A crypto futures contract is a firm commitment to buy and sell cryptocurrencies at a fixed future date. Futures contracts are financially settled or physically settled between the buyer and the seller. Crypto futures also help to hedge against the volatility of cryptocurrency prices during the intermission as there is a fixed settlement date and price in the future.
The most widely traded is the bitcoin futures carried out by individual traders and commercial organizations through an authorized brokerage. It is noteworthy that Bitcoin contracts are generally uniform and it means that there is a specific quantity of assets in each contract. Each contract has an expiry date after which the contract ceases and the gains and losses are borne out by both parties to the contract. The trading in crypto futures takes place round the clock except for a brief time when the settlement is calculated.
While carrying out futures trade in Bitcoin or other cryptocurrencies you need to provide a deposit called ‘margin money’ to the exchange. Each broker will demand different margin requirements and this is mainly taking into consideration the value of leverage they have provided to the trader. On the BTCC cryptocurrency platform generally, traders are allowed affordable margin against significant leverage.
Leverage through Margin Account
While carrying out crypto futures trading with Bitcoin you generally are allowed leverage over the margin you need to provide to the platform. It means that by depositing a small percentage of your money you can control more value of the cryptocurrency without investing the entire amount from your pockets. It helps small individual traders in bitcoin trading to profit more out of each transaction. However, just like there is a possibility of huge profits there is also a possibility that you may lose money as heavily.
If you are a disciplined and methodical trader you may find your profit increasing with borrowed capital from the trading platform as shown here. It also frees the trader in cryptocurrency to open a digital wallet account. It is also seen that futures contracts are the most liquid among all kinds of trading as there is always a settlement date. However, unlike physical assets whose value is controlled through your wallet account, you cannot use futures contracts to pay for goods and services in the real economy. Despite the percentage of margin, it can still be pretty large for small individual traders.
BTCC
BTCC is the world’s longest-running cryptocurrency exchange which is accessible to millions of traders worldwide. The best part of the site is that it has never been hacked has gained the trust of clients and allows them the best possible trading experience. The platform is secure and there are no reports of misgivings or queries regarding any anomalies by traders.
The crypto trading platform boasts low investment and multiples of 100 leverages and allows very low margins for easy participation. The site is open to 14 major currencies and traders can profit from holding long or short positions.
The site has excellent customer service staff and their technical team always is on the lookout for major fluctuations in the value of cryptocurrencies and gives their members timely suggestions and expert advice.