Written By Are you a crypto trader who’s been eagerly waiting for the next big thing in the world of Bitcoin? Look no further than Deribit’s latest offering: groundbreaking Bitcoin volatility futures! With these innovative new tools, traders can now profit from both high and low volatility scenarios, making it easier than ever to stay ahead of the pack. So if you’re ready to take your trading game to the next level, join us as we explore all that Deribit’s exciting new product has to offer.
What are Bitcoin Volatility Futures?
Crypto traders rejoice: Deribit launches groundbreaking Bitcoin volatility futures. The long-awaited product is finally live, and it promises to revolutionize the way we trade digital currencies.
What are Bitcoin Volatility Futures?
Bitcoin volatility futures are a new type of derivative that allows traders to speculate on the future price of Bitcoin. The contract is settled in cash, meaning that there is no need to actually own any bitcoins. This makes it an ideal tool for hedging or speculation, as it provides a way to take a position on BTC price movements without having to go through the hassle of buying and selling actual bitcoins.
The launch of bitcoin volatility futures on Deribit marks a milestone in the development of the cryptocurrency markets. Up until now, there has been no easy way to trade crypto volatility. This new product will make it possible for traders to take advantage of price swings in either direction, without having to own any bitcoins.
How do Bitcoin Volatility Futures work?
Volatility futures are derivatives that allow traders to speculate on the future direction of asset prices. In the case of Bitcoin, Deribit’s volatility futures contract is based on the 30-day historical volatility of the Bitcoin spot price, as measured by the BTC/USD pair on the Bitstamp exchange.
The contract is priced in US dollars and has a tick size of 0.01%. The minimum contract size is 1 bitcoin, and there is no maximum contract size. The contract is traded on Deribit’s online platform and can be settled in either cash or bitcoin.
To enter a trade, a trader must first choose whether they think the volatility will rise or fall over the term of the contract. They then put down a deposit, known as margin, which is a percentage of the value of the contract.
For example, if a trader thinks that the 30-day historical volatility will increase from its current level of 10% to 12% over the next month, they would buy a ‘call’ option with a strike price of 12%. This means that if at any point during the month-long period covered by the contract the 30-day historical volatility exceeds 12%, they will make a profit. If it doesn’t, they will lose their margin.
What are the benefits of Bitcoin Volatility Futures?
Bitcoin Volatility Futures offer a number of benefits for traders, including the ability to hedge against volatility and take advantage of price movements.
The launch of Bitcoin Volatility Futures by Deribit is a groundbreaking development in the world of cryptocurrency trading. These futures contracts will allow traders to hedge against volatility and take advantage of price movements.
Bitcoin Volatility Futures will be available for trading on the Deribit platform from December 18, 2017.
How to trade Bitcoin Volatility Futures
Those who trade cryptocurrency are always looking for new ways to capitalize on market volatility, and Deribit’s new Bitcoin Volatility Futures are a perfect example. This product allows traders to take a long or short position on the 30-day historical volatility of BTC, meaning they can profit from price swings in either direction.
Here’s a step-by-step guide on how to trade Bitcoin Volatility Futures:
1. Sign up for a Deribit account and fund it with Bitcoin. You’ll need at least 0.01 BTC to trade one contract.
2. Select “Bitcoin Volatility Futures” from the list of products on the left side of the screen.
3. Choose whether you want to take a long or short position. A long position means you expect the value of BTC to increase, while a short position means you think it will decrease.
4. Enter the amount of contracts you want to trade in the “Quantity” field and click “Buy” or “Sell”.
Conclusion
Deribit’s groundbreaking Bitcoin volatility futures have provided traders with a much-needed boost in the crypto market. With these contracts, traders can now protect themselves from big losses and gain exposure to daily price volatility without having to buy or sell actual coins. This product is sure to bring more stability and liquidity into the cryptocurrency markets, making them more attractive for investors of all levels. For those looking to enter the crypto trading world, this could be an ideal starting point as you can now get reliable pricing information with minimal effort.
