Meng asked in Business & FinanceInvesting · 1 month ago

How Bitcoin futures exchange works?

4 Answers

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  • 1 month ago

    This is a difficult question to to answer without knowing how much you already know.

    If you are not familiar with futures you can get a basic introduction to futures from investopedia starting at

    https://www.investopedia.com/articles/active-tradi...

    Once you have a basic understanding of futures contracts you can get specifications for the bitcoin futures contracts at

    https://www.cmegroup.com/trading/equity-index/us-i...

    and

    https://www.cmegroup.com/confluence/display/EPICSA...

    You also need to understand that before you can trade bitcoin futures you have to get permission from your brokerage. For an example of what one brokerage (TD Ameritrade) see the link under "source"

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    It is important that you understand that futures contracts are derivatives and are leveraged. Because of the leverage involved even a relatively small change in the price of a bitcoin can have a much larger change in the price of a futures contract. A sudden large change in the price of a bitcoin can cause you to lose more money than you have in your account and in which case you will have to pay to brokerage more money to cover the additional loss.

  • kswck2
    Lv 7
    1 month ago

    By convincing you to buy something that does not exist. NO real investor would do that. 

  • 1 month ago

    uiuuooooooooooooooooooooooooooooooooooooooooooo

  • Anonymous
    1 month ago

    By taking your money and leaving you with something worthless.

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