adamstgBit
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September 13, 2014, 01:19:38 AM

Does anyone have any thoughts about the CFTC approving bitcoin swaps/derivatives trading?

It is my understanding that derivatives allow betting on the direction of an instrument, but do not involve buying or selling said instrument, instead being simply derived from it. Does this mean it will be used for hedging, to reduce volatility etc? Does this mean it cannot be used to push the price around? Could such derivatives soak up institutional liquidity headed directly for btc or COIN?

Is this good or bad for btc?

whoa thats not what i understood...

its trading futures contracts, and options (puts and calls).

this is not bets

puts calls and futures are generally used to hedge ( i think )

Ah. Futures.

The gold market seems fairly well cornered on COMEX by the big investment banks. Is there a good reason why they won't be able to naked short the shit out of bitcoin?

interesting, i wonder if the exchange will allow poeple to sell futures without actually having any bitcoins on the exchange? i guess so... ( maybe some min  balance will do? )

naked shorting bitcoin now is asking for trouble, maybe in 10 years?