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Futures-trading

Micro Bitcoin Futures Will Increase the Addressable Market Each event lifted Bitcoin to new highs Next up- Micro futures Expanding the addressable market through lower margin requirements- Real Estate is about location; other markets are all about liquidity The market cap is still low and has room to rise The next event will be the ETFs- It could take time I remember a commercial that aired in New York for the lottery. The memorable slogan was “All you need is a dollar and a dream.” The odds of hitting the six lotto numbers along with the Powerball number were infinitesimal. At a recent Powerball drawing in Tennessee was one in 292.2 million. People have a one in 2.32 million chance of being killed in a lightning strike, to put the odds in perspective. Meanwhile, a $1 investment in Bitcoin eleven short years ago bought 166.67 tokens at six cents per coin. At the April 14 high at $65,520, the $1 invested was worth over $1.09 million, a jackpot. The incredible return continues to fuel widespread speculation in the digital currency arena. Each day new tokens come to market. While Bitcoin and Ethereum are the leaders, there were another over 9,500 tokens, and rising, at the end of last week. While Bitcoin’s value has risen steadily over the past eleven years, it has been a bumpy road. The Mount Gox debacle in 2014 shook confidence in the digital currency market and sent Bitcoin’s price substantially lower. High-profit critics over the past years have called Bitcoin and the other cryptocurrencies everything from a scam to a Ponzi scheme. JP Morgan Chase’s Jamie Dimon called it a “fraud” in 2017. Warren Buffet said it was financial “rat poison squared.” They were wrong as the digital currencies continue to challenge the status quo. The CME rolled out its first futures contract in December 2017. The move pushed Bitcoin’s value over the $20,000 level. Monday, the CME will introduce a micro Bitcoin futures contract, which is likely to add liquidity to the market and help in the maturation process. Each event lifted Bitcoin to new highs Bitcoin has been around for a little over a decade. From humble beginnings where those with the foresight to mine the tokens found a treasure if they held it, the price of the leading cryptocurrency has vaulted to new highs each time acceptance grew. In late 2017, the Chicago Mercantile Exchange rolled out futures contracts that sent the price to the first record high at over $20,000 per token. The chart highlights the peak at $20,650 in December 2017. This picture shows the incredible rise from price levels before the CME’s futures contract, which provided liquidity and expanded the addressable market. The CME rolled out Ethereum futures on February 8 with the same impact on the price of the second-leading digital currency. Ether’s price rose in anticipation of the futures contract, but the February 8 rollout turbocharged the gains. Ethereum hit an all-time high at $2803.75 on April 29 as the bullish party continues to push the price to higher highs. Meanwhile, other events have fostered a rising acceptance for the asset class, which has come a long way from Jamie Dimon’s classification as a “fraud” and Warren Buffett’s characterization as “financial rat poison squared.” Last September, Jack Dorsey’s Square (SQ), a payments technology company, bought $50 million worth of Bitcoin. They added another $170 million in purchases in early 2021. Meanwhile, Elon Musk’s Tesla (TSLA) swooped in and bought $1.5 billion of Bitcoin early this year and said it would accept the cryptocurrency for its EVs. Tesla is not the only company accepting cryptos these days. I've included a link to the growing number of companies and businesses accepting Bitcoins in the full article. The bottom line is that the more companies accept Bitcoin, the more investment capital pours into the market. At the end of last week, Bitcoin’s market cap stood at roughly the $1.082 trillion level. The Coinbase listing on NASDAQ was the last significant event. On April 14, the listing date, Bitcoin reached its latest record high at $65,520 per token. Next up- Micro futures The five-token Bitcoin contract had a nominal value of $327,600 when the price reached its April 14 high. Original or initial margin requirements or the good-faith deposit required to trade a Bitcoin future was roughly $160,000 per contract, precluding many market participants from trading the product. The extreme volatility in Bitcoin’s price requires a high margin level. This week, on May 3, the CME rolled out the Micro Bitcoin future, a pint-sized product that makes Bitcoin futures trading and investing available to a broader audience. The contract is 1/50th of the size of the original futures (0.1 Bitcoin per micro contract), meaning margin requirements will be around the $2,500 level. Micro futures will allow for hedging, speculation, and trading at a more manageable risk level for many. Expanding the addressable market through lower margin requirements- Real Estate is about location; other markets are all about liquidity In the real estate market, the mantra is location-location-location. In financial products, it’s liquidity-liquidity-liquidity. Mature markets offer buyers and sellers the ability to execute purchases or sales on tight bid-offer spreads. Tight spreads are only possible when there is enough critical mass or trading volume created by a substantial number of market participants with interest at all price levels. The CME’s micro product for Bitcoin that lowers nominal margin requirements could have an explosive impact on liquidity. The bottom line is that lower capital requirements make the market available to a growing addressable market, translating to increased liquidity. Liquidity measures include volume and open interest, the total number of open long and short positions in the futures contract. Moreover, increasing liquidity often causes price volatility to decline. We witnessed this in the natural gas futures ( NG1! ) arena, which began trading in 1990 on the CME’s NYMEX division. The price ranged from 1990 through 2005 was from $1.02 to $15.65 per MMBtu, and the price action was wild at times. Over the first fifteen years of trading, the highest-level open interest ever reached was below 600,000 contracts. As the market matured and liquidity grew, open interest rose to over 1.6 million contracts. Over the past twelve years, increased liquidity led to a significant decline in price variance. Please continue reading the full article using the link below. Any investment involves substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential complete loss of principal. This post does not in any way constitute an offer or solicitation of an offer to buy or sell any investment, security, or commodity discussed herein, or any security in any jurisdiction in which such an offer would be unlawful under the securities laws of such jurisdiction.
