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1. What you describing is a forward contract, not futures. 2. Holding spot currency position is not "zero storage cost", you need to pay daily interest - futur
by nivertech 9y ago
1. What you describing is a forward contract, not futures.
2. Holding spot currency position is not "zero storage cost", you need to pay daily interest - futures has this built-in in their price.
3. Futures are leveraged
4. Futures contracts are standardized - which makes finding counterparty much easier and allow market makers.
5. Futures traded on regulated exchanges (CFTC in US), unlike spot FX - which is more similar to how crypto exchanges operate.
- joosters 9y agoWhat you describing is a forward contract, not futures. What's the point in splitting hairs. A future is a standardised form of a forward contract, generally so they can be traded more easily. It doesn't affect the underlying financial concepts.
- jnordwick 9y agoI would love to do a real crypto FX futures market. Everything i read tonight seems so amateur hour. Do the calendar spreads, implieds, volatility, high performance matching engine, and market makers.
- joosters 9y agoOpen up a crypto exchange, it's been amateur hour there for a good few years! Offer customers lots of impressive sounding derivatives features, and you can rake in the money. You don't even have to play fair, you can randomly close punters' positions at a whim, stage your own 'flash crashes' to force-sell some suckers, and eventually, when business has grown, your exchange can be 'hacked' and customer money can just vanish. Not your problem! Existing exchanges have been amazed to find out that these 'hacks' aren't even the end of the money train, you can create derivates of the hacked money to let customers re-deposit and trade even further! It is an amazing new world of finance!