What is micro bitcoin futures?

Micro Bitcoin Futures is a product suitable for small-scale investors due to its smaller contract size, which offers lower risk exposure. Users who purchased MBT have the financial obligation to buy or sell the underlying asset at an agreed-upon price on a predetermined date.

How much does it cost to invest in bitcoin futures?

For a BTC price of $50,000, the total cost of the Bitcoin Futures contract would be $250,000, and the investor would need to deposit $125,000 (50%) as the margin.

What happens when Bitcoin futures expires?

If there are only two days to expiry, the futures price calculation formula simply tells us that the price of the Bitcoin futures contract will remain very close to its spot price because of the time remaining. But its spot price may shoot up or down significantly within hours because of high volatility.

Why do investors buy and sell bitcoin futures contracts?

When investors buy and sell Bitcoin futures contracts, they are speculating about BTC’s future price. In essence, two parties make a bet: One believes the BTC will go up in price in the future, and another bets BTC will fall in price.