Futures Contracts (Discussed The Fun Way)

TL;DR

• Futures contracts are an settlement to purchase or promote an asset at a selected worth at a later date; and because the worth of BTC has dropped prior to now month or so, large futures liquidations have occurred.

Full Story

Let’s discuss futures contracts (however we’ll make it enjoyable).

Futures contracts are an settlement to purchase or promote an asset at a selected worth at a later date.

For instance, say Seb thought after BTC hit $73k final month, it would hit $80k by the seventeenth of this month (yesterday).

He would possibly arrange a contract to purchase BTC at $73k, and are available the seventeenth, he’d both be up for a killer deal (making $7k within the course of) if we was proper and it did hit $80k; or, he’d must pay the distinction between his purchase worth and the precise worth.

Seems, the value of BTC was about $61,200 on the seventeenth. Poor Seb.

(However that’s the danger you’re taking!)

Bringing issues again to the actual world, in line with Coinglass, about $220M value of BTC liquidations have taken place over the previous day.

Now, we’re about 2 days from the BTC halving.

If the BTC halving seems to be a ‘promote the information’ occasion, likelihood is we’ll see extra drops and extra futures contracts liquidations.

Then again, if the previous few days have been a kind of ‘promote the information of the information’ occasion, many of the main liquidations could have already occurred.

Both method, whereas the value has fluctuated, nothing has modified concerning the fundamentals of BTC.

So the probabilities of it getting again as much as that each one time excessive worth appear promising.

@Seb – able to placed on some futures contracts??