Bitcoin Futures Guide Markets Blog

OKCoin Futures Orderbook Showing Negative Contract Values

11/20/2015

This is a bit funny, but sad, considering they're the biggest futures exchange in bitcoin. OKCoin has been pretty glitchy recently. Last week, its LTC/CNY orderbook glitched and went down to 0.03 CNY, they later blamed it on a "hidden bug" (?) in the trading engine. Alright I guess, par for the course in China...

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EMAIL FROM GEMINI: WINKELVI reverses trades made by single customer's fatfinger mistake

11/15/2015

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This is really a bad precedent being set by Gemini and the Winkelvoss twins. For serious, institutional traders, this confirms that there's no reason to use them. Why would you be wasting your money to provide liquidity by putting orders in the orderbook to create depth, when "user error" is enough of a reason to simply reverse any orders that get filled?

Remind me why anyone would trade bitcoin at Gemini again?

From reddit:

"On the evening of Friday, 13 November 2015, a Gemini customer notified us that they had placed a very large market order on the exchange in error.After reviewing the trade, our account review team and executive management determined that the trade was made due to customer error, and meets our criteria for reversal as defined in our terms of service. Following this determination, we reversed each trade that resulted from the market order.
You are receiving this email because you were the counterparty to one of the trades that took place as a result of the erroneous customer order. You may notice that your account balances have changed as a result. You will also see an admin credit and debit entry in your transaction history on Gemini for the trade reversal.
Gemini customers are ultimately responsible for ensuring the accuracy of their orders before placing trades. Trade reversal decisions are made fully at the discretion of Gemini management in cases where the erroneous nature of the trade is clear, notification by the customer is swift, and the impact on all affected parties has been considered and weighed.
We understand you may have questions related to this trade reversal, and encourage you to write us with any questions or concerns you may have.
Thanks,
Gemini Support"

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Evidence of potential manipulation in bitcoin spot and futures market okcoin

11/13/2015

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So today was settlement at OKCoin, and there was a hanging margin call which I mentioned in a previous post. Many traders were concerned that in the event of a selloff, this lingering liquidation would stack socialised losses that the system would not be able to sustain, as the insurance fund was wiped out.

But have no fear, the Woodchipper is here! There was some interesting price action not only in the Futures market but in the Chinese spot market for bitcoin. As can be seen in the image above, OKCoin CNY, along with Houbi and BTCC, made an awkward surge, with OKCoin CNY overshooting by 20 CNY. This was at the exact level where the 18,000 contract margin call was waiting to be filled.

Once the wall was eaten, the spot and futures markets both dropped and have trended downwards in the hour following.

Very interesting price action indeed. If one was conspiracy-minded, one may think that there was some collusion behind these events.

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