Understand the concept of the Futures bonus in cryptocurrency trading
The world of cryptocurrency trade is a high -quality, fast environment in which dealers are constantly trying to maximize their profits. A key concept that can significantly influence the success of a dealer in this area is the Futures premium. In this article, we will deal with the Futures bonus, how it works and why it is essential for successful trading in cryptocurrencies.
What is futures premium?
Futures Premium, also referred to as spread or BID-ASK premiums, refers to the difference between the price of an underlying asset (such as a cryptocurrency) if it is sold after the expiry and its spot price. This concept results from the fact that buyers and sellers on the futures market are not always willing to pay the same price for a contract with an unlimited duration.
How does futures premium work?
Imagine that you act Bitcoin -Futures contracts, which at a certain time in the future will be ownership of a certain amount of Bitcoin. The buyer pays a bonus to buy this contract, which means that he pays more than his nominal value (Spot price). Conversely, the seller receives less than his nominal value, since he has to buy or sell the underlying asset before expiry.
The futures market is based on BID-ASK premiums, in which buyers and sellers are willing to pay different prices for contracts with the same asset. The buyer’s premium is usually higher than the spot price of the financial value, while the seller’s premium is lower. This creates a BID-ASK spread that can vary depending on factors such as market demand, supply and volatility.
Why is futures premium important in cryptocurrency trade?
In cryptocurrency markets, Futures premiums play a crucial role in determining the trading decisions. Here are some reasons why:
- Price Discovery
: The futures bonus helps dealers to understand the price dynamics of a financial value before making their own business. By analyzing the spread, retailers can gain insights into the market mood and potential price movements.
- Risk management : Understanding the BID-ASK premiums enables dealers to effectively manage their risk. For example, if a dealer knows that a certain contract is overpriced, he can decide not to buy it or sell immediately, which minimizes potential losses.
- Commercial strategy development : The futures premium helps dealers to develop effective trade strategies by identifying areas with high demand and low market on the market. By expecting these trends, retailers can position themselves for profitable business.
- Market feeling : The BID-AS premiums can indicate market feelings, such as the trust of investors or the market tang. Dealers who can effectively analyze these premiums can gain valuable insights into market psychology.
Examples of futures bonuses in cryptocurrency trading **
To illustrate the concept, we look at some examples:
- Bitcoin -Futures with a high premium
: If the Futures Prize for Bitcoin is 10,000 and the Spot price is around 9,500, a dealer can be a contract with a expiry date in two weeks for 5 USD per unit Buy (premium). You would have to sell your existing Bitcoin or buy it before the expiry date to fulfill this obligation.
- Bitcoin -Futures with a low premium : If the Futures Prize for Bitcoin is 8,000 and the Spot price is around 7,500, a dealer can buy a contract with a expiry date in two weeks for $ 3 per unit (Premium). You would have to sell your existing Bitcoin or buy it before the expiry date to fulfill this obligation.
Diploma
In summary, understanding of the concept of the Futures bonus for the successful trade in cryptocurrencies is of essential importance. By analyzing BID-AS premiums, retailers can gain insights into the market dynamics, effectively manage the risk and develop effective trade strategies.
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