Buying Bitcoin Futures Contracts?

[iamTom123]

There is a big buzz right now within and without the Bitcoin community and it is called Bitcoin Futures. What is this futures?
A futures contract is a tool and a strategy to hedge positions and reduce the risk of the unknown. It is also used for arbitrating between current spot and future contracts. The Chicago Board Options Exchange (CBOE) just launched the first futures market for Bitcoin beating CME which will launch their version on the 18th. Of course, there are already more finance organizations which announced their intention to also join the futures business by next year.

The introduction of the futures signals the start for the legitimization process for Bitcoin --  where people from the Wall Street can converge with those in the Main Street, so to speak. I am hoping that this platform will also be available to small players like us and not just for the whales who have the big resources they can play with anytime. As this sounds really interesting and maybe also profitable, would you be interested to buy a Bitcoin Futures contract?



     

[TheQuin]

Futures trading is available to small traders, you just need to open an account with a futures broker. There are strict KYC and AML rules and you will need to have to meet a minimum account balance, but that varies significantly from broker to broker. The rates of commision charged can also vary widely and are usually negotiable so you will need to do some research before you start.

[squatter]

The introduction of the futures signals the start for the legitimization process for Bitcoin --  where people from the Wall Street can converge with those in the Main Street, so to speak. I am hoping that this platform will also be available to small players like us and not just for the whales who have the big resources they can play with anytime.

Some brokers might require accredited investor status, but I'm pretty sure CBOE contracts are available on platforms like Interactive Brokers. It's a far cry from the days when anyone could anonymously fund an account with $5 or $10, though. I guess we can't really act surprised with Bitcoin trading above $10,000 now.

Wall Street whales definitely have more cash to play with, but since these futures markets are cash-settled, there is little room for manipulation. They are mostly useful for hedging exposure for company operations (Square Cash comes to mind).

As this sounds really interesting and maybe also profitable, would you be interested to buy a Bitcoin Futures contract?

I'm more interested in ETF offerings, personally. I can't wait until it's easier to roll Bitcoin investments into my retirement account.

[dominikas18]

http://static4.businessinsider.com/image/5200e18aecad04665800001e-2048/rtrtgxd.jpg

There is a big buzz right now within and without the Bitcoin community and it is called Bitcoin Futures. What is this futures?
A futures contract is a tool and a strategy to hedge positions and reduce the risk of the unknown. It is also used for arbitrating between current spot and future contracts. The Chicago Board Options Exchange (CBOE) just launched the first futures market for Bitcoin beating CME which will launch their version on the 18th. Of course, there are already more finance organizations which announced their intention to also join the futures business by next year.

The introduction of the futures signals the start for the legitimization process for Bitcoin --  where people from the Wall Street can converge with those in the Main Street, so to speak. I am hoping that this platform will also be available to small players like us and not just for the whales who have the big resources they can play with anytime. As this sounds really interesting and maybe also profitable, would you be interested to buy a Bitcoin Futures contract?



     

I don't think that there is a need to buy futures unless you are an Institutional investor and you need to hedge your investments.
I would rather take into account an example of CBOE futures launch on 10th December, when Bitcoin made one of the largest growth in % in 5 minutes time, I think the same will happen upon CME launch on 18th. I have a quick video proving my point, would be glad to hear your feedback:
https://www.youtube.com/watch?v=JsR9N-TDBWM

[TheQuin]

I don't think that there is a need to buy futures unless you are an Institutional investor and you need to hedge your investments.

That is is one of the two purposes of futures contracts, the other is as an ideal day trading instrument. The costs involved are much lower and the trading platforms much more suited to active trading than those currently available at crypto exchanges.