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There is another story behind this too: https://finance.yahoo.com/news/interactive-brokers-launches-bitcoin-futures-162800693.html https://finance.yahoo.com/ne

There is another story behind this too: https://finance.yahoo.com/news/interactive-brokers-launches-bitcoin-futures-162800693.html https://finance.yahoo.com/news/interactive-brokers-launches-... This particular broker IB has accounted for nearly 50% of the traded contracts. But, they are not allowing any shorts at all. They wont even allow market orders Due to the extreme volatility of cryptocurrencies, clients will be unable to assume a short position. In addition, only limit orders will be accepted.

ISL 9y ago
Not allowing market orders can be reasonable. Trading with market orders is generally like playing with fire. If you're comfortable with the current market price, just place a limit order at or slightly above market price, and it will usually fill. Telling the market: "I want to trade now, and price is completely irrelevant" can be a recipe for a bad time.
- thisisit 9y ago
  > Not allowing market orders can be reasonable. How do you figure? People in cryptocurrency are already not afraid of the rampant volatility so this move seems to protect the broker and not market participant. This also raises another question - whether these guys have stop orders? Because stop orders actually become market orders once triggered and help people get out at whatever price possible. Turn this into stop limit and it tries to find the "best" price possible and many people left holding the bag if things go south.
  - pikchurn 9y ago
    So set a limit order at half the current price, or whatever. Placing a market order is equivalent to saying "I'll accept $0 for this asset, so long as that was the best price available." Only most people assume it means "I'll pay the number shown, or something close to it" which is only true of relatively stable assets on markets with plenty of liquidity. Making only limit orders available forces the market participant to choose what range of prices they would find acceptable.
    - bryanbuckley 9y ago
      I rarely trade but have enough times to learn the various types of orders one might place, order books, spread, and a few other things. Why doesn't an order type exist like: > "I'll pay the number shown, or something close to it" ? Like: acquire/lock all units to fulfill me market trade and if it is less/more than what i expect, cancel.
      - pikchurn 9y ago
        A limit order. Specifically a fill-or-kill limit order for the cancellation part. Most people don't realize a limit order isn't "buy at this price" but rather "buy at the best price in my favor, but don't spend more than this much." Fill-or-kill means don't put it on the books, just get it now or cancel. You can also typically specify whether it is a partial fill-or-kill too (get it all or none at all).
        bryanbuckley 9y ago
        TIL! Much thanks. Are you sure this (buy at best price in my favor) is how it is implemented commonly (e.g. the limit order is not just rejected for being an invalid liquidity maker order?)? I guess it is the Fill-or-Kill that is key; I suppose you can add an additional factor to that limit order to give yourself a range of acceptable prices (obviously you could program it, but is it a common order type on something like E-Trade?)?
        pikchurn 9y ago
        "In your favor" is how it is required to be implemented by law. You get the absolute best price on the books at the time it hits the exchange. Of course that doesn't stop low-latency firms exploiting information differentials to get their bids in before your order makes it to the exchange, a process called front-running. It would be illegal for your own brokerage to frontrun you, but pretty much all discount brokerages sell information to third parties, which enables those third parties to front-run. Ever wonder why your Robinhood trades are free?
      - 9y ago
- SilasX 9y ago
  I've tried doing that -- even with large spreads, the market moves before I can input something within the spread. (Speaking mainly of Gemini.)
matwood 9y ago
They are also requiring 40-50% margin per contract (1 contract == 1 BTC).

ISL 9y ago

Not allowing market orders can be reasonable. Trading with market orders is generally like playing with fire. If you're comfortable with the current market price, just place a limit order at or slightly above market price, and it will usually fill. Telling the market: "I want to trade now, and price is completely irrelevant" can be a recipe for a bad time.

thisisit 9y ago
> Not allowing market orders can be reasonable. How do you figure? People in cryptocurrency are already not afraid of the rampant volatility so this move seems to protect the broker and not market participant. This also raises another question - whether these guys have stop orders? Because stop orders actually become market orders once triggered and help people get out at whatever price possible. Turn this into stop limit and it tries to find the "best" price possible and many people left holding the bag if things go south.
- pikchurn 9y ago
  So set a limit order at half the current price, or whatever. Placing a market order is equivalent to saying "I'll accept $0 for this asset, so long as that was the best price available." Only most people assume it means "I'll pay the number shown, or something close to it" which is only true of relatively stable assets on markets with plenty of liquidity. Making only limit orders available forces the market participant to choose what range of prices they would find acceptable.
  - bryanbuckley 9y ago
    I rarely trade but have enough times to learn the various types of orders one might place, order books, spread, and a few other things. Why doesn't an order type exist like: > "I'll pay the number shown, or something close to it" ? Like: acquire/lock all units to fulfill me market trade and if it is less/more than what i expect, cancel.
    - pikchurn 9y ago
      A limit order. Specifically a fill-or-kill limit order for the cancellation part. Most people don't realize a limit order isn't "buy at this price" but rather "buy at the best price in my favor, but don't spend more than this much." Fill-or-kill means don't put it on the books, just get it now or cancel. You can also typically specify whether it is a partial fill-or-kill too (get it all or none at all).
      - bryanbuckley 9y ago
        TIL! Much thanks. Are you sure this (buy at best price in my favor) is how it is implemented commonly (e.g. the limit order is not just rejected for being an invalid liquidity maker order?)? I guess it is the Fill-or-Kill that is key; I suppose you can add an additional factor to that limit order to give yourself a range of acceptable prices (obviously you could program it, but is it a common order type on something like E-Trade?)?
        pikchurn 9y ago
        "In your favor" is how it is required to be implemented by law. You get the absolute best price on the books at the time it hits the exchange. Of course that doesn't stop low-latency firms exploiting information differentials to get their bids in before your order makes it to the exchange, a process called front-running. It would be illegal for your own brokerage to frontrun you, but pretty much all discount brokerages sell information to third parties, which enables those third parties to front-run. Ever wonder why your Robinhood trades are free?
    - 9y ago
SilasX 9y ago
I've tried doing that -- even with large spreads, the market moves before I can input something within the spread. (Speaking mainly of Gemini.)

matwood 9y ago

They are also requiring 40-50% margin per contract (1 contract == 1 BTC).