Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
⭐ Merited by Hueristic (1)
So i don't understand options on futures and after an hour researching it I still don't know if I do. I'm gleening that is supposed to add liquiodity so larger players will not become market movers as right now they will effecftively kill liquidity if they participate in the current CMe futures. Is this correct?
Personally I want them to have to push the price up when they take a long and this is just so they can hedge their bets.
On the bright side Bakkt is settled on actual coins and that should really get some mainstream adoption.
Options on futures. A derivative whose underlying is a derivative whose underlying is the btc/usd exchange rate. Hard to grasp. I'm boggled.
I'm betting it's settled in cash, not kind. Maybe this is the key. An instrument to speculate (and exert influence?) on btc/usd without holding a single bitcoin.
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Fuck those CME cunts.
Probably a reasonable summary of your cursory 1-hour analysis.
BTW, thanks for fixing V8 on my behalf
EDIT Of course it's settled in usd. It's an option, not a futures contract!