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Bitcoin Futures Trading Pattern Analysis

The recent bitcoin transaction volume and price seem far beyond our expectations, even worse, the United States Chicago Mercantile Exchange, Chicago Board Options Exchange, Tokyo Futures Exchange have announced the recent launch of bitcoin futures contract trading plan, and According to the current commodity futures contracts, the types of financial futures contracts set, bitcoin futures contracts are not included, the trading rules and can not be directly applied, and because no administration has introduced a bitcoin futures contract details, but From the underlying asset attributes and futures trading properties can still be the kind of new futures trading pattern is evident.

Trading mode

As underlying underlying bitcoin futures is bitcoin, as a special underlying asset, traders make the difference by betting on bitcoin contracts, which are very different from the futures exchanges' previous trading products, mainly include:

First, futures pricing. According to the Futures Trading Rules disclosed by CME, the benchmark for the pricing of Bitcoin Futures contracts is its own Bitcoin Reference Rate ("BRT: Bitcoin Reference Rate"), which is traded in bitcoins every day before 4 pm London time Data prevail, the CBOT will be combined with the major Bitcoin platform data to calculate a BRR. If the above contract expires, the BRR is higher than the BRR bought by the investor on that day, then the investor will charge the difference.

Second, the return of futures. According to the above BRR mechanism, Bitcoin Futures actually performs cash settlement on the basis of bitcoin prices, and investors earn revenue through bitcoin price differences.

Third, margin mechanism. As with traditional futures contracts, the Bitcoin futures contract also applies to the margin model. There is currently no standard standard bitcoin futures contract margin standard. The margin of a bit futures contract set by the exchange is generally between 10% and 20% .

Trading risk

For the transaction of bitcoin and derivatives, in addition to China's more explicit restrictions, at present, most governments do not issue any corresponding regulatory policies. However, the risks of their transactions still need to be noticed:

First, short the mechanism. Futures, as a hedged instrument, whose short mechanism and high leverage will have sharply fluctuating and unrestrained futures prices are likely to have some investment funds that do not themselves hold bitcoin Buying and selling futures for speculative purposes manipulate futures prices.

Second, regulatory risks. As the underlying assets of bitcoin futures, since it is hard to discern the relationship between bitcoin transactions and activities such as money laundering and illegal financing, each country is in fact cautious about its transactions. Therefore, the regulation of cryptocurrencies for bitcoin exists Uncertainties such as the plan by the UK regulatory authorities to include virtual currency trading platforms and managed wallet providers in anti-money-laundering and anti-terrorist financing laws; ECB Governing Council members, the U.S. Department of the Treasury, Australia, South Korea and other authorities have started The plan is to include the market for Bitcoin-related transactions in regulation.

Third, investment risk. Due to underlying underlying asset prices and market instability in bitcoin futures, futures contracts will be affected to a large extent. There is also uncertainty about the risks of investors engaging in related transactions. Investors should understand the risks involved in encrypting digital currency transactions Carefully participate in futures trading.

Although there is much controversy over bitcoin and contract transactions, the greatest value of digital assets is itself, and perhaps the price of bitcoin may fluctuate more with the start of bitcoin futures trading, and as individual wealth outlooks do not Stop being subverted, bitcoin charm will be further bloom!