Bitcoin Bears Will Soon Be Able to Short Futures Through Interactive Brokers

"""Shorting bitcoin futures, or betting that their price will fall, is potentially an even riskier strategy. It’s possible to lose an unlimited amount of money on a short position, particularly if the cost of the digital currency and its derivatives continues to climb. """"

I hate to say but this statement is rather erroneous !!!!

should change to:


"""Counter trend trading bitcoin futures, is potentially an even riskier strategy. It’s possible to lose an unlimited amount of money going against the trend, particularly if the cost of the digital currency and its derivatives continues to move in the direction of its momentum. """"
 
also spreading doesn't make sense because the far month contract has very poor liquidity and hence very poor price.

Confirm I wouldn't use IB for btc trading. too much restrictions and hence high chance of loosing tons of money.

luckily there are other brokers which allows outright shorting, though the margin requirement might be rather high.
 
Last edited:
aqtrader said:
when on short, what if bitcoin goes up to 1 million dollars as I just read some bitcoin experts said?
More...

IB would have liquidated their positions long before it got that high. Also futures expire which means at some point in the next few month's you are always forced to liquidiate regardless.
 
aqtrader said:
when on short, what if bitcoin goes up to 1 million dollars as I just read some bitcoin experts said?
More...


It wouldn't happen because before we enter a trade, we already decided what the max amount of loss shall be.
But what we worry is internet disconnect problem,
or exchange traffic jam which causes terrible slippage.

But for kamikaze trader, they will hold on even if bitcoin goes to 1 million dollars.
 
maxinger said:
It wouldn't happen because before we enter a trade, we already decided what the max amount of loss shall be.
But what we worry is internet disconnect problem,
or exchange traffic jam which causes terrible slippage.

But for kamikaze trader, they will hold on even if bitcoin goes to 1 million dollars.
More...

You are missing a key issue. If the underlying shoots up, the futures can gap to limit up and not trade. The underlying can still go higher and higher. Future open next day and gap to limit up an so on. At what point during this limit up scenario were you able to cover your determined max loss.

As for spreads, the contracts have been trading 3 days. If they are successful, liquidity should increase.
 
It's now available. You can short with a $40K margin requirement! You only need a 9K margin to go long. And it's $5/contract.

And don't forget that you need special cryptocurrency trading privileges to trade the bitcoin futures. It can take up to 24 hours for approval. I also have an account with Tradestation and they don't require any special permissions.

Too bad IB isn't gonna make much money off this since the current volumes are outrageously low. Been looking at some daytrades, but the spreads are way too high. Maybe the CME will bring in more traders next week?
 
They do not realize that the more they speculate the price of cryptocurrencies will continue to rise. The market is in full development and now much more than was incorporated by the Chicago stock exchange.
 
You must log in or register to reply here.
Back
Top