A when futures contracts have been set, both parties must accept buy and sell at the price agreed before that, regardless of the external market price situation has transformed how at the maturity date of the contract.
1. Future transactions (also known as spot trading after)?
The goal is not necessarily to maximize profits. Trading futures is a risk control tools, often used in financial markets to protect investors from the risks due to fluctuations in the price of a property often buy and sell transactions daily.
Trading futures is also often used in the portfolio package to balance the volatility of the business if the value of the asset is included in it or fluctuating up and down swings.
The model contract as on negotiations and deals go on sale again on a future contract trading, acts as the medial side.
2. Active futures contracts?
There are two locations you can choose when to join futures contracts: it is bought (long) and sells (short).
If you choose to buy, you agree to purchase a property in the future at a fixed price when the contract to date. Conversely, if you choose to sell, you accept to sell the property at the agreed price when the contract matures.
However, besides that there are also many investors will use the futures contracts as a speculative tool, instead of using them as methods of protection.
They will try to buy if the price is low. Then, when price increases gradually, the value of the contract becomes higher, investors can choose to exchange it for another person to take the money before contract maturity.
3. The contract future is Bitcoin?
Futures contracts can be used not only for physical assets but also can carry out to trading financial asset.
With future Bitcoin transactions form, the value recorded in the contract will be based on the price and from which speculators Bitcoin can "bet" based on their beliefs about the Bitcoin will increase how to reductions when the contract matures.
Besides, it allows investors to infer values Bitcoin but need not actually owned this e-currency.
Therefore, 2 large results occur:
One is, however, not yet been regulated, Bitcoin futures contract Bitcoin can carry trades on the stock trading floor was licensed. This is very good news for those who still fear before choosing to join the market because market capital Bitcoin Bitcoin completely lack supervision by the authorities.
Two is that, in the area where the Bitcoin transactions completely prohibited, future contract form can still allow investors to observe the value of the currency.
4. Future active Bitcoin contract like?
Futures contract Bitcoin will work the same principle as with traditional financial assets.
Through the anticipated material price BTC will up or down, the speculators will buy or sell options contracts Bitcoin his future.
5. Futures contracts make sense of how a price of Bitcoin?
In the short term, it could help push the price and increase the public's excitement for the field of electronic money.
On the day that a futures contract Bitcoin was first deployed on the floor of the CBOE-equities trading floor is America is licensed and full management, the price has soared 10% to $16.936 level.
The long-term impact is difficult to predict the price up, but overall, the price of Bitcoin will still have the power to raise prices.
6. More likely in the coming period, the price will continue to go up Bitcoin?
There are a number of reasons explain the ability on.
Because futures contracts Bitcoin is deployed on the mass floor management, it gives those previously skeptical about capital Bitcoin when nobody would help to increase the value of it, the confidence to invest.
Investment institutions from which will start contract solicitation Bitcoin client to the future as viable investment projects.
It offers much more liquidity to the market, help people to easily buy and sell and exchange electronic money more, thereby making this area easy to make Word more in the eyes of investors.
It is open to a large number of Bitcoin market investors, including those countries that had previously barred the door money.
Because futures contracts are designed to balance the volatility or happen to property type is in it, it also partly resulted in less erratic fluctuations than the Bitcoin.
7. Implications for the entire industry of Bitcoin
There is a few end up as follows.
First, Bitcoin supposedly represents the face of electronic money. So, if the price of Bitcoin surprise spike in just a short period of time, because the contract or future Bitcoin regardless of any other factors, more and more people will pay attention to.
When that rate of interest to the industry of electronic money increase, the price of the altcoin will also be beneficial and drag both the market go up.
However, there is also the reverse: investors may want to sell all of his altcoins to move through the purchase of Bitcoin, arrest its strong growth momentum. The rush massively can do severe price slump altcoin segment.
The prospect has a higher probability that the altcoin have a foothold as Ethereum, Ripple, and Litecoin, ... will continue and become the Bitcoin property type traded on the floor of the future, once the excitement of investors for them to become big enough.
8. Can trade futures Bitcoin?
Currently, exist two separate market allows you to buy and sell contracts Bitcoin future.
The first approach is on the electronic money transactions have provided services on as OKCoin or BitMEX. The flooring has introduced this new type was quite long but didn't get much attention.
The second option is to proceed to public trading has been managed. This method just appeared recently and is one of the main reasons causing the Bitcoin constantly peaked in the month of 12/2017.
All CBOE events beginning with the launch of futures contracts on Bitcoin 10/12 (0h00 day 11/12 according to Vietnam now). A great brand is the CME has also deployed this service today. Besides, a number of other financial institutions such as the Nasdaq, JPMorgan Chase, and TD Ameritrade has also expressed a desire to be involved in contract market Bitcoin lucrative future and this potential.