
Usually futures contract work in perpetuity, a future reference of the present value of your money. It moves to the underlying value associated with it and changes the price from it’s different rates. The rates are either premium rates or discount/ spot rates. Premium rates are high rates that will earn you profit and discount rates or the spot rates are the lowest possible rates you should start trading with to realise profit in the future.
Futures Bitcoin Trading Strategies
A common form of trading used is a type called speed trading. This is whereby long and short trades take advantage of fluctuation of prices in the market and you earn profits from it. Long trades refers to buying stock and waiting for the prices to rise in the future so you can sell and earn. Like in the stock market. While the short trade refers to buying ad selling almost simultaneously with the knowledge of a price difference that will get you your profit. The long and short trades work together and use a simple tool called arbitrage where you pre determine the future value of a commodity, put some stake on and wait for the profit to come flowing.
Unlike normal bitcoin strategies, the futures trading exerts a huge leverage thereby providing a good opportunity for the traders. In lay terms, the traders do not have to invest a lot of money to benefit from the trade. Brokerage in futures trading is very advantageous as well. The commission fees you are to pay them is subsequently low to the normal fees you would pay to trade in the stock market. Besides that, you will always earn whether there is an upside or a downside in the market. This is very good for the extra cautious traders.

Liquidity of the futures trading is a strategy meant to give freedom to its traders. One can buy bitcoin at a specified spot price and sell the futures at a premium rate at any given time, there are no long procedures to follow like the normal cryptocurrency exchange process. It is all fast a one click away. In futures trading, you use BTC, this is a value of you bitcoin but it is represented with the USD you used to buy into the contract. This will allow you to trade easily and fairly in the market. Because you are getting post funded, the value you are using now is alternatively low, this reduces your hedge risk. Many traders prefer this because you get to earn even on income that is not yours if let’s say you had borrowed a few dollars from a friend.