CEX.IO latest gambling wheeze is a futures contract. Well, it isnt a futures contract because you cannot take a short position. It is in fact a forward contract where you have to guess the price of GHS one or two months ahead and are then locked into taking delivery at whichever price you buy at.
For CEX.IO to call it a futures contract suggests that they do not know anything about financial contracts and are scam artists.
Stop splitting hair, what does not able to short the contract have to do with anything? futures/forward contracts are very similar, the main difference is one is exchange traded, and the other is mostly private placement with custom term structure. There is nothing wrong with what cex.io did with fha/fhm and calling them futures contracts with a defined settlement.
If you want to argue about valuation that's fine, but whatever the **** you said about them being scam artist because they called the contracts futures instead of forward makes absolutely no sense.
I have been doing this for a living for the last 10 years, you make no sense.
Don't make me laugh. I have 20 years in The City to your 10.
Calling an instrument a futures contract and not permitting short-selling goes against advertising standards.
I expect to be able to short a futures contract because I know the price is going to go down.
Why would I want to buy GHS a month or two ahead of time knowing that the spot price is trending downwards all the time?
I would jump on the contract if it lets me short it. And I expect to if it is a futures contract.
This is mis-representation and mis-selling of the highest order in an unregulated market.