Bitcoin Forum

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

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?

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

CME

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!

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.


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

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

?

i believe that the future contract gonna make the price higher and higher !! look at the price now ???!! i can't wait to see how much the price gonna be in 2019 or more . It gonna be huge :p

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 ?

8)

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

I think Bitcoin Future Contract, is an agreement between the buyer and seller in which you bought BTC (the number of btc agreed in the contract) in a specific price no matter what the value of bitcoin is in the future. If the value of bitcoin is higher than the agreed price on the date that you will receive the BTC you bought, then that's the advantage and vise versa as a disavantage.

Ok

there are already two bitcoin products on the stock markets:

certifcates from Vontobel (swiss) and XBT (sweden). much easier to handle than futures.

and there is Payperex.com

It is not recommended to use bitcoin futures contracts unless you have the technology in this area because most of the playing futures contracts are loss-making, a loser's suggestion.
 :(

I hope this will help you a lot.
https://www.wsj.com/articles/bitcoins-future-heres-what-you-should-know-1509475884
The futures contract mean if you are betting on the price of the bitcoin will reach based on your prediction. That means if the price of the bitcoin will be more than your predictiona dan let say if you are predicting about the bitcoin will reach $8000 and if the price of the bitcoin will be more than $8000 let say about $8010 and you will get $10 based on the gap between your prediction and the price of the biitcoin.

Currently future seems to be of Bitcoin Crossing 10k Furthermore cant really be sure about this really crazy fluctuating world of Crypto,While bitcoin futures may be best suited to investors with a large interest in the currency, there are also several arguments why customers should not invest in futures contracts, too.

Is this similar to CFD trading? I used to play around with CFDs at https://1broker.com/  You bet on the market value of the commodity, but you never own it? So no actual bitcoins will be bought, right? If this is the case, I would rather prefer that we strongly support ETFs, where bitcoin are bought and traded within a regulated environment.

What are your thoughts on that?

I don't think getting in a Future contract is a nice idea since bitcoin is really on a appreciation period and continue growing. With Future contracts you will have to agree let's say for example after 5 years you both agree to buy your bitcoin at $10000 but after the target day bitcoin value raise to $20000 in that sense you incurred loss from hedging unless the other thing around happen which I think is quite impossible as I look the bitcoin price today the likely hood that bitcoin will go on appreciation period is much possible than it became stagnant or drop down.

Ok, can you elaborate ?

Futures contracts are standardized contracts that are designed by exchanges and approved for listing by national regulators. The holder of the futures contract may fulfill or cancel the contractual obligation by settling the spot or performing a hedging transaction.
Futures contract refers to the unified contract by the Futures Exchange, the provisions of the future at a particular time and place delivery of a certain amount and quality of the standard contract. It is the object of futures trading, futures trading participants through the sale and purchase of futures contracts in the futures exchange, the transfer of price risk, access to risk returns. Futures contracts are based on spot contracts and spot forward contracts developed, but the essential difference between them is the standardization of the terms of the futures contract. Futures contracts traded in the futures market have standardized the quantity, quality and grade of deliverables, the grade of substations, the standards of premium and discount of substitutes, the place of delivery and the month of delivery, so as to make the futures contract universally characteristic. In the futures contract, only the futures price is the only variable, which is generated by the open auction on the exchange.

mmmm :) ok thanks!

Maybe I'm being unduly pessimistic or cynical but ...

Futures seems to work "fairly" with normal stocks. Futures seem to reflect share price movements.

However, with some assets, namely precious metals, futures are used to manipulate the price. Notably, gold is suppressed because banks make huge puts (sell). On an average day, the number of contracts outweigh total gold production for a year. Settlement of futures is either cash or physical gold, but less than 1% or future contracts result in physical delivery.

With zero interest rates, banks can borrow for free and roll over or buy back at contract expiry, with no risk of loss, and sometimes even make a gain. This is called "wash and rinse".

