Bitcoin Futures Contract - page 5. | Bitcointalksearch.org

Georgeberg

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Quote from: legenduim on November 02, 2017, 08:54:11 AM

CME Group plans to launch Bitcoin Futures contract close to the end of this year.
The company assures everybody that this decision is not connected with the fast growth of BTC. Meanwhile, the project future is still vague and it is early to understand its advantages.

yes

legenduim

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CME Group plans to launch Bitcoin Futures contract close to the end of this year.
The company assures everybody that this decision is not connected with the fast growth of BTC. Meanwhile, the project future is still vague and it is early to understand its advantages.

Georgeberg

newbie

Activity: 112

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Quote from: Ahmed28 on November 01, 2017, 04:39:31 AM

i believe that the future contract gonna make the price higher and higher !! look at the price now Huh

!! i can't wait to see how much the price gonna be in 2019 or more . It gonna be huge :p

Georgeberg

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Activity: 112

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Quote from: krishnapramod on November 01, 2017, 05:40:41 AM

Quote from: Georgeberg on November 01, 2017, 03:32:32 AM

Quote from: krishnapramod on November 01, 2017, 03:28:38 AM

Quote from: Georgeberg on November 01, 2017, 02:55:37 AM

Quote from: panju1 on November 01, 2017, 02:52:38 AM

Quote from: Georgeberg on November 01, 2017, 02:41:02 AM

Hey, someone know what is Bitcoin Futures Contract? and what will be the advantages of buying it?

Thanks!

It is agreement to buy Bitcoins at a future date at a certain price. If you think that Bitcoin will move up massively, then you can enter into futures. The advantage is of leverage. By giving a small amount of margin money, you can take higher exposure to Bitcoin prices.

So I don't really buy the Bitcoin? the contract has Expiry time?

No, you really don't buy Bitcoin. Yeah, contracts have expiration time. Futures contract is settled either via physical delivery or cash. The Bitcoin futures contract by CME will be cash-settled and based on the CME Bitcoin Reference Rate (BRR). The reference rate is a daily settlement price published at 4 p.m. London time, currently noon ET.

Quote

Cash Settlement is a method of settling forward contracts or futures contracts by cash rather than by physical delivery of the underlying asset. The parties settle by paying/receiving the loss/gain related to the contract in cash when the contract expires.

https://en.m.wikipedia.org/wiki/Futures_contract

So what are the advantages to buy this contracts rather than to buy Bitcoin? Thanks!

Legitimacy, leverage, liquidity, three advantages. CFTC approved Bitcoin futures would give horde of professional traders the opportunity to bet against Bitcoin's volatility without really buying it in a highly legit/regulated environment. Cash-settled rather than physical delivery, it might create a secondary market with artificial scarcity.

We don't know if CFTC is going to approve this. If approved, cash settlement means cutting the cost of hedging, would CMC trade Bitcoin futures without holding any actual Bitcoin? Don't know. If a secondary futures market emerges would it supress Bitcoin market, don't know. Would this be a crucial step towards a Bitcoin ETF, don't know. This might turn out to be good or bad.

I just came across some Altcoin project called Payperex, seems like the Idea is similar to the CME but with no expiry. you buy "bitcoin paypers" (shares) and you can profit if bitcoin goes up or down (you can hedge). any thoughts ?

krishnapramod

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Activity: 1470

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Quote from: Georgeberg on November 01, 2017, 03:32:32 AM

Quote from: krishnapramod on November 01, 2017, 03:28:38 AM

Quote from: Georgeberg on November 01, 2017, 02:55:37 AM

Quote from: panju1 on November 01, 2017, 02:52:38 AM

Quote from: Georgeberg on November 01, 2017, 02:41:02 AM

Hey, someone know what is Bitcoin Futures Contract? and what will be the advantages of buying it?

Thanks!

It is agreement to buy Bitcoins at a future date at a certain price. If you think that Bitcoin will move up massively, then you can enter into futures. The advantage is of leverage. By giving a small amount of margin money, you can take higher exposure to Bitcoin prices.

So I don't really buy the Bitcoin? the contract has Expiry time?

