Questions tagged [futures]

Andrea Fri Sep 06 2024 | 6 answers 1000

Could you please explain in detail what the futures cost of carry entails? As an investor in the cryptocurrency and finance space, I understand that futures contracts involve buying or selling an asset at a future date at a predetermined price. However, I'm not entirely clear on how the futures cost of carry fits into this equation and how it impacts the overall profitability of such transactions. Could you elaborate on its significance and potential impact on my investment strategies?

DavidLee Fri Sep 06 2024 | 6 answers 1527

Excuse me, I'm a bit confused about the specifics of holding futures overnight. Could you please elaborate on whether it's feasible to maintain a position in futures contracts beyond the regular trading hours? I understand that futures trading can be quite complex, and I'm keen to ensure that I'm making informed decisions regarding my investments. Additionally, are there any specific risks or considerations that I should be aware of when contemplating holding futures overnight? Your guidance would be greatly appreciated.

CryptoMagician Fri Sep 06 2024 | 6 answers 1008

Excuse me, could you please clarify the fee structure for trading FTX futures? Are there any initial fees for opening a position, or are there ongoing fees such as rollover charges or funding rates? Also, are there any additional fees for high-volume traders or for using certain features of the platform? I'm interested in understanding the overall cost of trading FTX futures so that I can make an informed decision about whether it's the right platform for me. Thank you for your help.

Eleonora Fri Sep 06 2024 | 5 answers 1070

If you don't sell your futures contracts before the expiration date, a few things can happen. Firstly, you may be obligated to fulfill the terms of the contract, which could involve delivering the underlying asset, such as a commodity or security, to the buyer at the agreed-upon price. This can be a challenge, especially if you don't have access to the asset or if its market price has significantly changed since the contract was established. Secondly, if you're holding a losing position in your futures contract, not selling could result in significant financial losses. Futures trading is a Leveraged product, meaning that you only need to put down a fraction of the total value of the contract to open a position. However, your losses can still be significant if the market moves against you. Lastly, holding onto a futures contract that's approaching expiration can be risky because the market's liquidity may decrease as the expiration date nears. This can make it harder to sell your contract at a fair price and could lead to slippage, where your trade executes at a less favorable price than you intended. So, in summary, not selling your futures contracts before expiration can result in obligations to fulfill the contract, significant financial losses, and decreased liquidity in the market. It's important to carefully manage your risk and monitor your positions as the expiration date approaches.

CryptoWizardry Fri Sep 06 2024 | 7 answers 1529

Are you curious about the potential earnings from trading futures in the cryptocurrency and finance world? It's a legitimate question, as futures trading offers the opportunity to speculate on the future price movements of assets like Bitcoin, Ether, and other digital currencies. But how much can you actually make? Well, it depends on several factors, including your trading strategy, risk tolerance, and market conditions. Futures trading involves leverage, which can amplify both profits and losses. This means that with the right market movements and a well-executed trading plan, the sky's the limit in terms of potential earnings. However, it's important to remember that futures trading is also highly volatile and risky, so it's crucial to manage your risk and have a solid understanding of the market before diving in. So, the short answer to your question is that the amount you can make with futures trading depends on your individual circumstances and the market's performance. But with the right approach, it's possible to achieve significant returns in the cryptocurrency and finance space.