This decreases my level of interest about the CME Bitcoin futures:pic.twitter.com/L5oI6JS7zB
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But what the CME is saying is "Look look look we know the value isn't actually zero even if the spot price is, well, technically speaking, a very zero looking sort of number if you squint at it. So we'll say the true price is e.g. $2.5k a piece and close the contracts."
"Wait a minute... so I get $50k, not $75k." "Yep good math." "And who gets the $25k?" "Your counterparty." "WHY?" "Well we didn't want to wipe them out." "YOU WIPE PEOPLE OUT EVERY DAY. THAT IS A MAJOR PART OF YOUR JOB. THE ORDERLY WIPING OUT OF PEOPLE."
(It is! Most people involved in the futures market are using margin, to avoid tying up the amount of money notionally involved in future contracts. A sharp price movement in either direction generally wipes out some participants. Totally normal.)
e.g. I had at one point said "I'm going to deliver 1.25 million yen in a year in return for your $125k. Here's ~$6k of earnest money." A ~5% chance upwards in the price of yen makes my earnest money go away and the contract close out.
12.5 million. Sorry, always get yen numbers mixed up. The reason to enter into this transaction for me wasn't speculation: I've got a modestly complicated international financial situation with income in JPY and expenses in USD, and I didn't want exchange risk.
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