trading futures by manupulating spot.

[Captain Corporate]

Without any substantial proof, I think it doesn't make sense to come to any conclusion at all. This is still illegal, even if its crypto, you could still sue the people who do it if you have concrete proof. For example, lets take an American for example, if an American whale ends up doing something like this, you could take them to court, and provide proof with data that they have knowingly manipulated the market, and if you do have the proof enough for a judge to agree with you, then they will get a huge fine, depending on the size, even jail time. This feels like I do not think any whale would want to take that risk but even if there are any out there, we need some proof.

[1714832830]

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[adaseb]

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?

No because when they buy using leverage there is usually some market maker that takes the opposite trade. So he is hedging and if there are enough orders it’ll basically cancel each other out.

If someone buys a billion worth of BTC on futures using 10 million of collateral some market maker needs to hedge that position by also buying 1 billion worth in spot. So basically it would cancel out.

[el kaka22]

Hmm.. sort of? I mean we can't really know if they are doing it or not, we do not have any type of confirmation regarding if they ever did it, and we should realize that it is not a simple thing to expect people to do something like that.

I think we should be considering the chance to be something a lot better, it should be possible and we could have done it. I am not going to just guess that it would be profitable, and I think it should be important to remember that these people are rich, so they are probably doing it and have the possibility  and the power and the money to do it. This doesn't mean they are doing it, like I said there is no proof about it, but at the very least we can say that it is something that is possible.

[Oshosondy]

It's not manipulation, it's hedging. Since institutions manage big funds and large amounts of money, every order they make creates a massive reaction in the fluctuation in price. They short in certain rice points and then also buy to regain back their losses. As their orders are pouring in, retail traders would also put up their orders that's where institution takes away the money of normal and retail traders.

This is the reason you should trade well established coins like bitcoin which its price cannot be easily manipulated. The second thing is that if you are a good trader, you will not think about this but think about using a well formulated strategies to make money from trading through technical analyses. Traders that are losing are the ones that do not know much about trading, even they are just losing even if there is no manipulation.