How much is a bitcoin futures contract

1. What is a Bitcoin futures contract

Bitcoin futures contracts are usually standardized contracts based on the Bitcoin price index.

Bitcoin futures offered by bitcoin exchanges are usually traded in bitcoin. Futures are relative to the spot, and the spot is a commodity that can be delivered with one hand and one hand, while futures are not actually “goods”, but an agreement (contract) that promises to deliver “goods” (subject) at a future time – futures contract .

Subject: Also known as the underlying asset, which explains what to buy or sell. At present, the underlying bitcoin futures are the bitcoin price index, and the methods of generating settlement and delivery prices are based on this index.

Fees: Unlike stock transactions, which are subject to stamp duties, commissions, transfer fees, and other fees, futures transactions are only charged a handling fee. There are two types of transaction fees for Bitcoin futures: opening and closing positions, which are charged when opening a position (such as OKCoin) and when closing a position (such as 796). Bitcoin futures fees are generally 0.03% of the total contract value.

Margin: Margin is closely related to another concept – leverage, which generally reflects the level of income and risk by leverage ratio. For example, 796’s newly launched 50 times leverage (ie 2% margin), it means that investors can invest 1 Bitcoin to buy 50 Bitcoin futures contracts (ie 50 times leverage);

or From another perspective, 1 bitcoin invested by an investor is equivalent to 2% of the 50 bitcoins purchased (ie, 2% margin ratio).

Through 50 times leverage, the return of futures relative to spot is magnified by 50 times, such as buying 1 coin spot and buying 50 more coin futures with 1 coin at the same time, assuming spot and futures prices If both rise by 100%, then the spot earns 1 coin, and the futures earns 50 coins.

(1) How much is Bitcoin futures contract generally extended reading

A futures contract is an agreement in which a buyer agrees to receive an asset at a specified price after a specified period of time, and a seller agrees to deliver an asset at a specified price after a specified period of time. The price that both parties agree to use in future transactions is called the futures price.

The specified date on which future transactions must be entered into between the parties is called the settlement date or delivery date. The assets that both parties agree to exchange are called “underlyings”. If an investor takes a position in the market by buying a futures contract (that is, agreeing to buy at a future date), it is said to be a long position or a long position in futures.

On the contrary, if the investor’s position is to sell a futures contract (that is, to assume responsibility for the contract to be sold in the future), it is called a short position or a short position on futures.

2. How to play BTC bitcoin futures contract, can you make money?

You can make money, but you may also lose money. The risk of the contract is still very high, at least It is more risky than normal currency speculation, but the benefits are also considerable. You can study and observe the exchange now, and then decide whether to enter the market.

3. Bitcoin contract trading What is

1. Definition of contract
A futures contract is a buyer agreeing to receive an asset at a specified price after a specified period of time, and a seller agreeing to deliver an asset at a specified price after a specified period of time agreement.
The price that both parties agree to use in future transactions is called the futures price. The specified date on which the two parties must transact in the future is called the settlement date or delivery date. The assets that both parties agree to exchange are called “underlyings”.
If an investor takes a position in the market by buying a futures contract (that is, agreeing to buy at a future date), it is called a long position or a long position in futures. Conversely, if an investor takes a position by selling a futures contract (that is, taking responsibility for the contract to be sold in the future), it is called a short position or short on futures.

2. The origin of the contract
A futures contract refers to a standardized contract formulated by a futures exchange that stipulates the delivery of a certain quantity and quality of commodities at a specific time and place in the future. It is the object of futures trading, and the participants of futures trading transfer price risk and obtain risk returns by buying and selling futures contracts on the futures exchange.
Futures contracts are developed on the basis of spot contracts and spot forward contracts, but the most essential difference between them is the standardization of the terms of futures contracts. For futures contracts traded in the futures market, the quantity, quality grade and delivery grade of the subject matter, as well as the premiums and discounts of substitutes, delivery locations, delivery months and other terms are standardized, making futures contracts universal.
In the futures contract, only the futures price is the only variable, which is generated by open auction on the exchange.

3. Classification of contracts
Digital currency contracts can be divided into: delivery contracts and perpetual contracts.
(1) Delivery contract: futures delivery refers to the delivery of a futures contract when the futures contract expires.�� The two parties settle the process of expiring open positions through the transfer of ownership of the commodities contained in the futures contract.
(2) Perpetual contract: It is a derivative similar to leveraged spot trading, and is a digital currency contract product settled in BTC, USDT and other currencies. Investors can obtain the benefits of rising digital currency prices by buying long, or obtain benefits from falling digital currency prices by selling short.
Perpetual contracts differ from traditional futures in a certain way: they have no expiration time, so there is no limit to how long a position can be held. In order to ensure that the underlying price index is tracked, the perpetual contract ensures that its price closely follows the price of the underlying asset through the mechanism of funding fees.

