Topic: Insane Bitcoin Futures volume at 796.com - page 2. (Read 4069 times)

Yeah, the definitions they use are making me scratch my head, e.g. ''Volume - The intended unit of BTC for closeout, can't exceed holding positions at most.''

What a shitty definition 

As far as I can tell from that baffling page, these 'futures' have close to nothing in common with real futures as used by the rest of the investing world. More to the point, however, nothing on this page explains any connection at all between the meaning of the word 'volume' when entering an order and the meaning of the word 'volume' when the exchange reports total trading activity in a chart.

These 'futures' look like a whacky front end for ordinary margin trading married to a guaranteed stop loss order (maybe something akin to what is to my mind the simpler and cleaner-looking BTC.sx setup?), but who knows? If that's correct, they're much closer to a CFD than a future.

Good luck; I have nothing to add to the party.

Volume shown is in BTC you can find informations here you don't need to sign up.

https://796.com/help.html

BTC/USD futures 'volume' is often reported not in contracts, but in dollars. Looking at the chart you linked, by far the highest volume I see in any period is 137988.86. The chart provides no units. By comparison, the current 24-hour volume on ICBIT for the September contract is $1,346,180, an order of magnitude higher.

Since you have not told us anything about the contract, and you have not told us anything about how the numbers are actually reported -- and you hopefully do not expect anyone to run off and sign up for a new account just so that they can log into the site and answer the question for you -- the default 'sanity check' explanation that those of us who don't know the answers to those two questions would probably opt for is that the exchange reports dollar values, not contract numbers (and almost certainly not BTC values, for that matter).

If you're keen to grind an axe about fraudulent reporting, you'll need to show that the 'sanity check' explanation is false.

I'm not saying you are incorrect; you may be exactly correct. What I am saying, however, is that neither citing Mt Gox trading volumes in BTC nor citing 'futures volume' without any units attached will make a convincing case that anything is out of the ordinary.

I know how a futures market works. Have you checked the volumes on the chart i linked? Do you really think that's normal trading activity for a 2 months old exchange?
140.000 BTC equivalent of futures contract exchanged in 4 hours with absolutely no price movement and then 1.000 BTC traded in the following 12 hours?

Either you do not understand how derivative markets work or you got this misleading info from the exchange. What the exchange may have informed you about is that the minimum contract size (lot) is 1 BTC.

For every BTC mined / issued there can be hundreds BTC futures contracts concluded / traded on derivative markets. In this sense 1 futures contract =/= 1 BTC.

1 future contract = 1 BTC
They are trying to sell their fee shares at a very high price, 90% of their volume is fake i'm sure about that.

It must have been futures contracts (BTC derivatives) that were traded, not the underlying instrument (BTC).

Thanks for sharing with us!

Without any personal experience with 796 or even any knowledge of the exact terms of the futures contract you've mentioned, I can't offer any insights specific to this example.

A more general point might be useful, though: there is no necessary connection of any kind between futures volumes on any given exchange and volumes in the underlying commodity -- or, in this case, currency pair -- on any other exchange. Speaking very generally, especially significant changes in open interest would probably suggest some kind of activity in the underlying currency pair as well, but even there, there's no "how is that possible" conceptual problem.

In principal, derivatives traders could swap contracts back and forth all day long in a speculative frenzy, without any direct exposure to the underlying at all. And, in principal, that sort of speculative frenzy could go on as long as you like, without necessarily moving the needle on open interest.

Having said all that, futures liquidity on BTC/USD on other exchanges such as ICBIT has historically been pretty weak, making it challenging to use them at all. So, on the face of it, I'd personally find it quite surprising if a new entrant like 796 were suddenly generating large volumes of trade in the kinds of contracts which have been available for a relatively long time elsewhere but which haven't generated much in the way of volume.

Looking at the bitcoin futures chart at 796.com i can see volume for yesterday was more then 140.000 BTC while only 16.500 BTC have been traded on MtGox.
I don't know how is that possible, here you can see bitcoin futures chart with volumes https://796.com/futures/chart

Bitcoin Futures volume at 796.com is clearly fake volume, my conclusion is they are pumping up those volume just to give away a very high dividend to shareholders on August 1.

High dividend is what is driving high the price of fee shares that they are actually trying to sell to the public (they already sold 260K of those, 740K shares are still in their hands) so be aware of their scheme and stay away, those shares are worth no more then 1/10 of their current price.