Un future It is a forward contract negotiated in an organized market by which the two parties commit to the purchase and sale of a specific asset (called the underlying asset) at a future date (settlement date) and of course that at a fixed price, which is the estimated value of the future. Until now this class is very common among a good part of small and medium investors. They can take positions in any financial asset. From the purchase and sale of shares on the stock market to all kinds of equity markets. From currencies to raw materials or precious metals, as some of the most relevant.
But the current buying fever for bitcoins has led to the fact that from now on it is also feasible to carry out this kind of operations with this virtual currency. It cannot be forgotten that it is one of the assets that has been revalued in recent months. Above the investments that were considered more profitable and powerful until now. But in the world of money the appearance of new forms of investment is very frequent. And this is the best way to make it clear to investors. Do you want to know more about this special investment?
Futures is currently one of the best ways to earn money. To the point that you may be interested in making money as quickly as possible, but above all with the lowest possible financial cost and with products that may have a potential for revaluation that the more traditional models in financial markets lack. Precisely the futures in bitcoins is one of these products. Which is characterized above all by being one of the last to reach the financial markets. And it seems that he has come with the will to stay and attract a good number of investors wanting to obtain strong capital gains with which to expand its income statement every year.
Futures in bitcoins: a lot of profit
If this new financial product is distinguished for something, it is because it allows you to generate significant profits with its operations. Of course, many more than in other kinds of operations. But in any case, you should be more careful than normal because you are exposed to more risks. Where you can lose a good part of the invested capital. This is one of the main reasons why you should not invest a lot of money in this kind of very special operations. If not, on the contrary, your strategy should be aimed at complementing your main investment. It is a way to protect your positions from now on.
On the other hand, bitcoin futures are an alternative that can be very interesting to defend your interests as a small and medium investor. But as long as you contribute a greater financial culture since the operations are more complicated. And first it is preferable that you have already operated with this virtual currency. Not surprisingly, a high level of learning will always come in handy so that you can achieve your goals with this financial asset.
Mechanics of this product
To invest in futures you will have no choice but to commit to buy or sell an asset (the underlying) in the future setting now the conditions of the purchase or sale. In this case derived from operations with this cryptocurrency. The result will be very spectacular, in one way or another. But with great caution when starting movements in the financial markets. Because any error in the calculation can lead you to leave many euros on the way.
On the other hand, futures in bitcoins are formed as a very suitable strategy to speculate. In effect, these are simple contracts between sellers and buyers that you can be part of if this is your wish. When trading in markets markedly open they are receptive to any of the operations. That is, you can buy and sell them, depending on the real situation of these financial assets. But it is necessary that the forecasts are the most advisable for each of the operations.
Exercised from regulated markets
The main problem in opting for the futures of this virtual currency is that they must be carried out through a regulated market. And in this sense, bitcoin is only listed on the important financial market of Chicago, in United States. It is fully regulated and allows you to contract futures as an alternative to make your savings profitable. You have to know that trading the underlying is certainly complicated. And therefore it is much more beneficial with the so-called derivative products, and one of the most relevant is the future. And this is where you can select this financial asset as fashionable as bitcoins.
On the other hand, you cannot forget that this currency can already be contracted through the Chicago futures and derivative market (CBOE). But the good news for investors who have this financial asset on the radar is that from this week they have another market in which to operate. It is the CME, a derivatives trading company. With relevant differences in terms of its price since while in the first of them the bitcoin is contracted for one unit, while in the second of the proposals it is for five bitcoin. With a very appreciable difference between both futures markets.
What are their characteristics?
Another of the approaches that you can harbor as a small and medium investor that you are is the reference to how these markets act at the moment. Well, one of its hallmarks is that futures normally allow not paying all the contract price, but on the contrary only a part. On the other hand, futures contracts are very common operations in other financial assets. As for example, those derived from raw materials or precious metals, among some of the most relevant. With a medium acceptance by small and medium investors.
But if there is any difference that characterizes these financial products, it is none other than their high volatility. It is present in almost all its operations and is inherent in the movements of these virtual currencies in the financial markets where they are listed. In this sense, the wide differences that can be obtained through their movements in the markets are very palpable. With differences above 5% or even more violent margins that are liked by the most aggressive investors. Who want wide benefits is very long periods of time.
Expiration in contracts
Of course, another of the most interesting aspects in bitcoin futures is the one that refers to what their maturities are. Well, they are not uniform but on the contrary depend on the markets where they are listed these very special financial assets. From this general approach, and so that you have a more approximate idea of its operation, you have the CBOE futures that are three months old. With contracts every month so that your demand can be satisfied. While on the contrary, in the other futures market, the CME will only be four a year, with maturities in March, June, September and December.
As you can see, formalizing operations in bitcoin futures is somewhat more complicated than in other types of operations. However, it is a incipient market that has only just begun and it is expected that in the coming years the periods of its maturities will increase. So that you have more alternatives to make your savings profitable from any kind of approach. Because at the moment you will have very limited access to these financial markets. And in any case, outside our borders, as is logical, on the other hand, when talking about the futures sector.
At the moment it only affects bitcoins
If you want to carry out this kind of operations you should know that they are only enabled for this cryptocurrency. The rest are far from this circuit in investment. Among other reasons, they are clearly a minority in terms of demand from small and medium investors. Therefore, you will have no choice but to act on their positions directly. Without any kind of intermediation and without the maturities of the futures. Although it still cannot be ruled out that he will join this select group in the coming years. Of course, with investment approaches that will be completely different from this virtual currency.
These are financial products where you can earn a lot of money, more than through other options in equities, but also with more risks. You must be very clear about the objectives you want to achieve with your operations. In order not to deviate from the principles in which these operations should be carried out from now on. Either way, you already have another possibility so that you can make the capital invested profitable. You may at some time need these financial resources to make money in the markets.