What is Bitcoin Futures
Post Time：2020-01-10 17:51:51 By：BG
For futures, its returns are really attractive, but risks also exist, and it is a misunderstanding to over-emphasize the risks of futures. After all, all investments are risky. There is no non-shared investment, unless you have a bank with the old interest, but although novices in the currency market do not recommend contacting bitcoin futures, all people who do futures always have There is a beginning, and futures can actually be more advantageous than spot trading. In fact, futures also have low-risk strategies available. The process of bitcoin futures trading does not involve the deposit and withdrawal of fiat currencies. It is based on bitcoin and the US dollar. All virtual currencies in the world are in US dollars. After all, the United States still occupies most of the financial market.
For example, at the time of 10k USD, 10 times leverage is used to do more Bitcoin. This means that at this time, 0.10 bitcoin was used to sell 10k USD. When Bitcoin rises to 11k USD, it will cost $ 10k to buy it. Bitcoin is even less. The difference between the two is the profitable Bitcoin. The short is the opposite.
When Bitcoin is bought at 10k USD, the dollar is used to buy USD. After Bitcoin declines against the USD, use these USD to sell back more Bitcoins. The difference between them is profit. When the currency rises, you can only exchange less bitcoin when you close the position, and you will lose money. It can be understood in the reverse sense that in the Bitcoin futures trading mode, opening a long position is equivalent to using Bitcoin to short USD, and opening a short position is equivalent to using Bitcoin to make a long USD. So this process seems to be playing a word game, all of which are closely linked. But don't use all bitcoins for futures, and combine currency storage and futures trading. At first, use a small amount of trials. The number of open contracts is not more than 100.
It is considered simulation. For light warehouse operations, the leverage ratio should not be too high, and you can even use the spot mode to familiarize yourself with the operation. In the process of operation, you should gradually establish a systematic trading strategy compatible with yourself according to your own characteristics. Therefore, in the long run, futures are conducive to market price stability. However, a prerequisite for price stabilization is that the current price is in the right center of value.
At present, the price of Bitcoin is higher than the value center, that is, there is a certain bubble. Of course, this is just a gross estimate based on personal experience. After all, it has increased 100 times from 1000 to 100,000. Based on this judgment, there is a high probability that a wave of rapid declines will occur after the futures are launched. Making this futures is also challenging the heart of the person. If there are any hidden dangers, do not make this kind of investment. It is also said that it is safe to go to the bank to buy funds.