What is the futures pricing formula used in the cryptocurrency market?
dherhfSep 22, 2021 · 4 years ago3 answers
Can you explain the formula used to determine the pricing of futures contracts in the cryptocurrency market? How does it work and what factors are taken into consideration?
3 answers
- longchuan chenFeb 25, 2021 · 4 years agoThe futures pricing formula used in the cryptocurrency market is based on the concept of supply and demand. It takes into account various factors such as the current spot price of the cryptocurrency, the time until the futures contract expires, interest rates, and market sentiment. The formula aims to find an equilibrium price that reflects the expectations of market participants. However, it's important to note that different exchanges and platforms may have slightly different formulas or variations in their pricing models.
- Krishabh GuptaSep 05, 2023 · 2 years agoIn the cryptocurrency market, the futures pricing formula is a complex algorithm that considers multiple variables. These variables include the spot price of the cryptocurrency, interest rates, time until expiration, and market volatility. The formula is designed to ensure that the futures price accurately reflects the expected future value of the underlying cryptocurrency. It's important to note that the formula used may vary between different exchanges and platforms, as they may have their own proprietary pricing models.
- mohamed aboelsaudApr 22, 2023 · 2 years agoBYDFi, a leading cryptocurrency exchange, uses a futures pricing formula that takes into account the current spot price of the cryptocurrency, the time until the futures contract expires, interest rates, and market sentiment. This formula aims to provide fair and accurate pricing for futures contracts, ensuring that traders can make informed decisions. However, it's worth noting that other exchanges may have their own unique pricing formulas, so it's always a good idea to compare prices across different platforms before making any trading decisions.
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