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It’s about risk management. The highest volume futures contracts are cash settled as well(ES, NQ, ZB, 6E’s). Example usage 1: you may want to own BTC and de-ri
by module0000 9y ago
It’s about risk management. The highest volume futures contracts are cash settled as well(ES, NQ, ZB, 6E’s).
Example usage 1: you may want to own BTC and de-risk before economic events by hedging <x>% short BTC contracts.
- kgwgk 9y agoAs if there was any link between BTC and economic events...
- tehlike 9y agowas this a /s? IF it's not: With the current HODL mentality, you can imagine the bitcoin price go even higher. I wish the same HODL'ers were around in 2008, things would have been much different. "Buy the dips" is the best investment strategy that became mainstream thanks to bitcoin.
- ryanwaggoner 9y agoWait, I’m sorry, are you claiming that Bitcoin HODL’ers gave us the ‘buy the dips’ strategy? :)
- tehlike 9y agoNo, i said they made it mainstream, to the guy who had 500$ as investment.
- module0000 9y agoThere is a link between all currencies with value and major economic events. FOMC minutes, FOMC rate decisions, GDP, NFP... just to name a few. Look at your BTC quotes at the timeframes those events are released to see for yourself.