HI ALL,
As everyone knows the futures on bitcoin will be available soon. CME Group plans to launch them in 2017 Q4.
They state the settlement will be in dollars. So futures buyers does not have to deal with bitcoins. That's a bit strange to me. Who will deal with bitcoins than?
Investor buys 1 contract. It is 5 bitcoins. After a certain time if the price (calculated from several exchanges) goes up.
The buyer will receive profit. But who will pay?
As i understand the futures sellers will pay that profit. But they have to get this profit from selling bitcoins at a higher price.
So futures sellers will have to REALLY buy bitcoins. Not futures buyers.
Am i correct? This subject seems unclear to me.
The futures contract just like you are predicting the future price of the bitcoin let's say the A predicted about the bitcoin will reach $12k in the future. And another person like B predicted about the bitcoin will be around $13k and finally, the price of bitcoin stopped around $12,5k That means the predicted by A becomes the true value of bitcoin. So there is $500 gap with the bitcoin. And it can be considered as the profit for A.
And B is a looser caused by the price of bitcoin doesn't surpass its prediction.
For me who know the futures on bitcoin predicting the future price of the bitcoin. Imagine let's say the predicted about the bitcoin will reach $12k in the future.So that the predicted by becomes the true value of bitcoin.So there is $500 gap with bitcoin.And it can be considered as the profit for A. And B is a looser caused by the price of bitcoin doesn't surpass its prediction.