The result is that gold price is pushed down.

Why is this done, and who benefits?

The actors are the Central banks, who don't want gold prices to rise, because it reflects the falling value of fiat currency. Why, after all, do house prices keep rising? Supply and demand to some extent, but realistically, it's a reflection of falling value of fiat currency vs hard assets. After all, house prices don't lend themselves to price manipulation.

Apologies for the long preamble, but what does this have to do with Bitcoin futures?

Bitcoin is rather like gold. Like gold or house prices, it can reflect the devaluation of fiat currency. This is what Central banks fear most.

BC is money, and unlike fiat currency it cannot be directly manipulated through money printing or withdrawal from circulation.

Until now!

With futures contracts, especially when there is no obligation to deliver actual bitcoins, it's possible to create these huge puts on Bitcoin. Inevitably, this could negatively affect the price.

My fear is that futures trading will be hijacked by banks and central banks to suppress the price of  BC.

Hope I'm wrong.

i have seen no contracts at all but it has proven to many people that even without contract it can make us rich, the only thing that is popping out in my mind trust bitcoin, trust bitcoin because someday things will be easy. I don't care if it's regulated or not but what is important is bitcoin is existing and still be existing.

Lets see

oK

What does it got to do with technology

It is an agreement between the buyer and seller in which they bought btc in a fixed price no matter what the value of bitcoin is in the future. See the bitcoin value right now .its  $7000 hits .. Just imagine what will be the price after some years. You will be in moon. ;)

I think, Bitcoin Futures Contract is Build a good relationship between buyers and sellers.Because Every good business has a basic principle.Buyer vendors want to sell products at a specific profit.Moreover, Bitcoin has now increased prices.

Every Business organization want to make a good relationship with between buyer ans Seller.So I think, Bitcoin want It.Because If any business organization Want to survive with everyone then Its need.No buyer and seller then no business profits or business survive.So I  think, It is bitcoin futures contract.

I think it could force the price lower.

In the CME futures there is no possibility of actual bitcoin delivery. It's just a paper trade - the usual tail wagging the dog

yes you are right I think futures contracts are standard contracts commonly traded on futures exchanges. Futures contracts are made by agreement in the purchase or sale of commodities in the quantity, quality, type, time and place of delivery in the future.

Bitcoin is the real and the positive business because a lot of the small and the high investors are investing in the bitcoin, I am sure the bitcoin will increase more in the value and the people who are being a part of the bitcoin are the real bitcoin user, if you will invest in the bitcoin it is the best feature for the people who are using the bitcoin is the increasing price and the high use of the bitcoin.

Good point

This may well end up being a battle of whales versus the banks with banks trying to drive the price down because Bitcoin is a legitimate and definite threat to their business model, just like they do with gold.

The whales and hedge funds and others will likely try to pump to gain customers. A poster on here had some good points about Bitcoin being tough to short and cited some technical reasons, but I can't remember where it is and won't pretend to know if that is accurate info.

I do think it will attract quite a few investors, but I do worry about the banks and their continuous war against BTC. I'm sure the banks are in collusion and scheming.

So guys, I think that bitcoin also should be audited, but Idk any projects which can provide it :)

Audited? What are you talking about?

Recently,we saw CME announcing that it would release bitcoin futures which triggered the bitcoin price.It is a contract which is cash based.Here bitcoins could be sold and it could be delivered at the expiry date.So,speculators would have a great game to play.Heavy manipulation would take place.

well maybe that can be a worse case scenario that will happen inside crypto industry, if what you have said will happen it will affect the major
part of investors side as more billionaires will paly and crashed out those small investors and manipulate the value of bitcoin, I don't think it will
be a good impact from our end.

I am talking about simple auditing) Like its provided by such companies as PWC or E&Y in "simple" buisness. So maybe there is exist some audit projects on ICO which can provide accounting on ICO projects?) What do you think?

contract for the future, where bitcoin will continue to increase until next year.
 