4. Which futures contract exchanges are there for Bitcoin

As a friend said, most exchanges for futures contracts will be stuck. Once it starts to fluctuate, It is often impossible to close the position, and can only wait for the liquidation, so many people are reluctant to play contracts now, and the risk factor is too high. In contrast, options are on the rise. Take bitoffer’s upcoming bitcoin options as an example. There is no margin, no handling fee, no liquidation, and the risk is controllable!
On the basis of these advantages, the contract has been completely defeated, including the profit, which is a higher level. There is basically no profit if the contract leverage is not opened high. And options do not need leverage, but also achieve the effect of leverage, up to a thousand times leverage. For example, for bitoffer’s options, the current price of Bitcoin is 8500 points. You think it will fall in the next hour, so you open a 1-hour put option, which consumes 5 USDT. Sure enough, Bitcoin fell by 500 points in 1 hour, then 1 hour When the option expires and settles, you get 500 USDT income, and your principal is only 5 USDT.

5. I want to know the minimum leverage of okcoin bitcoin futures.

OKCoin’s bitcoin futures are divided into two types of leverage, 10x leverage and 20x leverage , the market is not volatile now, it is recommended that the landlord use 20 times leverage, and the income is stable. You can also take a look here, www.okcoin.com

6. What is a bitcoin futures contract

Hello, futures (Futures) are relative to the spot, the spot is a real commodity that can be paid in one hand and delivered in one hand, and futures are not actually “goods”,
It is a promise of the future An agreement (contract) to deliver “goods” (subject matter) at one time – a futures contract. Bitcoin futures are usually standardized contracts based on the Bitcoin price index (such as the BraveNewCoin Global Bitcoin/USD Price Index adopted by 796 Exchange), and Bitcoin futures provided by Bitcoin exchanges are usually traded in Bitcoin.

7. Why is the bitcoin futures contract trading platform system stuck?

The instability is mainly due to system problems, as well as the number of visits per unit time, peak hours Many platforms will have it, and the big platforms will be the same. A platform that specializes in futures trading will be much better. The two contract platforms, OKTOP and IOAEX, are relatively stable.

8. What is a Bitcoin contract

Basics of a Bitcoin contract

A Bitcoin contract is a contract that does not need to actually own Bitcoin A tradable contract. It is very different from currency-to-currency transactions, which must be physically held in digital currency.

Bitcoin contracts allow you to predict Bitcoin price movements and hedge risk. This way of trading means you are investing in price trends, not the asset itself.

When trading Bitcoin contracts, you can decide to go short or long. Choosing to go long indicates that you expect the price of Bitcoin to rise. On the other hand, choosing to go short indicates that you expect the price to fall.

Leveraged trading

You can choose to trade with high leverage, which is a feature of Bitcoin contracts. Using leverage means that you do not have to invest 100% of the transaction amount when trading contracts. Instead, you only need to deposit an initial margin, which is only a fraction of the total contract value.

Leveraged trading allows you to have a large exposure with a small amount of money while managing risk.

Perpetual Contracts

Although there are many different types of contracts, this article focuses on perpetual contracts. As the name suggests, these contracts have no expiration date. Traders who use perpetual contracts to go long or short can hold their positions indefinitely, unless the contract is liquidated, which means they will not lose more than their initial margin.

In perpetual contracts, Bitcoin is priced based on a specific index price. Index prices are based on the average price of Bitcoin across multiple cryptocurrency exchanges.

Bitcoin contracts have become a very popular trading tool. Contract trading opens the door for many traditional investors who are not ready to allocate funds to digital assets but still want to benefit from attractive price volatility.

To open Bitcoin contract trading, you need to find an exchange that offers contract trading.The AAX platform, in a compliant and secure environment, provides you with bitcoin contract trading services.

9. What is a Bitcoin contract

The contract mentioned in it is a non-standard transaction, which can be rewritten by Bitoind, BitCoin wallet code or by using bitcoinj Generate non-standard transactions, although normal wallets will not accept these non-standard transactions, but some mining pools such as Eligius.st accept non-standard transactions and can enter the block chain, so that some wallet software can handle them normally. Another meaning refers to trading bitcoin contracts, just like futures trading in the stock market, which can be long and short.

10. How to trade bitcoin contracts

Similar to futures contracts, it is a trading method proposed by BitStar.
The leverage of the Bitcoin virtual contract is represented by the stable leverage at the level of fiat currency income: investing $100, the income you can get = $100 * Bitcoin’s rise and fall * fixed leverage multiple.
Assuming that the current price is 500USD/BTC, an investor buys one BTC at the current price, and the principal is 500USD. At this time, the investor can buy 50 BTC virtual contracts. At this time, if the BTC price rises to US$750, an increase of 50%, the investor’s contract income is 3.3333 BTC, and after selling at the current price, he can obtain US$2,500, and the income is 5 times the principal investment. If the price rises to $1,000, the contract income is 5BTC, and the dollar income after selling is $5,000, which is 10 times its dollar income. No matter how the price fluctuates, the leverage of the contract is very stable, which makes it convenient for merchants to hedge with the contract and for ordinary investors to manage their positions.

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