Investment analysis of Crypto assets, bitcoin and trading rules and risks. Investors can understand the BR exchange rate as the reference exchange rate of the bitcoin dollar price. It is published once a day and summarizes the major bitcoin spot exchanges. As of 4 PM GMT, the transaction flow in the window is calculated in one hour Calculation of Bitcoin’s USD price.
From the above contract, the value of a Bitcoin futures contract is five times the price of the Bitcoin reference exchange rate index. How much is quoted in US dollars per bitcoin? The minimum change price is a multiple of five dollars per bitcoin, that is to say, a minimum change price of bitcoin futures is equivalent to 25 dollars.
According to information from the Chicago Board of Exchange, bitcoin futures are eligible for bulk trading, with a minimum trading threshold of five contracts. As an investor, you must carefully analyze the probability of the occurrence of risks. The amount of loss that may be triggered under each risk probability is only worth the investment if the potential expected return is higher than expected.
For the Bitcoin contract, we consider his risks from the following aspects.
First, the general investment and financial risks associated with futures trading. Bitcoin futures contracts naturally carry the risk characteristics of all derivatives, including the knowledge threshold of investors, the risks brought by the high leverage investment of futures, the extremely high volatility leverage, rolling margin and settlement risks related to the price of Bitcoin. Market order risk.
Second, the risks associated with the Bitcoin contract mechanism. 12B22 Exchange rate risk, the value of the Bitcoin contract based on BR may deviate significantly from the public quotation of Bitcoin. After all, Bitcoin as a future reflects the expected value of BR at a certain point in the future. Uncertainty of risk exposure. Since Bitcoin is a new product, it is still unclear to what extent he may provide exposure to bitcoin price changes.
Third, component exchange risk. Different jurisdictions in the world have their own exchanges for bitcoin and other cryptocurrencies. The pricing of bitcoin on this exchange is based on the domestic market conditions of cryptocurrency transactions, which may cause price risk.
Fourth, specific risks as alternative investment products. Bitcoin, as the underlying asset of special investment products, is a Crypto currency and a virtual asset. It has not yet been officially recognized by most governments around the world, and there may be risks that price volatility is difficult to value.
Fifth, liquidity risk , counterparty risk, transaction time and price limit risk, and no risk of insurance loss.
The risks associated with Bitcoin regulation and compliance. Investor supervision risks for Bitcoin contracts are as follows.
The use and implementation of many laws and regulations are uncertain. It is not yet possible to predict how regulatory changes will affect the liquidity of Bitcoin prices. Especially after the global financial tsunami, countries have stepped up anti-money laundering and anti-terrorist financing. The laurel of risk may have a significant adverse effect on the price flow of bitcoin and bitcoin futures, and may even erase the entire value. At present, acquiring, owning, holding, selling or using bitcoin in one or more countries may still be judged illegal, which may adversely affect the price and liquidity of bitcoin.
At present, the global regulatory authority for bitcoin and other Crypto assets is different, and in the process of continuous evolution, bitcoin in different jurisdictions adopts different laws, and the classification is called the big difference, which may hinder the bitcoin economy. Growth, and adversely affect consumers’ bitcoin acceptance.
The description of bitcoin taxation is uncertain in some jurisdictions, and the current attitudes of various countries to bitcoin transactions and taxation issues arising from bitcoin derivatives exchanges are very vague, and this factor has not been considered at all. The Bitcoin network is maintained by core developers and is not owned by any single entity, but it cannot be ruled out that there may be a third party to file a smart property right complaint regarding the operation of the Bitcoin network. Regardless of whether such a lawsuit has a legal basis, any complaint may have a negative impact on the price and liquidity of Bitcoin.
The risks associated with Bitcoin’s own development. Including the lack of public interest in Bitcoin, competitors in other currencies, cyber fraud and security breaches, hacking and cyber attacks. Swiss Action and botnets use the stolen mining capabilities to construct deceptive zoning and prevent transactions from being completed in time, with potential risks associated with forking.