Bitcoin same as futures?

Discussion in 'Crypto Assets' started by spinn, Feb 17, 2022.

  1. wartrace

    wartrace

    To whom are you replying? If it was in response to my comment I am not upset at all. I don't care what happens; just thought I would respond to help someone that appeared to be clueless about the risks. Have a great day!
     
    #11     Feb 17, 2022
  2. I do trade Futures, I don't trade Bitcoin but I can tell you that there is a strong correlation between Futures contracts and the underlying assets, mainly because people use the Futures market as an indicator for the underlying. That leads to arbitrage trading as many traders try to profit on the differences, both markets get aligned eventually due to the participants pressure.

    It sounds that your partners could just go and buy Bitcoin if they really believe that is an investment.

    The Futures market involve a higher degree of risk and they are not meant to be holdings. I don't know the stats for the average holding period on a position but I have a feeling that people don't hold a futures contract for long. There are also extra costs to maintain the positions open over night in the futures market, so check that as well.
     
    #12     Feb 18, 2022
  3. xandman

    xandman

    65,000 in Margin
    200,000 contract value
    That's about 3x leverage for an asset that moves 10% in a day, easily.
     
    Last edited: Feb 18, 2022
    #13     Feb 18, 2022