What is Bitcoin Futures (Bitcoin Futures Market)?
What is Bitcoin Futures? What is Bitcoin Futures? What is Bitcoin Futures? A ne
What is Bitcoin Futures? What is Bitcoin Futures?
What is Bitcoin Futures?
A new report from the Chicago Board Options Exchange (Cboe) in the cryptocurrency trading field shows that Bitcoin futures is a regulated product. It is called a “derivative” because its market participants typically have fixed time, capital, and liquidity to hedge risks. The platform will settle contracts in cash, meaning that investors can trade with these assets. Bitcoin futures is completely different from spot trading. According to CBOE data, as of Wednesday, February 8th, CME’s BTC perpetual swap product accounted for only about 1% of the total trading volume. (Cointelegraph)
CME is a US broker that offers leverage trading services. It is the first company to launch Bitcoin futures products, and the company stated, “Currently, no other companies are using Bitcoin futures.” In addition, CME also offers various forms of options, some of which include: delivery futures (Optional Short-Monthly) for the S&P 500 index fund; financial instruments such as stocks/bonds, foreign exchange, or precious metals; and options similar to Nasdaq’s stocks.
Why create a Bitcoin futures contract?
When you buy Bitcoin, you need to pay margin, but if the Bitcoin price is higher than the current exchange rate, you can profit by selling Bitcoin to the buyer or seller without the obligation of margin. To ensure the security of your investment portfolio, we need to determine how much Bitcoin you want to hold and whether the price you want to buy is reasonable. If you are not ready to buy Bitcoin, you cannot continue to invest in Bitcoin. However, if you want to have Bitcoin exposure, consider the following points: 1. Bitcoin is not backed by the US dollar, but by physical gold; 2. Bitcoin cannot be manipulated. Since Bitcoin itself is real, its volatility and value are driven by actual sources. 3. Most people think of Bitcoin as a commodity rather than a speculative asset. For example, when Bitcoin reaches $50,000, people may view it as something digitally scarce (like real estate), artwork, or some alternative item, etc. Conversely, they tend to store them in a custodial service to make this wealth marketable. 4. The “non-variable inflation” feature makes Bitcoin more suitable for long-term holders’ strategies. However, there are also many factors hindering the development of Bitcoin, including its price trends, increasing traders’ interest, and the approval process for Bitcoin ETFs. “In some cases, Bitcoin’s performance is like a small bet in the stock market, but despite this, I still believe it’s something that could happen in the next few years,” said Thomas Vuckey, a Bitcoin developer. “Bitcoin is not truly a currency,” but he added, “It’s exciting news.”
Bitcoin Futures Market
According to bitcoinexchangeguide, the CME Bitcoin futures contract market experienced explosive growth at the beginning of this week. As of the early morning of March 19th, the trading volume of CME’s Bitcoin options was $200 million. This number has decreased compared to the past few quarters. However, these exchanges still dominate a significant portion of the market due to the increasing interest of institutional investors and large hedge funds in the market and the recent increase in price volatility.
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