Cryptocurrency Q&A
How do BTC futures work?
How do BTC futures work?
GeishaCharming
Wed Nov 27 2024
|
5 answers
1000
BTC futures are financial instruments that allow investors to speculate on the future price of Bitcoin. They operate by buying or selling contracts which predict if the price will be higher or lower at a specific point in time, typically with a duration of three months. Traders profit if their prediction is correct and incur losses if it's wrong.
5 answers
amelia_martinez_engineer
Thu Nov 28 2024
BTCC, a top cryptocurrency exchange, offers a range of services including spot, futures, and wallet solutions. Traders can leverage BTCC's platform to access the futures market and engage in cash-settled Bitcoin futures trading.
Was this helpful?
244
45
HallyuHeroLegend
Thu Nov 28 2024
Bitcoin futures operate on a "cash settled" basis.
Was this helpful?
49
83
ShintoSanctuary
Thu Nov 28 2024
This means that traders do not physically receive or deliver Bitcoin upon the expiration of a futures contract.
Was this helpful?
207
92
ShintoBlessed
Thu Nov 28 2024
Instead, their accounts are adjusted with a cash amount, reflecting the difference between the initial position and the settlement price.
Was this helpful?
398
78
lucas_taylor_teacher
Thu Nov 28 2024
This cash settlement mechanism simplifies the process and eliminates the need for actual Bitcoin transfers.
Was this helpful?
102
86
