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Imagine the margin call you're going to get whenever the market swings wildly against your direction... I assume that most interested parties will use these fo

Imagine the margin call you're going to get whenever the market swings wildly against your direction... I assume that most interested parties will use these for hedging purposes, but there's bound to be a few poor souls out there waiting to use these for speculation.

scurvy 9y ago
Since these are cash settled futures, a large move up may have the unintended consequence of generating more selling pressure. If you're hedging a long BTC position with futures, you could run short of cash required to maintain the position. Thus, you would sell BTC to get USD. If this were a BTC settled contract, you would just hand over the BTC at delivery. Since these are USD settled, futures might put a damper on the rate of increase.