Oliedric, I am not rooting for Futures Contract as a Speculative Instrument at all. It is not for the Short Term at all. Futures contracts came into being as a protective instrument to guard against volatility in the 60s for the Farmers.
I strongly believe that this will be a brilliant Balancer and reduce Speculation which to my limited understanding. Long-term holding will be encouraged if the ones that plan to hold on to the Token for long are able to offset the losses through a reverse position in Future contracts. Since the Futures contracts are leveraged instruments, the profits as a % of investment are far higher and hence encourages long-term holding.
Topic: Time for Futures Contracts for Cryptos. (Read 124 times)
Time bound contracts might be a good thing for the people who are willing to be in the market for a long time. The market is highly volatile and this might turn out to be good.
For short time investment, it's a good deal. But what about people who are holding bitcoin for too long and also looking for long term?
Time-bound contracts can be a good thing for investors in long term in this highly unstable market of crypto.
Time bound contracts might be helpful in the long term. Many people are hoarding cryptos and affecting the market, this could be one of the solutions.
Agree with Fenderr on the difficulty in including ALL Cryptos into Futures. Adoption and Volumes will be the determinants. We do not wish to PENNY CRYPTOS in this space for sure. The thought needs to go beyond BTC and ETH to start with. With great Platforms and wonderful Projects with Utility for its tokens, a greater and more inclusive process would be the calling soon.
Please share your thoughts, even if they are contrarian. That is the best way to arrive at the best solution.
Please share your thoughts, even if they are contrarian. That is the best way to arrive at the best solution.
The way I understand HEDGE (considering the Crypto tokens are used for trading) is taking an opposite position in the Derivative market to my holding. The risk here (provided a provision of SL is available) is to the extent of a reverse movement. With due regard to your perspective, Crypto markets have a direct correlation to the Currency ones an hence, it can not be dissociated if it needs to emerge as an alternative asset class.
I am really sorry if I have missed the ones that offer vibrant Futures instruments. I shall be grateful (and I believe so would several others) if you could direct us to the mature exchanges that offer this tool.
The point of reduction in volatility would come by once the factors like Intrinsic volatility, time to expiry, greeks etc determine the prices rather than sentiments and perceptions.
The factors of price determination like PE ratios will not work for the Cryptos as the technology frees itself from all sorts of centralization but I would like to humbly seek a clarification on the Community management and determination prices on scientific parameters like GAS PRICES and that is technology driven.
Let us discuss this further and try to build a CONSENSUS!
I am really sorry if I have missed the ones that offer vibrant Futures instruments. I shall be grateful (and I believe so would several others) if you could direct us to the mature exchanges that offer this tool.
The point of reduction in volatility would come by once the factors like Intrinsic volatility, time to expiry, greeks etc determine the prices rather than sentiments and perceptions.
The factors of price determination like PE ratios will not work for the Cryptos as the technology frees itself from all sorts of centralization but I would like to humbly seek a clarification on the Community management and determination prices on scientific parameters like GAS PRICES and that is technology driven.
Let us discuss this further and try to build a CONSENSUS!
BTC has been trading in the futures market (CME and CBOE platforms) for quite a while now, and ETH hoping to join in soon. it would be difficult to have Futures contract for all cryptos in my opinion.
With highly volatile prices, we MUST have genuine Futures Contracts (time-bound) for Crytos. These can be useful as a hedging tool.
First of all such instrument is already used. For a long time by the way.Secondly, how could futures curb volatility? If you remember the acceptance of futures increased volatility instead of curb it and pulled up the price.
And I should mention that searching this "hedge" thing in crypto is not the best idea. It would be better if you search for crypto in crypto, and search hedge outside this market
With due respect to everyone, I have checked the existing Futures contracts. They claim to be so but are work in progress. Ones, claiming to offer Margin trading, have to evolve as a product. Concepts of MTM are at a very nascent state as of now.
Please also note that the Futures contract would lend more logic to the volatility and sentiments will hold lesser sway.
And the Community will need to think beyond BTC and ETH. The utility of tokens would determine the prices as the markets mature. Though it is some distance away.
Will look forward to more enlightening thoughts and views in this space.
Please also note that the Futures contract would lend more logic to the volatility and sentiments will hold lesser sway.
And the Community will need to think beyond BTC and ETH. The utility of tokens would determine the prices as the markets mature. Though it is some distance away.
Will look forward to more enlightening thoughts and views in this space.
I think the proposals regarding futures contracts have been given by several parties to the SEC, but until now no one has been accepted or allowed. Are futures contracts required or needed? Do you know that bitcoin has survived all this time and bitcoin never needs it, investors and traders can always get profit without a futures contract. So, does the futures contract have to be a top priority?
Well i think futures are already online and trading for btc and as far as eth is concerned the futures contract will start in the coming months as the listing and approval is under process which is expected to complete in few weeks, eth is also coming up with upgrade this month so we can expect positivity.
What you guys are talking here about?
Last year were introduced Bitcoin futures on CME and CBOE platform. So you can actually trade on these platforms.
But I would prefer own Bitcoin than only trade "Bitcoin" which you do not personally own.
Last year were introduced Bitcoin futures on CME and CBOE platform. So you can actually trade on these platforms.
But I would prefer own Bitcoin than only trade "Bitcoin" which you do not personally own.
Yes,I agree with you. You should have future contracts for cryptos. These will be useful for this market.
Feature contracts for cryptos seem like an unrealistic idea. The volatile nature of the crypto market will always crash with the feature and the result will not be very pleasant.
With highly volatile prices, we MUST have genuine Futures Contracts (time-bound) for Crytos. These can be useful as a hedging tool.
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