OKcoin futures is painting an interesting picture. Okcoin sentiment index rarely reaches 60% ( out of top 100 traders, 60 long, 40 short). Futures has a lot of hedgers and they are net short so hitting these levels is pretty extreme. Since each long contract corresponds to one short contract. That means it is likely that a small number of really large accounts are net short and the rest are net long.
Anyone curious whether the 50779 contract trader is a long or short on OKcoin futs? He is long. Here is the open interest and top traders
He had 50799 contracts before, now he holds 38416 after expiration. So that means he held 38K in quarterlies and 12K in weeklies. Can't be next week's because total open interest is less than his holding.
His 12K weekly was force liquidated just before expiry which indicated he was long. 12383+38416=50779
2015-07-31 15:04:18 Close Long 12,383Cont≈฿4,445.0427 $278.58
I've noticed a recent influx of questions regarding BTC and LTC futures on the daily thread. Many first timers with questions like: where to trade them, socialized losses and leverage. I compiled a list of questions that a trader should answer to fully understand futures. Please add to the list if I miss something. Google for all answers.
I have no problem holding bitcoins. However, oftentimes, I do not wish my fiat value of BTC to fluctuate too much. I hedge my bitcoins using futures market. There aren’t too much literature of hedging so far, so I'll go over what I do. In this bitcoin article, I will go over the setup, and risk involved with bitcoin hedging and trading.
I have been confused by OKCoin's futures index price for a while. I hope OKcoin representatives can step up and answer it below.
As of now, and I quote from their calculation method as follows: "Currency Conversion: The chosen unit of account is USD. All non-USD prices will be included in the index after being converted to USD. The currency rate shall be converted using the official exchange rate released by the Chinese Central Bank every morning at 9:30 am CST (UTC+8)." Source for calculation
I think most of you are aware of the new changes to socialized losses on btc futures at Okcoin. If so, skip ahead. In summary, they are going to stop adding insurance funds. This is used as a safety net for margin called losses that aren't filled. As of today, the weekly insurance fund is at 17BTC with last week’s loss totaling more than 150+BTC.
I was thinking about OKCOIN futures while I was taking a dump
Okcoin futures, unlike bitfinex margin account, is denominated in BTC only. Hence, BTC is the collateral and settlement of contracts. So, the total asset denominated in USD or CNY is going to flutuate against BTC price. In order to hedge your collateral coins against BTC movements, you should short 10% of your coins at 10x or 5% at 20x on the Quarterly.