Bitcoin futures trading platform CME sets new records. The Chicago Mercantile Exchange passes the plagued BitMEX on the basis of the open interest for bitcoin futures. OKEx is still the big leader in this field.
There seems to be a bit of a row going on against platforms Cryptosoft of this kind, as a founder of OKEx was arrested earlier this month. Recently BitMEX has also been sued by the US authorities, another important reason for the rise in the CME ranking.
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What exactly are bitcoin futures?
In essence, you can bet on the future price of bitcoin with a bitcoin future. For example, with a future you can buy the right to buy $10,000 bitcoin in 30 days. The person whose right you have bought naturally hopes that the price will drop below $10,000.
If the price drops below $10,000 you will not be able to use that right. For example, you have paid $50 and received nothing for it. So in fact you are gambling on the future price of bitcoin.
This can be useful, for example, if you have a large amount of money at your disposal in 30 days‘ time. If you want to buy bitcoin with that and you are afraid that the price will rise considerably. Then it is attractive to buy futures.
Then you can be sure that in a month’s time you will still be able to buy bitcoin for the agreed amount.
How big is the trade in bitcoin futures?
There are currently $790 million worth of futures contracts open at CME. Market leader OKEx quotes $960 million and BitMEX has to make do with $610 million. Those are not nauseating figures! It is important to understand that you are not buying real bitcoin with this.
Until recently, BitMEX was a lot bigger than the American CME, but that has changed. This has everything to do with the recent legal action brought by the US authorities against the platform.