I heard that the field of the ISO project audit is not yet sufficiently developed, but there are already projects that are ready to deal with this. Check it in Google. ;)

Why are you afraid of an audit? What have you got to hide?

And your trumpcoin will help that? not gonna happen

It seems to me that the experience of Tezos is an excellent example of that an audit of the ICO projects should be conducted without exception, so that all investors are calm for their funds. ;)

Yeah!I heard about Tezos and this is very sad experience and i also think that every ICO projects have to be audited. And i really want to know which company can do this? Thank you!

Guys, I know that IPO has audit. What about ICO? Tell me your opinion about ICO audit reports, please  :)

ICO projects have their own internal audit. But in these reports we can not always see the full information, so it is better for the projects to provide an external audit so that their investors are calm for their savings, so all costs are shown in this reprots etc.

You are talking about darfchain, aren't you?

I agree with you i personally think that bitcoin can go very high because bitcoin is basically the good the choice of humanity i mean that people are very good if they choose bitcoin over anything at all because bitcoin can give you a lot.

I believe that the future contract will make the price higher and higher, look at the price now, i can't wait to see how much the price will be in 2019 or more.

Yes, there are some companies who are ready to audit ICO and DAO. But Bitcoin no need in audit. It is not a project - no any activity inside, just emission and turnover.

A futures contract is when a fork is not yet released and the exchange allows its users to trade "futures" as if it has been released, before the actual release date.

There is no audit that i know off when it comes to ICO and so is the reason some countries are banning it,i am yet to see a complete audit report from any of the ICO i have seen in the past.
If you are aware of the future market it is the exact same thing,we set a price at a future date with delivery set at a future time,the market could swing if there is a huge order and so on,the speculation will be really high and the price could move simply because of the market situation .

I heard that Bitcoin futures contract is provided by CME Group in the middle of December. It will attract many investors and Bitcoin price will raise again

I found platform that give similar solution it called payperex.com

Join this group, and hear what the Crypto expert got to say https://t.me/bitcointoptraders

Check this interesting video https://www.youtube.com/watch?v=o7TtwckPCUI

Check this out https://payperex.com/tokensale/?affiliate_id=1&campaign_id=1&source=RCFB

Kind of agreement that ensures that you will get a certain amount of Bitcoin for a certain price in the future. You can call it's similar to Gold ETF.

I agree. Bitcoin futures contract are for those who believe that bitcoin is a bubble and will burst anytime soon. For us who believes in bittcoin and that it will continue to go higher in a period of time, we don't need this. Losers never win. We'll have to reap the benefits of bitcoin on our own then.

Price movement of BTC became slow after the futures contract went live yesterday.

Futures is a good thing for bitcoin for many reasons, but I give you a practical example:

I want to pay my 50 employees with bitcoins their monthly salary. But the value of bitcoin fluctuates a lot.

With bitcoin futures I can have a fixed price. If the value of the bitcoin goes up or down, it no longer affects me when I pay my employees.

https://i.imgur.com/JmUbUGH.jpg[/img]]https://i.imgur.com/JmUbUGH.jpg (http://[img)

https://payperex.com/tokensale/?affiliate_id=1&campaign_id=1&source=RCFB

The first day of CBOE Bitcoin futures trading went according to plan with the price of Bitcoin even going past $17,000 for the first time Monday.
Checkout here more: https://[Suspicious link removed]/LxkuyW

Check this one : https://payperex.com/tokensale/?affiliate_id=1&campaign_id=1&source=RCFB

The volatility will lower with the futures

for me it’s escrow that bitcoin have value and can be used as payment system.

simple it is agreement you can pay using bitcoin

ok

Bitcoin future is bigger and brighter without be told because it's encouraging it keeps growing all day which gives all members the greatest hope about the future all thanks the technologist and bitcoin inventors God bless you all.. (Amen)

a little more I add your answers, and people who do future contractual agreements ahead bitcoin will continue to benefit greatly from bitcoin. because every day the bitcoin value rises.

