Hey, someone know what is Bitcoin Futures Contract? and what will be the advantages of buying it?
Thanks!
Also noticed that there is project called payperex.com doing something similar
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