Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Dec 12, 2017
Will Futures Trading in Bitcoin Kill the Rally…or Fuel It?

Will Futures Trading in Bitcoin Kill the Rally…or Fuel It?

Bitcoin trading reached a major milestone this week—it is now part of the futures market. As of Sunday, December 10, the Cboe Global Markets became the first exchange to launch bitcoin futures, which allows traders to bet on the future price of the surging cryptocurrency. To be sure, a futures trade is a risky one – traders must bet on whether they think the price of bitcoin will go higher or lower, and by how much. Given how volatile the price of bitcoin has been—and how little fundamental drivers there are for rising or falling prices—the trader is basically betting into the unknown.

In fact, since the price of bitcoin is so volatile, Cboe traders of futures contracts in bitcoin will be required to have at least 44% of the bitcoin settlement price set aside as collateral for their bet, in the event that the price goes the other way. It’s normal for the trader to have to set aside some capital to make a futures trade, but normally it’s in the range of 10% of the settlement price. For futures traders in bitcoin, 44% of the settlement price could mean having a good crop of cash on the sidelines, since it’s been pretty much nothing but up in recent weeks for bitcoin. The price surged to $17,000 last Thursday.

The Cboe futures product will trade under the ticker XBT, and until the end of December, the Cboe will waive all transaction fees for bitcoin futures. If you’re an investor who thinks you want to buy a futures contract, you will generally have to go through your broker or hire one to make the trades. That can be a tough proposition since many brokers are waiting on the sidelines for now. TD Ameritrade, Charles Schwab, Fidelity, and eTrade (which are all discount brokers) are holding off on allowing clients to participate. Ally Financial, however, is allowing clients to buy.

 

 

As far as the big investment banks are concerned, JPMorgan and Citigroup—who are two of the biggest players in futures markets—did not participate in the Cboe futures market for bitcoin on Sunday, and the CEO of JPMorgan, Jaime Dimon, has reportedly referred to bitcoin as a “hoax.” Goldman Sachs settled some futures trades for their clients, however.

The opening of Cboe’s futures market for bitcoin, if anything else, will open the door to big banks and exchanges recognizing bitcoin as a legitimate trading asset and having more market participants trading in it, which may very well serve to reduce the volatility over time. As far as whether the futures market will lead to more price surging in bitcoin or perhaps result in a major correction, there is really no way to know. But markets tend to be made more efficient the more traders are allowed to participate, which is what Cboe’s futures market for bitcoin allows for.

Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.