Bitcoin Futures, Forwards, and Derivatives Guide – Bitcoin Markets Guide – Top BTC Futures Exchanges

Без кейворда

Two. Get a Bitcoin Futures Account – Where bitcoin derivatives can be traded

Getting began

What is a Futures Contract?

Can I sell a futures contract without actually possessing it? How Does That work?

Bob and Ann Trade A Bitcoin Futures Contract

ANN: Brief one BTC @ $400 (5x leverage, 0.Two BTC margin used)

Futures Contracts vs. Spot

How to value Bitcoin Futures Contracts

You can use our Futures and Forward Fair Value calculator to compute a reasonable market value for a contract given a USD rate and BTC interest rate.

Watching The Market

Babypips is a superb resource for learning about technical analysis. TradingView permits you to chart Bitcoin and analyse the trends in different time frames, and Investopedia has useful reference information.​

You can use other charting sites too , to get a feel for what contraptions and resources are available that Bitcon traders use.

Get a bitcoin futures account

Table Comparing Bitcoin Futures Exchanges

How margin, leverage works in bitcoin futures

Should I trade with immobilized margin or cross margin?

Making your very first bitcoin futures trade

Settlement Procedures

Don’t worry, your profits are not stuck until the contract expires, every exchange has a settlement procedure that makes your profits available for withdrawal either daily or weekly.

CryptoFacilities, Coinpit, and BitMEX has a realtime profit realisation, while OKCoin and Deribit has weekly rebalancing scheduled for all contract lengths . It’s significant to note that on all of these exchanges, all the futures and forwards are non-deliverable and have expiration at various times. Despite this, OKCoin uses “delivery” as their term for expiration settlement of a contract, and “settlement” for the weekly rebalancing of the Pnl for higher length contracts. Since we are stuck with this unprofessional Chinese exchange being the superior market player in futures, we have to concentrate on their use of the terminology, but BitMEX and CryptoFacilities have very exceptional and professional setups that use well documented procedures. Always read the documentation of any exchange you’re using and the contract specifications of the individual product you’re using.

​On OKCoin you have three main kinds:

  • Weeklies
  • BiWeeklies
  • Quarterlies

So their weekly contract is lodged every Friday, at which point the BiWeeklies and Quarterlies are rebalanced to permit any profit to be withdrawn even however the expiration settlement is a week or many weeks later.

As an example: if you have Quarterlies contracts that you made profits on over the weekend, then this profit needs to be withheld because of the risk of socialised losses. By Friday, however, this profit is available to be withdrawn and the positions are all rebalanced. Technically this is not a “settlement”, because if you are holding an open Quarterlies contract when the weekly settlement occurs, your position will remain open, it will just practice a step-up in cost-basis and the unrealised Pnl is applied, so that socialised losses can be treated.

BitMEX also has a weekly rebalancing for all their contracts, but presently their most popular product is the Daily 100x maximum leverage contract. This lodges daily, but otherwise the rest of the contracts are treated on Friday, a little bit after OKCoin’s 8:00AM UTC. See this website to get a countdown to the settlements on the different exchanges. The policies of exchanges are switching often so this information may be outdated by the time you read it (however we will attempt to keep it as up to date as possible).

Dailies, Weeklies, BiWeeklies, Quarterlies — What Should You Trade?

If you want to do scalping, then shorter-term expiree contracts that lodge truly soon would be fine. Keep in mind, the normal state of futures markets is “contango”, which means that longer dated contracts will have a premium to the current spot rate, to reflect the interest rate differential and time preference. This means you will see Weeklies maybe with a $1-2 preium and Quarterlies (assuming they expire months from now) with a $5-8 premium. As an example we have Quarterlies contracts right now at OKCoin that lodge on December 25. So we’re just commencing December now, that means that even tho’ these are “Quarterlies” contracts by classification, they are expiring not three months from now, but one month from now. Don’t mix up the settlement expiration date with the naming convention.

BitMEX and CryptoFacilities have a more professional and decently set up exchange that has a naming convention that makes sense and matches their settlement, while using weekly rebalancing to permit for profit takeouts of customers.

So be aware of the premium or discount that is on longer dated contracts, this can permit you some arbitrage opportunities if you are patient and have the coins to apply to it. In general, we recommend that you trade any contract that has good liquidity and high volume. This is the most significant characteristic of ANY product for a trader. If you can’t get in and out reliably, and have a price that reasonably goes after the spot market behavior, then it’s not worth trading.