CME:BTC1!Long
by Andy_Hecht
LTCUSD - A look in the past and prediction for the future.Looking at LTC, the monthly is obviously dissolved but there is STILL room for growth. Litecoin is a long term hold and not something you want to miss out on! There is not much reason why it has not surpassed its ATH, considering the quick growth it is going through currently. Levels to watch are: $150, $200, $250. Make it easy for yourself, my thoughts are it's going to eventually hit $1000. 1 BTC = 100 LTC at 100k. Don't underestimate the power of the bull, you are in life changing times. LTC has dragged during this bull market and only did a solid 4x from $70-240. In the crypto market, a 4x is nothing. Lets prepare for coins that held strong during dumps throughout the years and keep an eye on this prehistoric gem. The last thing you want to do is be left trying to short the top like the naysayers. If you missed out on $BTC, don't miss out on $LTC.
KRAKEN:LTCUSDLong
by UnknownUnicorn11545969
3
No room for error.8 trading positions: Profit-13430p. Loss-0pAll these positions and analyzes (trading ideas) are here under this trading idea. Hello dear friends. First, I would like to congratulate again those who follow my trading ideas, my recommendations, and make money with me. According to my private trading ideas (6/6), we select all possible profits. (2 open trades/2 this week - worked as needed - so far at 95%) Now about the analysis of the situation. Dear traders, look, I am describing to you what I expect: At this time, trading will continue in this ascending channel, from level to level (private trading idea, below) The price will be driven up, and a false breakout will go beyond the border of the global triangle - where most traders will fall into the bear trap. From the values ​​- 38500-39000, I expect a strong decline in the price to such levels as 30000-29000-28500. (liquidation of long positions, before continuing growth) and from there, I expect a quick purchase of the price. Now I don't know where someone sees the head and shoulders here - but personally I see - only an ascending channel, after breaking through the boundaries of which, the price will be directed to such values ​​as: New target for the next 3 trading days (01/18/2021 - 01/21/2021) To one of these boundaries, within 3 days, the price will be displayed ✅ Top - 40350 ✅ Bottom - 33150 The data is relevant for the next 2 trading days. Also, the bitcoin price margin has decreased, which indicates a strong momentum. not less than 4000 points. (Not one candle, of course - but at least 6-12 hours TF) The market maker level - according to my indicator - is narrowing, here even without the indicator you can see how the price is brought to the end of the "symmetric triangle" Most of them see a long position, while I, on the contrary, expect a false breakout, and the price hikes down. We'll see.
by UnknownUnicorn13204076
1
January 13, 2020 1245a CT NQ analysis1/13/21 1240a CT NQ analysis I base most of my NQ trading on the 2 hour chart, using FIB arcs and the 200 ema (dark red). The white arrows designate important pivots for how the fib arcs are drawn. These 2 arcs have been in place since 1/8/21 and have not been adjusted. Notice how the .0786 arc from the 1/6 low is perfect resistance for the last 2 swing highs. Also, note the red arrows pointing to 3 of the swing lows that tested the 200 ema. Note how the market rallied each time those were tested. It required much work during today's volatility, but I have averaged my long NQ position down to the 12850s, looking for a test of all time highs and hopefully higher.
CME_MINI:NQ1!Long
by stimulus
GOLD (XAUUSD) Can Go Even Lower!!! Here is the Reason: hey guys, I have analyzed the strongest bearish rallies on gold since 2017. What I noticed is that both the selloff of 2018 and 2020 made gold lose almost 15% of its value. a new bearish rally that started in august has already corrected the price by 10%. Even though the trend remains sharply bullish , it looks like we still have a potential here to lose 5% more. It is not a trading recommendation but rather an observation. let me know what do you think about it.
TVC:GOLDShort
by VasilyTrader
1
For BTC To Go Up, We go Down Hey hey. Happy Halving and to the world. As ever I am going to keep this short and sweet, as quickly looking at the 1 hour chart I see a potential that a short is still in play. Ok, so to be brief we are starting to see the 200MA and 100MA kiss. If the 200MA starts curtailing above the 100MA, death cross, then we should indeed expect a downtrend and call the last 6 hours or so as capitulation as per the halving and fundamental reasons, with the sideways movement. ALso, the 15 minute shows what appears to be a bear flag forming, which I shall post. There is much more one could write, and in the future I will, but this is a quick publication to benefit the shorters. SO far, nearly all charts have been on the money Good lyck
Short
by UnknownUnicorn6513259
Copper (XCUUSD) Trading Plan & Potential Drop hey guys, pay attention to copper today! currently, the price has reached a key structure resistance level and we have a potential opportunity for short! pay attention to a horizontal decision range on 1H and sell in case of a bearish breakout of it (1H candle close below 2.172! stop will be above the higher high within the channel! target levels: 2.11 / 2.04 in case of a bullish continuation and candle close above 2.24 setups will be invalid! please, support the idea with like and comment! thank you!
OANDA:XCUUSDShort
by VasilyTrader
6