Futures Contracts

For a broad definition, Financial futures refer to a financial instrument that specifies buying or selling a financial asset between two parties for a predetermined price and a precise date in the future. For example, bitcoin futures are futures contracts that enable traders to speculate on Bitcoin's price without actually owning bitcoin. Once a futures contract is set or agreed upon, counterparties are required to fulfill the terms of the agreement upon expiration, either by selling or buying the asset…

Perpetual contracts trading makes up a significant percentage of overall exchange-traded cryptocurrency volumes. Investors looking to bet on the price developments of BTC and other crypto assets are often not too concerned about holding actual tokens but are instead interested in trading highly liquid cryptocurrency derivatives such as perpetual futures contracts. Perpetual futures contracts on cryptocurrencies are financial derivatives enabling traders to bet on the price movements of crypto assets using leverage without owning the underlying digital asset.  A futures…

Feb. 19 saw Bitcoin register its fifth-largest hourly price drop. From $10,214.98 it fell to $9,573.74. Its price remained hemmed below the $10,000 barrier. The decline was reminiscent of the 2017 one when it had reached its peak. Arcane Research suggests that while BTCs volume has been rising, the spot market price has drastically shifted. Again, the currency attained its peak this year.  Its daily volume moved close to $1 billion. Increasing Trading Volume On CME, the research found out…