The OTC trades process
>. let's clarify a few points on how OTC trading works and how it impacts markets. When a customer comes to an OTC desk - on Telegram or WhatsApp - he will request a quote: "can i please see a price for 1,000 BTC - approx $4mln?"
>. the market maker is going to check the liquidity available in the market - the exchange order book depth - and see at what price he can buy and sell 1,000 BTC
>. if he can sell at say 3,950 and buy at 4,050 he will add his commission on top of it - say 50$ and come back to you by showing you a firm price: "3900 / 4100 per bitcoin, good for 1,000 units"
>. This is what we call a "2-way" quote. 3,900 is the market maker's "bid" and 4100 its "offer". As a customer, you can buy at 4,100 by "lifting the offer" or sell at 3900 by "hitting the bid". You just have to answer "i buy please or (i sell)".
>. The quality of the quote is measured by its tightness - what we call the "bid-offer spread". Here the spread is 4100 - 3900 = $200, 5% of the price of bitcoin. Not great given the amount of volumes in crypto markets!
>. When you confirm the trade, the market maker will execute it at market on exchange to hedge its position and lock-in its commission. That's why most of OTC volumes are reflected on exchange volumes. Sometimes it's not when the risk is warehoused or the trade is crossed.
>. Buying 1,000 BTC at market today on Coinbase would cost you $4,400 per coin, almost 10% of premium to spot for only a $4mln trade. Not good.
>. Like in FX, the liquidity for physical bitcoin is fragmented across exchanges so market makers will usually put together the various order books - "aggregated order books" - and execute across venues. Still, the liquidity for physical bitcoin is not great.
>. This is where Bitmex comes in and market makers start looking at "proxy hedging" to show tighter prices. Proxy hedging is the process of hedging a trade with another instrument that has more liquidity and is very correlated. See Bitmex vs Coinbase here.
>. Bitmex is interesting because it has an orderbook depth that is 10 to 20x the size of Coinbase for instance. That means cheaper liquidity and more margins :) But is it an effective hedge?
>. Monitoring the performance of the hedge is key as the market maker will be running what we call the "basis" risk - the difference in price between the bitcoin physical price and the bitmex's perpetual swap he used to hedge. See how tight it is.
>. So what's the liquidity like on Bitmex? Below is how much you have to pay (without fees) vs spot to buy/sell $10mln in %. On average 70 basis points over the last 24h. Remember on Coinbase, it's close to 10% for $4mln!
> the bid offer spread is also stable - on average 1.3%. All in all, traders on the sell-side spend a lot of time monitoring liquidity conditions and build increasingly sophisticated system to improve their pricing.
> Hope this will help for people using OTC desks on considering the quality of the quotes they are getting. If you get charged 1%+ to buy $1mln worth of bitcoin, you should maybe return it! There is more to cover on execution and other topics but this is start!
|Information provided by Skew Markets|
>. let's clarify a few points on how OTC trading works and how it impacts markets. When a customer comes to an OTC desk - on Telegram or WhatsApp - he will request a quote: "can i please see a price for 1,000 BTC - approx $4mln?"
>. the market maker is going to check the liquidity available in the market - the exchange order book depth - and see at what price he can buy and sell 1,000 BTC
>. if he can sell at say 3,950 and buy at 4,050 he will add his commission on top of it - say 50$ and come back to you by showing you a firm price: "3900 / 4100 per bitcoin, good for 1,000 units"
>. This is what we call a "2-way" quote. 3,900 is the market maker's "bid" and 4100 its "offer". As a customer, you can buy at 4,100 by "lifting the offer" or sell at 3900 by "hitting the bid". You just have to answer "i buy please or (i sell)".
>. The quality of the quote is measured by its tightness - what we call the "bid-offer spread". Here the spread is 4100 - 3900 = $200, 5% of the price of bitcoin. Not great given the amount of volumes in crypto markets!
>. When you confirm the trade, the market maker will execute it at market on exchange to hedge its position and lock-in its commission. That's why most of OTC volumes are reflected on exchange volumes. Sometimes it's not when the risk is warehoused or the trade is crossed.
>. Buying 1,000 BTC at market today on Coinbase would cost you $4,400 per coin, almost 10% of premium to spot for only a $4mln trade. Not good.
>. Like in FX, the liquidity for physical bitcoin is fragmented across exchanges so market makers will usually put together the various order books - "aggregated order books" - and execute across venues. Still, the liquidity for physical bitcoin is not great.
>. This is where Bitmex comes in and market makers start looking at "proxy hedging" to show tighter prices. Proxy hedging is the process of hedging a trade with another instrument that has more liquidity and is very correlated. See Bitmex vs Coinbase here.
>. Bitmex is interesting because it has an orderbook depth that is 10 to 20x the size of Coinbase for instance. That means cheaper liquidity and more margins :) But is it an effective hedge?
>. Monitoring the performance of the hedge is key as the market maker will be running what we call the "basis" risk - the difference in price between the bitcoin physical price and the bitmex's perpetual swap he used to hedge. See how tight it is.
