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Traders aren't limited to one market or the other and there are plenty of arbitrageurs who will buy/sell futures and do the opposite in the spot market to squee
by jonknee 8y ago
Traders aren't limited to one market or the other and there are plenty of arbitrageurs who will buy/sell futures and do the opposite in the spot market to squeeze out any discrepancies. If the futures are "expensive" you sell them and buy BTC. Reverse if they are "cheap".
- JackFr 8y agoWhere can you short BTC in the spot market?
- jonknee 8y agoSome overseas exchanges allow it (Bitfinex probably the largest), but that would also introduce some counter party risk. Large owners of BTC could be playing in the futures market or loaning their stake to hedge funds / prop shops.