The bitcoin future is one of the reason in the rise of BTC,the whales involve are adding value to the world of cryptocurrency.

You need to read this one http://www.newsbtc.com/2017/12/18/payperex-bitcoin-disrupting-blockchain-status-quo/

To put it simply, it is a deal wherein it is arranged that the customer will buy bitcoins in a period of time in the future. It will be a good way to experiment seeing the values.

Hello,
This is a short and easy example of how futures work:
let's say you think the price of some coin (A), which is currently $ 50, will grow to $ 100 for two months.
Someone offers you the option to accept $ 80 for A after two months. You accept, which means you have just bought a futures contract.
If you guess, you'll pay $ 80 for something worth $ 100. However, if you are wrong and the price is lower, then you will pay more than A costs in the market and you will not be satisfied.
Also, if you think A will fall cheaper, you can "sell" a futures contract - you agree to deliver A after two months at a price, say 80 dollars. When that time comes, you buy A at the market price and deliver it to the contract holder against the promised amount.
If you are right and the market price is less than $ 80, you have earned a profit.

I hope I've been useful to you :)

Thanks it was!

Bitcoin futures contract is securing a number of btc that you want to use. You benefit by buying them for less compared to how they value later on.

No, it's no the case

The contracts are used for you to purchase Bitcoins in the future. It can either be bigger or smaller, depending on the trend. But, for sure, it is something to secure you.

Just keep it simple, the PayperEx solution is much more user friendly. I bought the PAX token and going to spread my investment there. U should check it out if U in to trading https://payperex.com/postsale/

They are running Crypto Index campaign now

I'm confused from one thing, why so many people claim that bitcoin futures haven't an influence on the price of Bitcoin. Let's take a look on this example. Let's assume that I have a lot of dollars and I'm active on crypto exchanges as well as for instance, on CBOE. One day banks say themselves, okay what will do and begin to short bitcoin futures thanks to their billions of dollars. When you look at prices on exchanges you'll see increasing gap (let's say the price on exchange doesn't move down yet). In the moment a person A (who owns bitcoins) start to sell bitcoins on exchange and meanwhile buy futures/option/cfd and thanks to gap between prices, the person A will get profit after paying commissions and fees (the gap between prices must be enough large). The person A didn't lose own portfolio of bitcoin just made a profit this action and result is, that bitcoin price goes down on exchanges as well. Person B hasn't own any bitcoin just has dollars on exchanges. The person B begin to short Bitcoin via margin because the person B see the gap between prices of futures and spot. Result is the same, the price of Bitcoin goes down. This case is for those who want to have the same amount of bitcoin in their portfolio, the second group which is initial impulse for this move are aggressive traders/banks which get profit from net shorts because they know how this game is played. Well, this is mechanism how bitcoin futures influent the spot price of Bitcoin. If you disagree or have something to point out, let's take a look closer.

Interesting point

I think that bitcoin also should be audited, but Idk any projects which can provide it Smiley

December 2017 Bitcoin began to appear with the group on Forex brokers of the world the appearance of futures on the Chicago stock exchange caused even more interest. The largest PIF includes crypto-currencies in its portfolios.

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The use of futures for trading with bitcoin does not mean the actual sale or purchase of BTC, but only the impact on the change in the exchange rate of the crypto currency by changing the demand for it.
For owners of tangible assets, price stability is important, in which one can be confident in advance; for them, futures contracts are important as a form of insurance against particularly unfavorable prices that may arise in the future.

I did not see the contract net future bitcoin but I'm sure that the future netco bitcoin and It will be a good way to experiment seeing the values.

 It is said that the consortium of Chinese miners has already exceeded this bar. In my opinion, this greatly undermines the possibilities of bitcoin to become a world currency.