Hey guys , i have been posting for a while now in altcoin forums but this is my first post in Bitcoin forum.
I am trying to understand the relation between the CME futures expiration and the price of Bitcoin in the market , is there any way to track the amount of futures going in long or short ?
From what i know, bitcoin on CME futures is just a contract paper and not holding real bitcoin. The different thing buying bitcoin on exchanger is we can store that bitcoin on our wallet but not with CME Futures because CME futures is just a contract
Yeah, the two are not directly related because the futures contract is basically just a collection of all of the guesses of what traders think the price will be at a given date. It's like a collective bet on the price of something when the paper expires.
Futures are basically just created out of thin air. This is why some people despise financial markets, speculation and any kind of trading. They think that we shouldn't be placing money on something that the contract writers (exchanges, banks) have no physical asset for or no effort to fulfill. They just collect money and then hand it out to those who were on the right side of the market at that time.