Are bitcoin contracts the same as futures

1.

Similar to futures contract, it is a trading method proposed by bitstar

the leverage of bitcoin virtual contract is shown as the leverage stability of the revenue level of legal currency: if you invest US $100, the revenue you can get = US $100 * the rise and fall of bitcoin * the fixed leverage ratio

assuming that the current price is 500usd / BTC, an investor can buy a BTC at the current price, and the principal is 500usd. At this time, the investor can make 50 more BTC virtual contracts

at this time, if the price of BTC rises to US $750, or 50%, the investor's contract income is 3.3333 BTCs, which can be sold at the current price to get us $2500, and the income is five times of the principal investment

bitcoin futures provided by bitcoin exchanges are usually traded in bitcoin. Futures is opposite to spot. Spot is a commodity that can be paid and delivered at the same time. In fact, futures is not "goods", but an agreement (contract) - futures contract that promises to deliver "goods" (subject matter) at a future time

extended data:

futures contract is an agreement that the buyer agrees to receive certain assets at a specific price after a specified period of time, and the Seller agrees to deliver certain assets at a specific price after a specified period of time. The price that both parties agree to use in future trading is called futures price

the specified date on which both parties must conct transactions in the future is called settlement date or delivery date. The assets agreed to be exchanged by both parties are called "subject matter". If an investor gains a position in the market by buying a futures contract (i.e. agreeing to buy at a future date), it is called long position or long in futures

On the contrary, if the position obtained by investors is to sell the futures contract (i.e. bear the contract responsibility to sell in the future), they are short positions or short on the futures

2. In the transaction of option contract, the buyer only needs to pay the equity, but does not need to pay the margin, while the seller requires to pay the margin.

3.

the basis of bitcoin contract

bitcoin contract refers to a contract that can be traded without actually owning bitcoin. It is very different from the currency transaction which can only be carried out with the actual holding of digital currency

bitcoin contracts enable you to predict the price trend of bitcoin and hedge risks. This way of trading means that you are investing in price trends, not the assets themselves

when trading bitcoin contracts, you can decide whether to be short or long. Choosing long means that you expect the price of bitcoin to rise. On the other hand, choosing to short means that you expect prices to fall

leveraged trading

one of the characteristics of bitcoin contracts is that it can choose to trade with high leverage ratio. Using leverage means that you don't have to invest 100% of the transaction amount in a contract transaction. Instead, you only need to deposit the initial margin, which is only a small part of the total contract value

leveraged trading allows you to have a large exposure with a small amount of funds while managing risks

perpetual contracts

although there are many different types of contracts, this paper mainly focuses on perpetual contracts. As the name suggests, these contracts have no expiration date. Traders who are long or short with perpetual contracts can hold positions indefinitely unless the contract bursts, which means that they will not suffer more losses than the initial margin

in the perpetual contract, the pricing of bitcoin is based on a specific index price. The index price is based on the average price of bitcoin in multiple currency markets

bitcoin contract has become a very popular trading tool. Many traditional investors are not ready to allocate their money to digital assets, but still want to benefit from attractive price fluctuations, and contract trading opens the door for them

if you want to open bitcoin contract trading, you need to find the exchange that provides contract trading. AAX platform provides you with bitcoin contract trading services in a compliant and secure environment

4. Bitcoin spot is no matter how much bitcoin falls or rises, there is a bitcoin in hand, which is a bitcoin. For contracts, it has economic leverage, and the system will automatically burst and close out positions, which is very risky.

5. Yes, but the buying up and buying down of bitcoin is usually called contract. This is a derivative of spot trading. At present, many exchanges have supported 1-20 times of contract leverage for long and short trading. The best exchange in the instry is okex, which supports several mainstream currencies (bitcoin, Ethereum, lightcoin, BCH, XRP, etc.) for long and short trading. Contracts are risky, so we should be cautious when entering the market.

6. Bitcoin futures clearing refers to that the exchange or clearing company calculates the trading profit and loss of members and customers, and uses the calculation results as the basis for drawing trading margin or margin call. Bitcoin futures clearing is a procere to end the existing legal relationship, deal with the remaining property and make it disappear
in addition, there is another term called settlement. In a narrow sense, liquidation is different from settlement, because liquidation does not involve the transfer of creditor's rights and debts, while settlement is the transfer of creditor's rights and debts. But broadly speaking, liquidation is a kind of settlement
settlement requires clearing all links of the futures trading market, which includes not only the settlement of the exchange to its members, but also the calculation of the trading profit and loss of its acting clients by the member brokerage company, and the calculation results will be recorded in the clients' margin account
generally speaking, there are two organizational forms of futures settlement. One is that the exchange has a clearing department, such as CME and CBOE, which can clear bitcoin futures issued by themselves
there are also professional clearing institutions independent of futures exchanges, such as Goldman Sachs, which plans to launch bitcoin futures clearing service.

7. Bitcoin contract is futures, futures and options are essentially a derivative of bitcoin, but also spot hedging tools! But generally speaking, options are better than futures. We can compare them according to several points
first of all, if the current price of bitcoin is $8000, when bitcoin rises from $8000 to $8500
1. Cash, get $500
2. Bitoffer options, get $500

3. How to get $500 for futures

for example, you can get $500 by using $500 principal, opening 20 times leverage and increasing by 5%
when the returns of the three are the same, we find that the option advantage is the most obvious
cash, need to invest $9000
futures, need to invest $500
Options, need to invest $5

8. When a long put option is put, its profit is limited (the maximum profit is that the value of the subject matter returns to zero, and the difference between the exercise price and zero is earned), and its loss is limited (it will not burst the position, and the maximum loss is that the option will not be exercised on the exercise date, so it is the option fee when the call option is lost);