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Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,386
Thanks Received: 10,206
While he didn't say it explicitly in the presentation I got the impression that making the contract large was done intentionally to reduce excessive speculation. I believe the question of market makers is moot. They have them in the large contract, there would be even more in a smaller contract. Anybody with access to both the cash and futures could try and make a market/arbitrage it. Trading Technologies allows you to do this. I have access to the Coinbase, BitMEX, and Deribit Crypto exchanges, and of course the CME and ICE Bitcoin futures. So Spreading any of these is as easy as spreading two CL futures contracts.
That's kind of misleading. OI is normally discussed in contracts not Notional.
ETH H1 (91,825 Notional) ~ $45,454 Initial Margin
ETH H1-J1 Spread ($675 Notional) ~ $1,433 Initial Margin
BTC H1 - ETH H1 1:1 Spread ($150,100 Notional) ~ $107,000 Initial Margin ie benefiting from $39,577 in offsets
BTC H1 - ETH H1 1:2 Spread ($58,275 Notional) ~ $112,866 Initial Margin ie benefiting from $85,031 in offsets
BTC H1 - ETH H1 1:3 Spread ($33,550 Notional) ~ $118,743 Initial Margin ie benefiting from $130,485 in offsets
Question for somebody who actually trades cash crypto's (not futures). Can you trade the BTC:ETH, ie be long one and short the other, if so how do they margin that?
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,386
Thanks Received: 10,206
Thanks @Big Mike. Trading the futures but havent taken the cash plunge yet.
For Comparison, ICE Margin COB 2/9
BTM H1 $15,750 so 5 coins would be $78,750 vs $101,123 on CME.
BTM H1-J1 Spread $2,604 so 5 coins would be $13,020 vs $3,630 on CME.
So trade outrights on ICE but Spreads on CME!
I think the pair is ETH/BTC ..have never traded it as I'm only HODLing and exchanging/storing 1 coin
I would think this would pertain to someone who trades the perpetual pairs with or without leverage even upto 100x
I believe there are some youtube videos on margining but this is more of a question for non US people I would think
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,386
Thanks Received: 10,206
Coinbase and Gemini both don't allow margin trading. So their margins are more than double. Where else can an America trade spot at better margin rates (and not get killed on fees)?
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,386
Thanks Received: 10,206
Re: ETH:BTC I understand that you can trade it. My question is, as an American, lets say I have ample USD in my account, can I trade the ETH:BTC spread, or as @jokertrader said, can you only use it to move back and forth from one coin to the other - ie you are always net long?
