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Doesn’t that beg the question? Why hasn’t a platform capitalised on the perpetual future in tradfi markets. I can understand why CME might not. But why wouldn’
by RileyJames 3y ago
Doesn’t that beg the question? Why hasn’t a platform capitalised on the perpetual future in tradfi markets.
I can understand why CME might not. But why wouldn’t a new entrant like robinhood launch perpetual futures?
- polygamous_bat 3y agoBecause perpetual future doesn't make sense for a lot of things people trade futures for: corn, soybean, crude oil. They have physical presence and in some cases an expiry date. There are futures for other financial instruments or indexes where it might make more sense, but there the use of futures is more about hedging than owning the underlying, since it's not as complicated as owning your own crypto and keeping it safe.
- charlieyu1 3y agoWell it actually makes sense, production is often continuous, most producers just want to hedge some risk due to price fluctuations over the time, they have no interest in physical delivery because it is often expensive.
- vgatherps 3y agoOne answer here is that with dated rates products (I.e. all futures and options, not to mention spot ficc) is * pricing is well understood * shares similar risks across all products If you add an ES perp, that might be a fine instrument in isolation, but it behaves totally differently than most other rates instruments so might be hard to fit into a portfolio than dated futures that you roll. I ran a trading desk in the past that did both dated and perpetual products and this was a major point of focus.
- yareally 3y agoThe liquidity would be terrible and all retail trading. Most CME futures are bought and sold by Market Makers, not us retail little guys. The liquidity on Nasdaq (NQ) or S&P (ES) futures are so impressive that I can put in a sell stop order with a limit of only 1 tick from the stop and it will always fill outside of major market events.