[Daily Discussion] - Monday, September 27, 2021 Bitcoin Markets |
- [Daily Discussion] - Monday, September 27, 2021
- Binance EXPOSED again! Dr. Carol Alexander on WTMS
- An increase in derivatives trading activity is enough to push the price up, here's why.
[Daily Discussion] - Monday, September 27, 2021 Posted: 26 Sep 2021 09:00 PM PDT Thread topics include, but are not limited to:
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Binance EXPOSED again! Dr. Carol Alexander on WTMS Posted: 27 Sep 2021 09:48 AM PDT |
An increase in derivatives trading activity is enough to push the price up, here's why. Posted: 27 Sep 2021 02:48 AM PDT I thought this was obvious for most traders, but talking to a handful of them I realized no one ever thought about this. You need margin to trade derivatives, so you post collateral. This collateral is crypto. If you do inter-exchange derivatives trading, you need to post collateral in each exchange. Even if your overall position is a winner, you need a lot of collateral to guarantee you're not liquidated in the losing side (assuming you're running some sort of arbitrage strategy). So just the fact that people are trading crypto derivatives is enough to increase demand. [link] [comments] |
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