Topic: how do bitcoin futures contract work? (Read 162 times)
Good you learnt yourself otherwise I was about to explain you.
I now understand how these contracts work after watching a video about them.
Can anyone explain how the cme futures work. I didn't know anything about futures before this and i seem to be reading conflicting information on them.
The CNBC guy in the following link seems to be saying i would buy a contact at the current price and could set a SL and TP. It's done on 5 coins so any up or down is multiplied by 5. This to me is exactly the same as a cfd with 5x leverage. Is this not the case?
https://www.c[Suspicious link removed]m/2017/12/15/bitcoin-futures-are-about-to-get-another-big-boost.html
The other explanation i've seen is that i would agree to pay a certain amount for a bitcoin in the future. So say the current price is $20,000. I would agree that at the end of the month i would pay $22,000 for a bitcoin. If the price is $24,000 on this date i would make $2,000 and the person on the other side of the contract who is shorting bitcoin would lose $2,000.
The CNBC guy in the following link seems to be saying i would buy a contact at the current price and could set a SL and TP. It's done on 5 coins so any up or down is multiplied by 5. This to me is exactly the same as a cfd with 5x leverage. Is this not the case?
https://www.c[Suspicious link removed]m/2017/12/15/bitcoin-futures-are-about-to-get-another-big-boost.html
The other explanation i've seen is that i would agree to pay a certain amount for a bitcoin in the future. So say the current price is $20,000. I would agree that at the end of the month i would pay $22,000 for a bitcoin. If the price is $24,000 on this date i would make $2,000 and the person on the other side of the contract who is shorting bitcoin would lose $2,000.
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