Bitcoin futures trading will send prices to 50 in
In this guide we don't want to deal with social loss risk, so use the FCA-regulated, London-based bitcoin derivatives exchange CryptoFacilities. Sign up here to get started: CryptoFacilities offers Forwards contracts with no socialized losses. Making money arbitraging bitcoin futures can be extremely simple. Futures contracts typically trade at a premium , and all you have to do, starting with USD, is buy bitcoin at Spot price and sell futures of the same amount at premium price.
Then just wait until expiration to make your arb profit in bitcoin which you can then put in USD. Whether it's a weekly, monthly, quarterly, or any futures contract, as long as it's in a premium, you lock in the sale price and earn the arbitrage profit.
There's a lot of ins and outs which can get confusing in arbitrage trading. We won't go into the technicals of why futures contracts trade at a premium to spot price.
We will go through all of these issues below. I find it best to show by example and then as issues are encountered we will review the concepts underlying. This example is to illustrate all the moving parts and risks that can occur in an arb play. Another example will follow with a different scenario. You might be thinking, wtf? I thought arbitrage was guaranteed money? Well, in reality there's lots of services facilitating this process which demand fees. Therefore, when you take that into account, you need to wait for the premiums on futures contracts to reach a sufficient level that it makes sense to go through this process.
Let's still say it's a Monday and there's a contract expiring 2 weeks from now 11 days to be precise. Based on our team's investigation, the user closed a huge amount of positions at market price without considering the cost, causing it to drop to an unusually low level.
We will disclose the transactions details in further notice. If required, OKEx reserves the right to close accounts, limit trading, halt trading, cancel transactions, and rollback transactions to eliminate any adverse effects in the futures market. The rollback is expected to be completed at around We will update the status in every 2 hours. Fiat and Token Trading will not be affected.
As today is the settlement date, weekly futures contracts will be delivered, while bi-weekly and quarterly will be settled after the rollback, according to the price at 5: Trading will be resumed after the settlement. For users who transferred funds from futures account to spot account after 5: OKEx always has the customers' best interests at heart, and we are dedicated to providing the best products and technologies to protect our customers. Transactions were suspended for several hours due to the incident.
Please accept our sincere apologies for the inconvenience caused. Transaction fees of Futures Trading will be waived for 7 days starting Existing Price limit rules: New Price limit rules: The details are as follows: When delivery is completed, trading will resume. We will keep you posted on any further update from the team. According to the term 6. Trading will be resumed after the settlement For users who transferred funds from futures account to spot account after 5: