Bitcoin Futures Contract

[Teraboy]

Hey, someone know what is Bitcoin Futures Contract? and what will be the advantages of buying it?

Thanks!

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.

[saleenasmith]

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.

[Kakmakr]

Hey, someone know what is Bitcoin Futures Contract? and what will be the advantages of buying it?

Thanks!

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.

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?

[sofi@]

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.

[Georgeberg]

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.
 

Ok, can you elaborate ?

[zxcv cool]

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.

[Georgeberg]

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!

[bubble1]

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.

[yojodojo21]

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!

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.

[Georgeberg]

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!

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

[Georgeberg]

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!

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.

oK

[Georgeberg]

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.
 

What does it got to do with technology

[siddu67]

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.

[Rj Manik]

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.

[Rosa Paula]

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.

[bubble1]

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

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

[100%succes]

Hey, someone know what is Bitcoin Futures Contract? and what will be the advantages of buying it?

Thanks!

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?

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.

[Kevondo]

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.

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.

[Cryptokobi]

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.

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

[scottykarate]

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.