Post
Topic
Board Bitcoin Discussion
Re: Theories with Bitcoin Futures
by
Stedsm
on 16/12/2017, 13:57:30 UTC
Hello guys, what is your theory regarding Bitcoin Futures. Some say Bitcoin will dip, some say will double. What say you? What's your theory? Smiley

Bitcoin won't dip but yes, the possibilities to short Bitcoins will be opened at an extremely wide range once futures start to trade at a bigger volume. I saw somewhere that it costs much to start "selling/shorting" Bitcoins to make money on it and it's real, they might help Bitcoin to stabilize at some point but shorting still looks really expensive. A statement below will explain why I am saying this:

Quote
"All clients taking short positions will be required to maintain a margin of $40,000 per contract in their trading accounts for each short sale. Since each CBOE contract is equivalent to 1 BTC, that margin requirement works out to more than 200 percent of the contract value. Clients taking long positions, for reference, must maintain a margin of $9,000 per contract, a rate of approximately 50 percent."

Reference: https://www.cryptocoinsnews.com/want-short-bitcoin-going-cost/

200% of the contract value is almost impossible for an average trader and even those big whales would think at least twice before taking a short position.