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How is this being calculated? In didn't see anything. - You want to look at the order book, not just the last trade to compare the bid on one against the offer
by jnordwick 9y ago
How is this being calculated? In didn't see anything.
- You want to look at the order book, not just the last trade to compare the bid on one against the offer on another venue. The bid-offer spread can be very wide on some of these.
- Fees should be included.
- You still aren't pricing in counterparty risk, the biggest risk in crypto trading.
- I don't see CME and CBOT. The most reliably venues (you can replicate the spot with a multileg trade).
- zeusk 9y agoIsn't it CBOE?
- jnordwick 9y agoOops. Yes.
- gruez 9y ago>- I don't see CME and CBOT. The most reliably venues (you can replicate the spot with a multileg trade). since those are futures, arbitraging them brings a bunch of other problems. mainly, keeping your (futures) account with enough cash to prevent liquidation (if there are drastic price swings). this is easier said than done because a short position requires 100% margin (afaik).
- zeusk 9y agoNot exactly if you do a spread or calendar trade.
- jnordwick 9y agoMaintenance margin is 40%, I believe.
- gruez 9y agoexcept for short on cme, which requires 100%. http://www.cmegroup.com/education/cme-bitcoin-futures-frequently-asked-questions.html http://www.cmegroup.com/education/cme-bitcoin-futures-freque...
- jnordwick 9y agoI think you are reading that wrong. Initial margin is 100% to 110% of maintenance margin (44%) depending on how they classify you (almost everybody here is a speculator not hedger). Current maintenance margin is about $34k on a single contract (5 BTC).