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RE: CME Futures and Dealing With Volatility

in #bitcoin5 years ago

Hi @reverseacid
Thanks for sending memo.

I have gone through the whole post and understand about CME and CBOE. I don't have that much technical knowledge that why this CME contract expires. Infact I hear this expiration new after every couple of months and most of the time its adviced not to trade beacuse Bitcoin prices will be highly fluctuated this time.

About CBoE don't know much how it works but little bit understand through this post.
Thanks much for sharing useful information dear friend.
Have a great weekend..

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Hi @alokkumar121

The reason it expires is because it's like a calculated bet. Think of it like betting against your friend that a certain event will happen by the end of the month. If it happens, you make money, if it doesn't, you lose. At the start of the next month, you can enter a fresh new bet.

Crypto markets are very volatile. Don't trade them unless you are willing to take a lot of financial risk and have studied the markets for at least a year

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