>. So what's the liquidity like on Bitmex? Below is how much you have to pay (without fees) vs spot to buy/sell $10mln in %. On average 70 basis points over the last 24h. Remember on Coinbase, it's close to 10% for $4mln!
> the bid offer spread is also stable - on average 1.3%. All in all, traders on the sell-side spend a lot of time monitoring liquidity conditions and build increasingly sophisticated system to improve their pricing.
> Hope this will help for people using OTC desks on considering the quality of the quotes they are getting. If you get charged 1%+ to buy $1mln worth of bitcoin, you should maybe return it! There is more to cover on execution and other topics but this is start!
|Information provided by Skew Markets|
Hashed Plutus (Crypto Signals, Technical Analysis, Education and News)
Photo
Hashed Market Analysis
Okay first off I would make this clear it's not my chart but this chart pretty much resembles my idea of the current scenario. We will have a bounce off the support near the $3700 or rather $3650 levels as stated in chart and might get another push to test the $4400 level. For now you can make an entry based on the chart but I prefer spending the Christmas in a chill stress free environment.
Okay first off I would make this clear it's not my chart but this chart pretty much resembles my idea of the current scenario. We will have a bounce off the support near the $3700 or rather $3650 levels as stated in chart and might get another push to test the $4400 level. For now you can make an entry based on the chart but I prefer spending the Christmas in a chill stress free environment.
Hashed Plutus (Crypto Signals, Technical Analysis, Education and News)
Photo
Load in the LONGS
Now you commend me for accuracy. The chart exactly got in frame. If you set the entry according to the chart you probably did the best thing on Christmas. Let's make the money baby!
Love,
@cryptopotatoes
Now you commend me for accuracy. The chart exactly got in frame. If you set the entry according to the chart you probably did the best thing on Christmas. Let's make the money baby!
Love,
@cryptopotatoes
Announcement
Hold your horses guys we will be releasing the hand picked coin of the year on the Eve of New Year.
Be prepared for the best altcoin you will need for 2019❤
Hold your horses guys we will be releasing the hand picked coin of the year on the Eve of New Year.
Be prepared for the best altcoin you will need for 2019❤
Guys I'm sorry for not dropping in updates yesterday. We lost a loved one.
As for the position I just checked the charts and we have held on well from our buy at $3650 ranges.
I have a PDF file on Gold crisis set up for you'll.
As for the position I just checked the charts and we have held on well from our buy at $3650 ranges.
I have a PDF file on Gold crisis set up for you'll.
Hashed Plutus (Crypto Signals, Technical Analysis, Education and News)
The GOLD CRISIS.pdf
Ignore the formatting. It's terrible
📨 Hashed News Update
🇯🇵 Japanese internet giant GMO is leaving the crypto mining industry due to extraordinary loss of JPY 35.5 billion and will discontinue manufacture of all mining equipment.
via Cointelegraph
🇮🇳 According to a recent report, the Indian government might legalize cryptocurrencies, but with strict regulation attached.
via CoinDesk
❎ The Singapore-based cryptocurrency exchange KuCoin has delisted 10 crypto tokens, that have not met strict set of operational criteria.
via NewsBTC
🖊 Bear market has triggered a rise of M&A activity among crypto companies with good liquidity, that have been acquiring numerous successful startups throughout the year.
via Bitcoin.com
📉 Prominent crypto investor Kyle Samani believes that major layoffs at Bitmain might be followed by a dump of company's crypto stockpile, which includes a massive number of Litecoin and Bitcoin Cash.
via CCN
🇯🇵 Japanese internet giant GMO is leaving the crypto mining industry due to extraordinary loss of JPY 35.5 billion and will discontinue manufacture of all mining equipment.
via Cointelegraph
🇮🇳 According to a recent report, the Indian government might legalize cryptocurrencies, but with strict regulation attached.
via CoinDesk
❎ The Singapore-based cryptocurrency exchange KuCoin has delisted 10 crypto tokens, that have not met strict set of operational criteria.
via NewsBTC
🖊 Bear market has triggered a rise of M&A activity among crypto companies with good liquidity, that have been acquiring numerous successful startups throughout the year.
via Bitcoin.com
📉 Prominent crypto investor Kyle Samani believes that major layoffs at Bitmain might be followed by a dump of company's crypto stockpile, which includes a massive number of Litecoin and Bitcoin Cash.
via CCN
Ethereum Update
While I was reading through different analytics for ethereum I found this one having the best charting as per my discretion.
In my opinion if you guys have longs you can probably set them closed at $125 as overall the market is quite unstable
Also we are looking to test my long term target of $2500 in January 2019
While I was reading through different analytics for ethereum I found this one having the best charting as per my discretion.
