【Contract Trading101】EP3:What is digital assets contract trading?

As companion series of Blockchain 101, issued by HTX, Contract Trading 101 is the beginners guide to understand contract trading-- a practical tool for hedge, arbitrage and speculation.

Digital assets contract trading is a kind of digital asset derivatives, which make the digital assets as the underlying objects.


Similar to the contract trading of physical commodities and their derivatives, according to their prediction of the price fluctuation trend, investors can make profit by buying or selling contracts via digital assets contract trading. 


On Dec. 2017, US regulatory authority, Commodity Futures trading Commission (CFTC) declared that BTC could be traded in Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE),which means institutional investors flocking in BTC forward contract trading.


Since the digital assets like Bitcoin issued, there have been various digital assets derivatives using other cryptocurrencies as underlying objects.


Investors can make profit from the contract trading via speculation, arbitrage, hedging.