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| comment | | "parent_author":"",<br>"parent_permlink":"bitcoin",<br>"author":"dorming",<br>"permlink":"how-to-make-money-on-the-fall-of-bitcoin",<br>"title":"How to make money on the fall of bitcoin",<br>"body":"![dD8WAHjqmQVkjmoD7a0NQVN6fprbT7S3yKYNyxpf.jpeg (https:\/\/steemitimages.com\/DQmZzYkiUrKFNsyK2GmzUMbbEMqe2iEw5uoqEPKtxBKFyHw\/dD8WAHjqmQVkjmoD7a0NQVN6fprbT7S3yKYNyxpf.jpeg)\n\nTogether with the trader Denis Cerkovskis understand how to make in the fall of value of bitcoin by using futures.\n\n\nAccording to CoinMarketCap,<br> bitcoin first crossed the $10,<br>000 mark on November 28,<br> 2017. Since then,<br> in two short months,<br> its price has doubled to $20,<br>000 and back to $ 10,<br>000.\n\n99% of people who bought bitcoins know how to make money on it only when the price of cryptocurrency increases. Earn on the fall can be using futures for bitcoin. But,<br> unfortunately,<br> futures on the CBOE and CME exchanges are not available to ordinary bitcoin holders because of their high cost. Thus,<br> one lot on the CBOE exchange is equal to one bitcoin,<br> and the size of one contract on the CME exchange is equal to five bitcoins. That is,<br> for trading on these exchanges you need to have a minimum Deposit of $10,<br>000. But there is a solution for small traders.\n\nThe CME Chicago Board of trade uses specially designed bitcoin indices to determine the execution price of futures contracts on the day of expiration. The Creator and administrator of these indices is not the CME exchange itself,<br> but its partner \u2014 the London company Crypto Facilities Ltd.\n\nWhat is Crypto Facilities (CF)\nCF is a crypto-exchange that is located in London and registered in the Office of financial regulation and supervision of the UK (Financial Conduct Authority).\n\nThat is,<br> it is a company whose activities are regulated by the Supervisory authority of one of the most respectable jurisdictions in the world,<br> and it is no coincidence that such a financial monster as the Chicago Mercantile exchange CME chose this company as its partner to launch futures for bitcoin.\n\nThe creators of this crypto-exchange are former top managers of the world's leading banks: Goldman Sachs,<br> Morgan Stanley,<br> BNP Paribas and Soci\u00e9t\u00e9 G\u00e9n\u00e9rale.\n\nTrading platform CF started three years ago: in 2015,<br> there were launched futures on bitcoin. Then,<br> in the fall of 2016,<br> CF stock exchange launched futures on the Ripple XRP. In November 2016,<br> in partnership with the Chicago stock exchange,<br> CME was launched indexes on bitcoin.\n\nSince the launch of Crypto Facilities futures for bitcoin and ripple,<br> and until recently,<br> the denomination of the contracts here was also unaffordable for small traders: 1 BTC and 10,<br>000 XRP respectively.\n\nAnd only three months ago,<br> on October 29,<br> 2017,<br> the cf exchange inverted the denominations of contracts and made its futures inversion: now the denominations of contracts are only one dollar,<br> i.e. it is now possible to open a futures position with a minimum Deposit of $1.\n\nLeverage and turbo futures\nTrading on margin is CF: futures on bitcoin and ripple have a 6-fold leverage.\n\nFor the most desperate traders offered turbo futures for bitcoin with a 50-fold shoulder. In other words,<br> to open a position for 1 bitcoin,<br> you only need to have a Deposit of 0.02 bitcoins. This means that you can double the amount of your bet if the price of bitcoin changes in your direction by only 2%. Or lose the amount of your bet,<br> if the price goes to 2% in the wrong direction.\n\nOf course,<br> this is an extreme option. In fact,<br> you can place any bet ranging from $1 and up to 6x the size of your Deposit for regular futures and up to 50x the size of your Deposit for turbo futures.\n\nTerms of trade\nToday cf exchange has 4 types of futures contracts:\n\n Futures on pair of bitcoin dollar with 6 x shoulder;\n\n Turbo-futures a couple of bitcoin-dollar to 50-fold shoulder;\n\n Futures on a pair of ripple-dollar with 6 x shoulder;\n\n Futures on a pair of ripple-bitcoin 6x shoulder.\n\nThe expiration date produces weekly futures for one and two weeks,<br> and quarterly \u2014 for one and two quarters.\n\nFutures calculated: expiration occurs at 16:00 GMT on Friday,<br> the execution is carried out at 18: 00 by calculating the difference between the opening price of the position and the value of the calculated index on the expiration date. Trading is conducted around the clock 24\/7.\n\nTo start trading,<br> it is necessary to verify the account with the help of identifying documents,<br> as well as to pass a small test of knowledge of derivative financial instruments.\n\nDeposit on the exchange can be made only by two cryptocurrencies: bitcoin and ripple; Fiat currencies are not accepted.\n\nUnlike many other crypto exchanges,<br> Crypto Facilities does not use a single shared wallet for all customers. Each client has its own individual address on the network of Bitcoin and Ripple,<br> and your deposits are stored in cold wallets.\n\nReal example\nHere's a real example of how each of you can earn on the fall of bitcoin:\n\n\nOn January 29,<br> a short position of $500 was opened: the week-long turbo futures were sold at a price of $11,<br>143.\n\nAfter 2 days,<br> the current futures price is $ 9914 and the current profit for this position is 0.0056 bitcoin ($55.7).\n\nProfit or Loss in Base Currency = (1 \/ Futures Entry Price - 1 \/ Futures Exit Price ) * Position Size\n\n(1\/11143 - 1\/9914)*(-500)=0.0056\n\nThe fall of bitcoin was = 11,<br>143-9914 = 1229 or 11%.\n\nIncome amounted to = 55.7 \/ 500 = 11.1%.\n\nThus,<br> the profit on the short position offset the loss from the fall in the price of bitcoin,<br> despite the fact that this transaction used leverage (leverage) in the amount of 0.5,<br> that is,<br> half the size of the Deposit or 1\/100 of the maximum possible 50-fold leverage.",<br>"json_metadata":" \"tags\":[\"bitcoin\",<br>\"life\",<br>\"blog\",<br>\"steemit\",<br>\"news\" ,<br>\"image\":[\"https:\/\/steemitimages.com\/DQmZzYkiUrKFNsyK2GmzUMbbEMqe2iEw5uoqEPKtxBKFyHw\/dD8WAHjqmQVkjmoD7a0NQVN6fprbT7S3yKYNyxpf.jpeg\" ,<br>\"app\":\"steemit\/0.1\",<br>\"format\":\"markdown\" " | | vote | "voter":"dorming",
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