Chapter 8
Cryptocurrency Futures and Options
IN THIS CHAPTER
Getting to know the basics of futures and options
Trading cryptocurrency derivatives
Futures and options are two forms of a general financial instrument called derivatives. They derive their value from the price action of something else — traditionally, from financial assets like stocks, commodities, fiat (government-backed) currencies, and other market indexes. As the cryptocurrency market becomes more popular, different cryptocurrency derivatives have been popping up and are accessible to individual traders.
In this chapter, you get an overview of the basics of futures and options trading, and then explore how they work in the crypto market.
At the time of this writing, many regulations exist around such assets, so you can invest in them through a handful of brokers and exchanges around the world. In the United States, Bitcoin futures trading is available through a handful of brokers and exchanges such as these:
- CME Group:
www.cmegroup.com/trading/bitcoin-futures.html - E*Trade:
https://us.etrade.com/what-we-offer/investment-choices/futures#tab2_8 - Interactive Brokers:
www.interactivebrokers.com/en/home.php - TD Ameritrade: ...
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