Why Bitcoin Spot Contracts Have Spreads

『One』Why the price of bitcoin futures and spot are so different

The main reason is that the trading mechanism is different, the trading platform is different, and the trading volume is different. The difference between the spot price and the platforms is generally small, but the futures can sometimes be large, because the futures are a kind of hedge.

Bitcoin is a consensus network that enables an entirely new payment system and a fully digital currency. It is the first decentralized peer-to-peer payment network controlled by its users without a central authority or intermediary. From a user’s perspective, Bitcoin is a lot like the cash of the internet. Bitcoin can also be seen as the most prominent three-entry bookkeeping system out there.

『Ⅱ』The difference between bitcoin spot and contract

Bitcoin spot means that no matter how much bitcoin falls or how much it rises, there is a bitcoin in hand , which is a Bitcoin. For contracts, it has economic leverage, and the system will automatically liquidate and close positions, which is very risky.

“Three” Bitcoin index is whether the contract will go with the spot or the spot will go with the contract

It is obviously the contract that drives the spot market price change, but the contract risk great.

What are Bitcoin Options?

The so-called bitcoin option is to predict the future rise and fall of bitcoin. The profit calculation is the same as that of the spot. When buying up, you will earn as much as you go up in the cycle, and if you buy down, you will earn as much as you go down in the cycle. In short, it is to use a very small principal to bet on the ups and downs of the future range, so as to obtain high returns.

How do bitcoin options work?

For example, the current price of Bitcoin is $10,000, and you think it will rise in the next hour. Therefore, you open a 1-hour call option at a cost of 20 USDT. As expected, Bitcoin has risen by $1,000 within 1 hour, and the system will automatically settle when it expires in 1 hour. You will get a return of $1,000, which is equivalent to 50 times the return of the principal.

If Bitcoin falls in the next hour, you will lose the principal of the 20 USDT options you invested. This is the benefit of options with “unlimited returns and limited risks”.

What are the price limit rules for “4” bitcoin contracts

Why do people still play contracts? How many are Changsheng generals? This thing fluctuates too much, and both long and short are eaten.
The most secure options are fixed investment and Bitoffer options.
Options are the best hedging tool for spot, how to hedge? For example, if you open a put option on Bitoffer, if Bitcoin falls from $8,700 to $8,000, theoretically your spot will lose $700, but your put option will gain $700. In this way, you can completely hedge. risk of losing the market.

「Wu」Why those bitcoin contract exchanges can achieve zero allocation of contracts

This is related to their management mechanism and buy-in and buy-out mechanism , this belongs to financial knowledge. Generally speaking, they have zero contract allocation anyway, which may have a lot to do with their management mechanism.

『Lu』 Bitcoin price is in the spot area Why is it different from the contract area?

It is the same when it is delivered.

『柒』 What is the meaning of counterparty price in bitcoin contract trading

The trading principle of SCCTI CFD is similar to virtual currency trading, the difference is that when you trade When the CFD of virtual currency, such as bitcoin, you do not actually hold bitcoin, but trade the price trend of bitcoin, by defining the CFD on bitcoin price with the CFD broker, namely SCCTI,

『渌』 What is the reason for the large price difference between the bitcoin futures quarterly contract and the current week contract

Same question, and wait for the great god downstairs to answer!

『玖』What is the difference between the market price and limit price of Bitcoin contracts

Take the 58C‏O‏I‏N‏ exchange as an example, assuming that the current ‏B ‏T‏C‏U‏S‏D‏T‏The latest transaction price is $12000. If you want to buy at a cheaper $11900, you need to set a limit price of $11900. When the price falls to less than or equal to $11900, it will be Automatic transaction to buy; on the contrary, if the market price is $12000 and you set a limit price of $12100 to buy, then according to the “buy low” principle, the system will immediately trade at the market price of $12000. Because the $12000 limit is more “beneficial” to the user than the $12100 limit.

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