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RE: What do the introduction of Futures Products really mean for the price of Bitcoin?

in #bitcoin7 years ago

Looks like you edited this comment which makes my reply below make no sense! Anyway I don't believe the underlying asset ever needs to be bought - you can just pay the difference in price in USD. That's what it means by the contracts will be settled in cash.

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That's right. Margin calls are settled based on the closing physicals price (CBOE is basis Gemini and CME is based on index. Big moves on the physicals price will affect the margin levels required to maintain positions.