Bitcoin trading guide

Bitcoin exchange that I use:

Bitfinex
Bitmex

Bitcoin trading topics:

Bitcoin Futures trading:

ibankbitcoins' stories:

Charting:
http://www.bitcoincharts.com/charts
https://bitcoinwisdom.com/markets/bitfinex/btcusd

Swap positions for USD and BTC:
http://www.bfxdata.com/swaphistory/usd.php
http://www.bfxdata.com/swaphistory/btc.php

 

Trading Terms:

MTM:
Mark to Market

OCO:
One cancels the other.

We have OCO orders because there are more and more technical and algorithmic trading in which the entry, target and stop losses are determined before the trade.

During rapid market movement, the trader must be certain that target and stop are set already when entering. With OCO order, if target or stop loss is hit, it will cancel the other. This will avoid the scenario where a fast moving market can reverse when you haven't cancel the other order.

Market Price:
Price of OKcoin forward week futures in USD

Ibankbitcoin's Stop:
All my stops are soft, ie alert at that price. I pay close attention at that point, finger on the trigger. I will see how the market reacts, possibly set a hard stop. My exit is usually within 1% of my soft stop. All live trades are recorded on twitter so there will be only be one entry and exit. Why do I not have a hard stop? There is not enough liquidity to catch instantaeously. As another trader says it best

"I don't put hard stop unless I am away and can't watch. I don't use real large order stops because it is licensed to rob you." -Modern Rock

Futures settlement shenanigans:
Futures is a derivative of bitcoin. Therefore, they affect bitcoin prices. Short term traders close this week's position and roll over to other expiry dates. This causes short term price movement that is pretty much unpredictable. Therefore, I wait until after settlement to trade. This is similar to the concept of quad witching day for stocks/futures/options expiry date.