No, you really don't buy Bitcoin. Yeah, contracts have expiration time. Futures contract is settled either via physical delivery or cash. The Bitcoin futures contract by CME will be cash-settled and based on the CME Bitcoin Reference Rate (BRR). The reference rate is a daily settlement price published at 4 p.m. London time, currently noon ET.

Quote

Cash Settlement is a method of settling forward contracts or futures contracts by cash rather than by physical delivery of the underlying asset. The parties settle by paying/receiving the loss/gain related to the contract in cash when the contract expires.

https://en.m.wikipedia.org/wiki/Futures_contract

So what are the advantages to buy this contracts rather than to buy Bitcoin? Thanks!

Legitimacy, leverage, liquidity, three advantages. CFTC approved Bitcoin futures would give horde of professional traders the opportunity to bet against Bitcoin's volatility without really buying it in a highly legit/regulated environment. Cash-settled rather than physical delivery, it might create a secondary market with artificial scarcity.

We don't know if CFTC is going to approve this. If approved, cash settlement means cutting the cost of hedging, would CMC trade Bitcoin futures without holding any actual Bitcoin? Don't know. If a secondary futures market emerges would it supress Bitcoin market, don't know. Would this be a crucial step towards a Bitcoin ETF, don't know. This might turn out to be good or bad.

Ahmed28

newbie

Activity: 47

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i believe that the future contract gonna make the price higher and higher !! look at the price now Huh

!! i can't wait to see how much the price gonna be in 2019 or more . It gonna be huge :p

Georgeberg

newbie

Activity: 112

Merit: 0

Quote from: Georgeberg on November 01, 2017, 03:32:32 AM

Quote from: krishnapramod on November 01, 2017, 03:28:38 AM

Quote from: Georgeberg on November 01, 2017, 02:55:37 AM

Quote from: panju1 on November 01, 2017, 02:52:38 AM

Quote from: Georgeberg on November 01, 2017, 02:41:02 AM

Hey, someone know what is Bitcoin Futures Contract? and what will be the advantages of buying it?

Thanks!

It is agreement to buy Bitcoins at a future date at a certain price. If you think that Bitcoin will move up massively, then you can enter into futures. The advantage is of leverage. By giving a small amount of margin money, you can take higher exposure to Bitcoin prices.

So I don't really buy the Bitcoin? the contract has Expiry time?

No, you really don't buy Bitcoin. Yeah, contracts have expiration time. Futures contract is settled either via physical delivery or cash. The Bitcoin futures contract by CME will be cash-settled and based on the CME Bitcoin Reference Rate (BRR). The reference rate is a daily settlement price published at 4 p.m. London time, currently noon ET.

Quote

Cash Settlement is a method of settling forward contracts or futures contracts by cash rather than by physical delivery of the underlying asset. The parties settle by paying/receiving the loss/gain related to the contract in cash when the contract expires.

https://en.m.wikipedia.org/wiki/Futures_contract

So what are the advantages to buy this contracts rather than to buy Bitcoin? Thanks!

?

Georgeberg

newbie

Activity: 112

Merit: 0

Quote from: krishnapramod on November 01, 2017, 03:28:38 AM

Quote from: Georgeberg on November 01, 2017, 02:55:37 AM

Quote from: panju1 on November 01, 2017, 02:52:38 AM

Quote from: Georgeberg on November 01, 2017, 02:41:02 AM

Hey, someone know what is Bitcoin Futures Contract? and what will be the advantages of buying it?

Thanks!

It is agreement to buy Bitcoins at a future date at a certain price. If you think that Bitcoin will move up massively, then you can enter into futures. The advantage is of leverage. By giving a small amount of margin money, you can take higher exposure to Bitcoin prices.

So I don't really buy the Bitcoin? the contract has Expiry time?

No, you really don't buy Bitcoin. Yeah, contracts have expiration time. Futures contract is settled either via physical delivery or cash. The Bitcoin futures contract by CME will be cash-settled and based on the CME Bitcoin Reference Rate (BRR). The reference rate is a daily settlement price published at 4 p.m. London time, currently noon ET.