In my opinion if you guys have longs you can probably set them closed at $125 as overall the market is quite unstable
Also we are looking to test my long term target of $2500 in January 2019
📨 Hashed News Update
🎭 The Wall Street Journal analyzed 3,300 ICO (initial coin offering) projects and !
found that 16% of them showed signs of “plagiarism, identity theft, and promises of improbable returns.”
via Cointelegraph
🔚 Japanese Internet solutions giant GMO will no longer develop, manufacture, or sell cryptocurrency mining machines.
via The Block
⚖️ Craig Wright’s recent dismissal motions in regard to a billion-dollar Bitcoin lawsuit where he is named as a defendant were denied.
via Bitcoin.com
👩⚖️ Crypto law firm Silver Miller announced the start of a new federal court lawsuit against trader Jeremy Spence, the alleged operator of a crypto Ponzi scheme.
via PR Newswire
🙅🏻♂️ Mark Karpeles, a former CEO of now-defunct Bitcoin exchange Mt. Gox, pleaded not guilty in the final argument for his trial.
via CoinDesk
🤝Africa Conducts Over 17,000 Peer-to-Peer Trades Per Day Using Gift Cards
Via CCN
🥶Electrum Wallet Phishing Attack Nets Hackers $900K in Bitcoin
Via Bitcoinist
🇮🇹Italy Announces 30 Experts to Lead National Blockchain Strategy
Via Coindesk
💹Dow, S&P 500 Eye Further Gains after Wild Week on Wall Street
Via CCN
🎭 The Wall Street Journal analyzed 3,300 ICO (initial coin offering) projects and !
found that 16% of them showed signs of “plagiarism, identity theft, and promises of improbable returns.”
via Cointelegraph
🔚 Japanese Internet solutions giant GMO will no longer develop, manufacture, or sell cryptocurrency mining machines.
via The Block
⚖️ Craig Wright’s recent dismissal motions in regard to a billion-dollar Bitcoin lawsuit where he is named as a defendant were denied.
via Bitcoin.com
👩⚖️ Crypto law firm Silver Miller announced the start of a new federal court lawsuit against trader Jeremy Spence, the alleged operator of a crypto Ponzi scheme.
via PR Newswire
🙅🏻♂️ Mark Karpeles, a former CEO of now-defunct Bitcoin exchange Mt. Gox, pleaded not guilty in the final argument for his trial.
via CoinDesk
🤝Africa Conducts Over 17,000 Peer-to-Peer Trades Per Day Using Gift Cards
Via CCN
🥶Electrum Wallet Phishing Attack Nets Hackers $900K in Bitcoin
Via Bitcoinist
🇮🇹Italy Announces 30 Experts to Lead National Blockchain Strategy
Via Coindesk
💹Dow, S&P 500 Eye Further Gains after Wild Week on Wall Street
Via CCN
Hashed Plutus (Crypto Signals, Technical Analysis, Education and News)
Photo
Well well. Another short squeeze by the whales. We have a few crucial things to consider before we make some moves. It is Essential for the daily candle to close above $3800 levels. If this is done well we can see some greens in the alt coin market and also achieve some stability overall.
The other scenario is that we close below those levels, we might potentially retest the $3500 zone and have a bearish momentum into 2019.
The other scenario is that we close below those levels, we might potentially retest the $3500 zone and have a bearish momentum into 2019.
Hashed Plutus (Crypto Signals, Technical Analysis, Education and News)
Well well. Another short squeeze by the whales. We have a few crucial things to consider before we make some moves. It is Essential for the daily candle to close above $3800 levels. If this is done well we can see some greens in the alt coin market and also…
You see that fresh green? Yep that's what we expected if we closed above $3800 levels and we did. Cheers to all the longs on alts
Bitcoin Minute Analysis
Looking at the charts for a brief pattern I see the price moving in a very sight range $3680 and $3950. Now when we look at a support line we can see that we might retest the $3700 levels and if we dont hold we will drop to the next support at about $3600.
MACD aslo seems to be crossing over in the near future and might see a dip.
https://www.tradingview.com/x/TzwHEM2O
Looking at the charts for a brief pattern I see the price moving in a very sight range $3680 and $3950. Now when we look at a support line we can see that we might retest the $3700 levels and if we dont hold we will drop to the next support at about $3600.
MACD aslo seems to be crossing over in the near future and might see a dip.
https://www.tradingview.com/x/TzwHEM2O
Sneak peek of the coin of the year report. Hope you all are excited. Honestly I didn't need much typing as tons of research is all over the net. I'm just filling in here and there and compiling.
PS: Please spread the word about this channel @hashedplutus. This will help us grow as a community.
PS: Please spread the word about this channel @hashedplutus. This will help us grow as a community.
Hashed Plutus (Crypto Signals, Technical Analysis, Education and News)
Bitcoin Minute Analysis Looking at the charts for a brief pattern I see the price moving in a very sight range $3680 and $3950. Now when we look at a support line we can see that we might retest the $3700 levels and if we dont hold we will drop to the next…
We did pretty well and as planned stayed in the frame. Congrats to those who shorted on my call.
https://www.tradingview.com/x/AeK3dteH/
https://www.tradingview.com/x/AeK3dteH/