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But if I have an unhedged futures position and I don’t buy or sell BTC — and because it’s cash settled, I never have to — I can’t directly affect the price of B
by JackFr 8y ago
But if I have an unhedged futures position and I don’t buy or sell BTC — and because it’s cash settled, I never have to — I can’t directly affect the price of BTC.
- jonknee 8y agoYou're buying or selling the future position with another party and cannot control what they are doing. Most futures are cash settled and they affect markets all the same. Nearly $200b worth of S&P 500 E-Mini contracts traded today and not a single share of stock will be directly involved in those contracts. But you better believe they move the market (just watch what happens when a monster ES order hits the tape).