Quote

Cash Settlement is a method of settling forward contracts or futures contracts by cash rather than by physical delivery of the underlying asset. The parties settle by paying/receiving the loss/gain related to the contract in cash when the contract expires.

https://en.m.wikipedia.org/wiki/Futures_contract

So what are the advantages to buy this contracts rather than to buy Bitcoin? Thanks!

krishnapramod

legendary

Activity: 1470

Merit: 1079

Quote from: Georgeberg on November 01, 2017, 02:55:37 AM

Quote from: panju1 on November 01, 2017, 02:52:38 AM

Quote from: Georgeberg on November 01, 2017, 02:41:02 AM

Hey, someone know what is Bitcoin Futures Contract? and what will be the advantages of buying it?

Thanks!

It is agreement to buy Bitcoins at a future date at a certain price. If you think that Bitcoin will move up massively, then you can enter into futures. The advantage is of leverage. By giving a small amount of margin money, you can take higher exposure to Bitcoin prices.

So I don't really buy the Bitcoin? the contract has Expiry time?

No, you really don't buy Bitcoin. Yeah, contracts have expiration time. Futures contract is settled either via physical delivery or cash. The Bitcoin futures contract by CME will be cash-settled and based on the CME Bitcoin Reference Rate (BRR). The reference rate is a daily settlement price published at 4 p.m. London time, currently noon ET.

Quote

Cash Settlement is a method of settling forward contracts or futures contracts by cash rather than by physical delivery of the underlying asset. The parties settle by paying/receiving the loss/gain related to the contract in cash when the contract expires.

https://en.m.wikipedia.org/wiki/Futures_contract

bitcoinmining

sr. member

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Soon these future contracts will take us to the moon! Look at that price now it's $6400, I can't imagine how much will it be in 2018!

Georgeberg

newbie

Activity: 112

Merit: 0

Quote from: haallloo on November 01, 2017, 03:18:38 AM

Quote from: panju1 on November 01, 2017, 02:52:38 AM

Quote from: Georgeberg on November 01, 2017, 02:41:02 AM

Hey, someone know what is Bitcoin Futures Contract? and what will be the advantages of buying it?

Thanks!

It is agreement to buy Bitcoins at a future date at a certain price. If you think that Bitcoin will move up massively, then you can enter into futures. The advantage is of leverage. By giving a small amount of margin money, you can take higher exposure to Bitcoin prices.

I don't even know about it. Who offers these contracts?

CME

haallloo

newbie

Activity: 49

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Quote from: panju1 on November 01, 2017, 02:52:38 AM

Quote from: Georgeberg on November 01, 2017, 02:41:02 AM

Hey, someone know what is Bitcoin Futures Contract? and what will be the advantages of buying it?

Thanks!

It is agreement to buy Bitcoins at a future date at a certain price. If you think that Bitcoin will move up massively, then you can enter into futures. The advantage is of leverage. By giving a small amount of margin money, you can take higher exposure to Bitcoin prices.

I don't even know about it. Who offers these contracts?

Georgeberg

newbie

Activity: 112

Merit: 0

Quote from: panju1 on November 01, 2017, 02:52:38 AM

Quote from: Georgeberg on November 01, 2017, 02:41:02 AM

Hey, someone know what is Bitcoin Futures Contract? and what will be the advantages of buying it?

Thanks!

It is agreement to buy Bitcoins at a future date at a certain price. If you think that Bitcoin will move up massively, then you can enter into futures. The advantage is of leverage. By giving a small amount of margin money, you can take higher exposure to Bitcoin prices.

So I don't really buy the Bitcoin? the contract has Expiry time?

panju1

legendary

Activity: 1246

Merit: 1000

Quote from: Georgeberg on November 01, 2017, 02:41:02 AM

Hey, someone know what is Bitcoin Futures Contract? and what will be the advantages of buying it?

Thanks!

It is agreement to buy Bitcoins at a future date at a certain price. If you think that Bitcoin will move up massively, then you can enter into futures. The advantage is of leverage. By giving a small amount of margin money, you can take higher exposure to Bitcoin prices.

Georgeberg

newbie

Activity: 112

Merit: 0

Hey, someone know what is Bitcoin Futures Contract? and what will be the advantages of buying it?

Thanks!
Also noticed that payperex (www.payperex.com)com doing something similar

Topic: Bitcoin Futures Contract - page 5. (Read 1617 times)