Bitcoin Futures, Forwards, and Derivatives Guide – Bitcoin Markets Guide – Top BTC Futures Exchanges

Без кейворда

Two. Get a Bitcoin Futures Account – Where bitcoin derivatives can be traded

Getting began

What is a Futures Contract?

Can I sell a futures contract without actually possessing it? How Does That work?

Bob and Ann Trade A Bitcoin Futures Contract

ANN: Brief one BTC @ $400 (5x leverage, 0.Two BTC margin used)

Futures Contracts vs. Spot

How to value Bitcoin Futures Contracts

You can use our Futures and Forward Fair Value calculator to compute a reasonable market value for a contract given a USD rate and BTC interest rate.

Watching The Market

Babypips is a excellent resource for learning about technical analysis. TradingView permits you to chart Bitcoin and analyse the trends in different time frames, and Investopedia has useful reference information.​

You can use other charting sites too , to get a feel for what devices and resources are available that Bitcon traders use.

Get a bitcoin futures account

Table Comparing Bitcoin Futures Exchanges

How margin, leverage works in bitcoin futures

Should I trade with stationary margin or cross margin?

Making your very first bitcoin futures trade

Settlement Procedures

Don’t worry, your profits are not stuck until the contract expires, every exchange has a settlement procedure that makes your profits available for withdrawal either daily or weekly.

CryptoFacilities, Coinpit, and BitMEX has a realtime profit realisation, while OKCoin and Deribit has weekly rebalancing scheduled for all contract lengths . It’s significant to note that on all of these exchanges, all the futures and forwards are non-deliverable and have expiration at various times. Despite this, OKCoin uses “delivery” as their term for expiration settlement of a contract, and “settlement” for the weekly rebalancing of the Pnl for higher length contracts. Since we are stuck with this unprofessional Chinese exchange being the superior market player in futures, we have to concentrate on their use of the terminology, but BitMEX and CryptoFacilities have very awesome and professional setups that use well documented procedures. Always read the documentation of any exchange you’re using and the contract specifications of the individual product you’re using.

​On OKCoin you have three main kinds:

  • Weeklies
  • BiWeeklies
  • Quarterlies

So their weekly contract is lodged every Friday, at which point the BiWeeklies and Quarterlies are rebalanced to permit any profit to be withdrawn even tho’ the expiration settlement is a week or many weeks later.

As an example: if you have Quarterlies contracts that you made profits on over the weekend, then this profit needs to be withheld because of the risk of socialised losses. By Friday, however, this profit is available to be withdrawn and the positions are all rebalanced. Technically this is not a “settlement”, because if you are holding an open Quarterlies contract when the weekly settlement occurs, your position will remain open, it will just practice a step-up in cost-basis and the unrealised Pnl is applied, so that socialised losses can be treated.

BitMEX also has a weekly rebalancing for all their contracts, but presently their most popular product is the Daily 100x maximum leverage contract. This lodges daily, but otherwise the rest of the contracts are treated on Friday, a little bit after OKCoin’s 8:00AM UTC. See this website to get a countdown to the settlements on the different exchanges. The policies of exchanges are switching often so this information may be outdated by the time you read it (tho’ we will attempt to keep it as up to date as possible).

Dailies, Weeklies, BiWeeklies, Quarterlies — What Should You Trade?

If you want to do scalping, then shorter-term expiree contracts that lodge indeed soon would be fine. Keep in mind, the normal state of futures markets is “contango”, which means that longer dated contracts will have a premium to the current spot rate, to reflect the interest rate differential and time preference. This means you will see Weeklies maybe with a $1-2 preium and Quarterlies (assuming they expire months from now) with a $5-8 premium. As an example we have Quarterlies contracts right now at OKCoin that lodge on December 25. So we’re just embarking December now, that means that even tho’ these are “Quarterlies” contracts by classification, they are expiring not three months from now, but one month from now. Don’t mix up the settlement expiration date with the naming convention.

BitMEX and CryptoFacilities have a more professional and decently set up exchange that has a naming convention that makes sense and matches their settlement, while using weekly rebalancing to permit for profit takeouts of customers.

So be aware of the premium or discount that is on longer dated contracts, this can permit you some arbitrage opportunities if you are patient and have the coins to apply to it. In general, we recommend that you trade any contract that has good liquidity and high volume. This is the most significant characteristic of ANY product for a trader. If you can’t get in and out reliably, and have a price that reasonably goes after the spot market behavior, then it’s not worth trading.

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