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Futures manipulation is hard when the future is controlled. Futures aren't as impacted by price as you imply under the effects of market manipulation. While y
by Guvante 3y ago
Futures manipulation is hard when the future is controlled.
Futures aren't as impacted by price as you imply under the effects of market manipulation.
While you might have a change due to expected resiliency generally futures don't shift like assets do under temporary manipulation.
If it only lasts a day or two futures don't have time to shift.
- Nevermark 3y agoI see, so if I get this right, futures are valued based on the expected asset value at the future’s expiry date - which tends to be more sensitive to trends (which are harder to manipulate), and less sensitive to momentary price fluctuations (which are much easier to manipulate)? Except as the expiry date approaches. At that time fluctuations in assets and and derivatives must approach lock step, with the derivative having a magnified response. So there should be at least that critical time (approaching expiration) when market manipulation impacts derivatives more proportionally than base asset prices.
- Guvante 3y agoVolume matters and if the majority are outside that window it shouldn't impact the majority. Again though the bar for Judicial overriding a consistent ruling should be very high. And they consistently made this choice.