Crypto Futures are a way to trade the future price of crypto assets. Bitcoin Futures are the most common crypto Futures.
Each Futures Contract contains a specified amount of the traded product. In the example of Cryptology Bitcoin Futures, each Futures Contract cost $1 and contains Bitcoins and is settled based on the crypto exchange auction price for Bitcoin.
WHAT IS BENEFITS OF FUTURES TRADING?
Opportunity to earn now
The trader needs to guess which direction the price of the BTC will go in order to increase its capital up to x100.
Diversification of trade risks
Including up to 20% of total investments in Futures enhances portfolio diversity and therefore promotes greater independence from general market moves.
Leverage up to x100
To grow trader's capital faster with minimum investments.
How Does Futures Trading Work?
On the Cryptology, traders can earn money speculating on the price of Bitcoin, without actually buying or holding the underlying asset.
Buying Bitcoin Futures Also called "going long" or "longing"
Trading Bitcoin Futures often involves constantly adapting to changing market sentiment, buying and selling contracts based on Bitcoin's price accordingly.
For example, say a trader named Arthur think, that Bitcoin's price will rise.
A specific example of a trade Arthur could take, could see him buying a Bitcoin Futures contract at $5,000 on April 1st, and then selling on April 10th for $5,200 (if Bitcoin's price rose in that time period), seeing a $200 profit.
Selling Bitcoin Futures Also called "going short" or "shorting"
Arthur also has the option to short-sell Bitcoin futures. This basically means betting that Bitcoin will fall in price in the future. When Arthur short-sells a Bitcoin Futures contract, it means that he borrows one Bitcoin futures contract from someone else on the exchange and sells it, hoping to buy the contract back at a lower price and keep the price difference. This is done by the exchange, so traders do not have to individually seek out contracts to borrow and then give back later.
For example, if Bitcoin's price is at $5,000 on April 1st and Arthur thinks it will fall to $2,000 by April 10th, then he would sell a Bitcoin Futures short contract utilizing Cryptology exchange features. If Arthur sold one Bitcoin Futures contract short at $5,000 on April 1st, and the price fell to $2,000 on April 10th, he would buy the contract back and receive a payout of $8,000 (his initial $5,000 plus a $3,000 profit).
On the Cryptology, traders can start with deposit from as little as $25 and trade with leverage up to x100.
Let's have a look at the trading of the Bitcoin Futures Contract with leverage.
Each Futures Contract equals $1. So with $25 investments and leverage up to x100 trader can buy a contracts for $2,500 ($25 x 100). That means that profits can be hugely multiplied using the leverage.
Cryptology is not affiliated with any third party, including, but not limited to, gambling, binary, forex brokers, and any other service provider This website is owned and operated by Cryptology. Cryptology is the trading name of the Cryptology Group of Companies, including Cypher OÜ [registration number: 14626039, Roosikrantsi tn 2, Kesklinna Linnaosa, Tallinn, Harju Maakond, 10119]. Licensed to provide Cryptocurrency exchange services License FVR000662