a price differential of about 5 US. One can sell XBT at 7500, buy back at 7508 and still make 2 USD per 7500.

Here lays the intrisic mechanism driving the increase of volatility. Market makers (a major one being affiliated to Bitmex) always sell in a rising market, buy in falling market.

The cat and mouse game favors pushing prices up and down by pulling the offer upwards or downwards, meaning stop making the market regardless of the exchange price, unless an overwhelming amount of real exchange orders stabilizes price.

When a lot of buyers line up at a price, price will tend to move away, unless of course some other party, another bot or a natural person makes an offer.

In short bots will probe the market by pushing it one way or another, assess the market reaction and keep going till some significant offers are met either on the derivative market or on the exchange.

Throw in the mist orders from real people, either speculating on margin, hedging (meaning leverage sell while either hodling the actual crypto or leverage buy planning to buy the coin later), plus large buy and sell orders, private or institutional, hidden market orders,  iceberg orders (orders hidden in part), chassing pockets of liquidity and stops.

The mitigating factor is the funding rate which hoovers around 30% a year on XBTUSD and 60% a year on ETHUSD. That rate paid or received is calculated based on the difference between the contract and the exchanges price index. The rationale is that someone has to pay or be compensated for that gap as that difference is borrowed or lent.

Keep in mind that all those contracts settle in BTC, not a single ETH or XRP ever transits through that platform.

Bottom line,  market profile has evolved. I hear a whisper in traditional markets that 50% of trading volume would be bot related. Those programs, sometimes automatically trained (machine learning), are statistics based.

I expect strength and weakness to be magnified. Futures also increase the ability of actors to influence price with a fraction of the capital.

OOL. but a great comment.

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