The CME will be the first exchange to be trading bCoin derivatives soon! This move will set the cryptoCurrency mainstream as an asset class. The volatility is still high as we approach the deal it is hard to predict its market at that time.
The introduction to bCoin futures will allow investors to manage risk, it will make it safer to hodl and trade. This will open the door to business and individuals, hopefully this will encourage developers to support the new community.
2 main uses for these new contracts
- to reduce price risk by freezing future prices.
- the second is speculation
These new contracts will enable traders t olock in the value of bCoin for a defined period of time. This removes the risk associated with fluctuation in value. The new exchange will guarantee that both the buyer and seller will abide by the agreements.
This decision to issue futures plays a significant role, currently the bCoin derivatives have mainly been swap agreements. both parties agree to deal directly with eachother.
This type of transaction between both parties leaves each of them open to vulnerabilities between the business transactions as any party could pull out at any time. leaving the other party exposed.
The futures eliminates this risk. The exchange will clear each transaction and guarantees delivery. Futures will be standardized.
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