Introduction:
Bitcoin has become a popular investment asset for many investors around the world. One way to trade Bitcoin is through futures trading, which allows investors to speculate on the price of Bitcoin without actually owning the cryptocurrency. BTCC is one of the most popular exchanges for Bitcoin futures trading. Here we will provide an overview of BTCC Bitcoin futures trading.
What is BTCC?
BTCC is a cryptocurrency exchange founded in 2011 by Bobby Lee, a former software engineer at Google. The exchange is headquartered in Hong Kong and has branches in the United Kingdom and China. BTCC offers Bitcoin futures trading as well as spot trading for various cryptocurrencies including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
BTCC Bitcoin Futures Trading:
Bitcoin futures trading is a form of derivative trading where investors speculate on the future price of Bitcoin. Futures contracts are agreements to buy or sell Bitcoin at a predetermined price at a specific time in the future. BTCC Bitcoin futures trading allows investors to trade Bitcoin futures contracts with leverage.
BTCC offers weekly, bi-weekly, and quarterly Bitcoin futures contracts. The weekly and bi-weekly contracts expire every Friday, while the quarterly contracts expire every third Friday of March, June, September, and December. The contracts are settled in cash, meaning that investors do not actually take delivery of the underlying Bitcoin.
BTCC Bitcoin futures trading also allows investors to trade with leverage. Leverage is a loan provided by the exchange to the investor to increase the investor’s trading power. For example, if an investor has $10,000 and wants to trade with 10x leverage, the investor would have $100,000 in trading power. However, leverage is a double-edged sword, as it can amplify gains as well as losses.
Trading Fees:
BTCC charges trading fees for BTC Futures Trading. The trading fees vary depending on the type of contract and the volume traded. For weekly and bi-weekly contracts, the trading fees range from 0.05% to 0.20%. For quarterly contracts, the trading fees range from 0.02% to 0.08%. The trading fees are lower for higher trading volumes.
Margin Requirements:
Margin is the amount of money that an investor needs to have in their account to trade Bitcoin futures with leverage. BTCC has margin requirements that vary depending on the type of contract and the leverage used. For weekly and bi-weekly contracts, the margin requirements range from 1% to 20%. For quarterly contracts, the margin requirements range from 1% to 10%.
Risk Management:
BTCC Bitcoin futures trading has several risk management tools that investors can use to manage their risk. One such tool is the stop-loss order, which allows investors to set a price at which their position will automatically be closed if the price of Bitcoin moves against them. Another tool is the take-profit order, which allows investors to set a price at which their position will automatically be closed if the price of Bitcoin moves in their favor.
The Bottom Line
BTCC Bitcoin futures trading is a popular way to trade Bitcoin for many investors around the world. The exchange offers weekly, bi-weekly, and quarterly Bitcoin futures contracts, as well as leverage trading. Trading fees and margin requirements vary depending on the type of contract and the volume traded. Investors can use risk management tools such as stop-loss and take-profit orders to manage their risk. As with any investment, it is important to do your research and understand the risks involved before investing in Bitcoin futures trading.
