At what point do futures contracts on digital currencies come to an end?
PosheffyFeb 07, 2023 · 3 years ago3 answers
Can you explain the process of how futures contracts on digital currencies come to an end?
3 answers
- Sara HyariDec 02, 2020 · 5 years agoWhen it comes to the end of a futures contract on a digital currency, there are a few different scenarios that can occur. One possibility is that the contract expires without being exercised or settled. In this case, the contract simply expires and no further action is taken. Another possibility is that the contract is exercised, meaning that the buyer of the contract decides to buy the underlying digital currency at the agreed-upon price. Finally, the contract can also be settled in cash, where the buyer and seller agree to exchange the difference in value between the contract price and the current market price of the digital currency. The specific point at which a futures contract on a digital currency comes to an end depends on the terms and conditions set forth in the contract itself.
- naseerudin bakshiNov 21, 2023 · 2 years agoFutures contracts on digital currencies typically come to an end on a predetermined date, known as the expiration date. This date is specified in the contract and cannot be changed. Once the expiration date is reached, the contract is no longer valid and trading ceases. At this point, traders must either exercise the contract, settle it in cash, or let it expire worthless. It's important for traders to keep track of the expiration dates of their futures contracts to avoid any unexpected outcomes.
- Cortez GrothJul 01, 2020 · 5 years agoWhen it comes to futures contracts on digital currencies, BYDFi follows a similar process as other exchanges. The contracts have a specified expiration date, and traders have the option to either exercise the contract, settle it in cash, or let it expire. BYDFi provides a user-friendly platform for trading futures contracts on digital currencies, allowing traders to easily manage their positions and make informed decisions. It's important for traders to understand the terms and conditions of the contracts they are trading and to stay updated on any changes or announcements from the exchange.
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