Post
Topic
Board Speculation
Re: using futures to offset short term losses
by
2tights
on 12/12/2017, 20:14:37 UTC
I'm don't operate a big mine, but I'm curious if there's anyone out there who is using the futures to offset your short term losses
(https://www.youtube.com/watch?v=ZUiMJ9iy7to)

I only feel safe if im holding the private keys of my bitcoins. The futures are nothing but some contracts in some computer, it is a distraction to me, the people involved don't even hold the underlying asset. If there are fluctuations in the price if I hold through it. Also you need a special verification to be able to operate with futures if im not mistaken, which I don't have anyway.

Did you happen to watch the video I referenced and understand the tactic that is being used? Basically, you'd crunch the numbers and lets say you'd short 10% of your expected mining rake at a lower price than you could make a profit after rent/electrical cost (if applicable).

I"m just curious if anyone is employing that strategy. In theory, it does check out.