Ethereum futures are enjoying a larger premium compared to spot prices. The first sign of this occurred on the Binance cryptocurrency exchange on Monday. The BTCC, CME and FTX also see Ethereum futures trading at a discount to spot prices. It seems that this isn’t a temporary phenomenon.
Ethereum futures trading is now available through Binance’s Futures trading platform. This type of trading allows for 100x leverage, which allows traders to create large ETH positions with little or no money down. Furthermore, futures contracts also offer the option to short ETH, a strategy that allows traders to make a profit when the price of ETH declines. However, it is important to note that futures contracts are not real-world assets, and they involve high market risks.
For this reason, trading fees are an important factor when choosing a futures exchange. In day trading, fees can add up quickly, so fees should be considered when choosing a futures trading platform. The fees for trading futures on Binance are transparent and easy to understand. They charge 0.02% for the maker fee and 0.04% for the taker fee. In exchange for this fee, traders must hold Binance Coin and maintain a high volume of BTC turnover.
Ethereum futures trading is a market in which a buyer agrees to buy or sell a specific amount of a particular asset at a specific future date. The underlying asset is Ethereum, a digital currency. Ether futures are traded on the Chicago Mercantile Exchange (CME).
The CME is making its way into the crypto derivatives market. It plans to launch options trading for Ether futures on Sept. 12. It also plans to add micro-sized Bitcoin and Ether options by March 2022.
CME Ether-Dollar reference rate (ETHUSD_RR)
The CME Ether-Dollar reference rates (ETHUSD_RR) are designed to provide investors with a daily reference rate of the value of one Ether in US dollars. These rates are determined by aggregating the trade volumes of six major ether spot exchanges. The methodology is intended to provide maximum transparency and replicability.
The CME Group Ether futures contract settles to the ETHUSD_RR on the last Friday of the contract month. In September, the contract settlement date is Friday, Sept. 30. Regardless of whether there is a hard fork in ether, the standard Ether futures will settle to the ETHUSD_RR. However, the ETHUSD_RR will only reflect ether on the new PoS blockchain and will not include price activity in the new ETHPOW coin.
BTCC https://www.btcc.com/ offers a variety of trading options for Ethereum futures. These include short and long positions. Short positions return profits when the price declines, while long positions return profits when the price rises. BTCC also offers up to 50x leverage for these contracts. This means that you can get up to 50 times your investment without having to pay any money up front.
BTCC has an institutional grade platform that offers low-latency trading. It features more than 70 crypto-to-crypto trading pairs. Furthermore, it offers futures and Perpetual Contracts for some of the biggest crypto assets. BTCC also provides a high level of customer support and offers real-time pricing. It also offers news, sentiment index, and peer-to-peer trading. You can trade using your local currency, as well as credit/debit cards.