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Topic: trading futures by manupulating spot. - page 2. (Read 228 times)

legendary
Activity: 966
Merit: 1042
#SWGT CERTIK Audited
August 19, 2023, 11:31:28 AM
#4
does institutions trade like this? :
like buying futures long position(leverages) at $10 and driving spot price(by huge capital) to upwards like something about $10.5 and selling futures at $10.5 and making profits because of leverage.

do institutions or whales trade like that?

Hmm, buddy it can be answered in many ways I would like to answer it with the trading pair because the volume is the key to manipulating the pair you need to have enough capital to compete with the volume suppose you are competing with a pair having a volume of the $1B you need to have at least a reasonable amount like $100M or $200M to drive the market according to your own appetite. Similar to the market capital of the Coin. If you want to manipulate the market you need the supply at least a reasonable amount as in the case of BTC if you want to manipulate the market in situations like now you need at least 20K BTC to 30K BTC. 

For the answer to your query, I think no whales ever trade like that, even most of whales are considered as the long term holders.
hero member
Activity: 2954
Merit: 796
August 19, 2023, 11:06:38 AM
#3
does institutions trade like this? :
like buying futures long position(leverages) at $10 and driving spot price(by huge capital) to upwards like something about $10.5 and selling futures at $10.5 and making profits because of leverage.

do institutions or whales trade like that?

Future price on exchange is not related on spot trading price. They different orderbook volume that's why future price sometimes have a higher or lower price than spot market in case of volatility on the spot.

But I believe that manipulation is indeed happening on futures trading because of the random price swing just to liquidate open position. We can't confirm this since exchange is not regulated and probably the reason why some exchange doesn't want a full audit.
legendary
Activity: 1652
Merit: 1208
Gamble responsibly
August 19, 2023, 11:01:04 AM
#2
You mean for example an institution to buy bitcoin at $26000 in spot market, manipulating the price to go higher, open long position in the derivative market with 2x leverage or more so that they can gain more?

Bitcoin market is not easily manipulated and I do not think institutions can think that way if they do not want to lose and see unexpected things to happen.
full member
Activity: 448
Merit: 225
August 19, 2023, 10:40:28 AM
#1
does institutions trade like this? :
like buying futures long position(leverages) at $10 and driving spot price(by huge capital) to upwards like something about $10.5 and selling futures at $10.5 and making profits because of leverage.

do institutions or whales trade like that?
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