Bitcoin Futures

A futures contract is a contract that allows a seller to place a leveraged bet on whether the price of the underlying asset will move higher or lower before the contract expires obliging the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price. These types of contracts are standardized to allow for trading on a futures exchange.

It is important to differentiate between options and futures. The first type of the financial relations give the holder the right (not obligation) to buy or sell the asset at expiration date, but when it comes to futures the holder is obligated to fulfill the terms of the contract.

Bitcoin futures contract is no different from ordinary contracts of the kind excerpt that “digital character” of the underlying asset.

Bitcoin futures are cash settled, meaning no bitcoins actually change ownership when a contract expires, which allows large investors to put their money into bitcoin without actually buying it. The instrument allows traders to speculate the digital currency’s price, which may go up or down in one, two or three months.

CBOE became the first exchange to introduce bitcoin futures and offer an opportunity for investors to embrace the digital currency market via a regulated platform.

A debut of bitcoin futures took place on the Chicago Board Options Exchange (CBOE) on Sunday, December 10 with more than 800 contracts secured in the first two hours since the start of trading. This contributed greatly to the bitcoin futures’ price surge, which gained 25% in the first day.

Another major exchange, the Chicago Mercantile Exchange (CME), is planning to trade bitcoin futures starting on December 18 next week. NASDAQ has also unveiled its plans to launch futures contracts in January, 2018.

May 15th, 2018

By offering advanced products for institutional investors, Coinbase tries to satisfy their growing demands in the crypto sphere.

May 3rd, 2018

Goldman Sachs takes the next leap in the crypto space by allowing its clients hold Bitcoin and its derivative products.

April 27th, 2018

CBOE, the predominant US derivatives exchange that provides Bitcoin futures contracts, passed through the highest trading volume for bitcoin futures. On Wednesday, the volume was nearly three times the average daily volume.

20% of Large Financial Institutions are Getting Ready to Trade Cryptoсurrencies in 2018
April 25th, 2018

Hedge fund and asset managers across the globe are getting more serious about cryptocurrencies with a big institutional money likely to flow in.

April 24th, 2018

The overall crypto market valuations have touched $420 billion as Bitcoin Cash and EOS post 10% and 15% gains respectively.

April 23rd, 2018

While crypto market continues its positive show with Bitcoin Cash as the show-stopper, analysts remain bullish on the future.

March 29th, 2018

The latest correction in Bitcoin has brought it close to the dangerous levels of a “death cross” but analysts still prefer to remain bullish as many say the pain is “largely over”.

March 15th, 2018

Coinfloor, the UK-based exchange, will offer its users bitcoin futures contracts through a trading platform dubbed CoinfloorEX. The first physically delivered contract launches in April this year.

March 15th, 2018

The overall cryptocurrency markets have corrected heavily in the last 24 hours as the crypto markets valuations have dropped to $310 billion.

February 28th, 2018

Bob Fitzsimmons, expert in the sphere of futures, managing director and head of Wedbush Futures, shares his perspective on Bitcoin futures and digital-market potential.

February 1st, 2018

Some experts call it “healthy fall”and blame numerous governmental restrictions for the Bitcoin slide while many investors try to get rid of the cryptocurrency by all means.

February 1st, 2018

Square’s Cash App will incorporate Bitcoin trading facility at zero commission charges.

January 30th, 2018

While the market continues to achieve new record highs, it’s becoming more and more challenging for ordinary, esp. novice investors to make a profit.