Trading in futures contracts Bitcoin

Since the end of last year, bitcoin futures have traded on two long futures market, the Chicago Board Options Exchange (CBOE) and CME Group stock. The Exchange is very regulated this resolve many issues that are found on newer bitcoin exchanges, according to Singh.

"Because the future can be traded on a regulated market, it will attract investors, making the market flow, stabilize prices, and the speed of transactions of the bitcoin," he said, adding, "If the price is stable, we can begin to see more companies that accept bitcoin as payment method. This can further bring liquidity to the market. "

William Vranos, CEO at Green Key Partners, an investment firm based in New York City, said that the futures market better prepared to handle a surge in volume, and futures traders do not have the bitcoin itself, so they do not need to concerned with bitcoin they will be compromised or stolen.

Futures contracts are binding on the landlord to purchase or sell an underlying commodity, currency or index of the market with the price set at weekly or monthly period. In many cases, merchants had never mastered the corn, crude oil or bitcoin covered in the contract. Instead, the gain or loss is reflected in the change in the price of the contract itself when the principal assets go up or down.

To close the position, traders sell contracts or buying offsetting contracts to gain advantage over the difference between the current market price and set by the original contract. Traders bitcoin which makes a contract until the end of receiving cash payments for victory or have to bear the losses.

"There are many problems in the room currency exchange crypto at the moment," said Kunal Desai, "the CEO of Bulls on CryptoStreet, a site for educational cryptocurrency." One of the main trade pro futures bitcoin is able to speculate on the price without having to deal with a shortage of spaces of Exchange cryptocurrency. "