What’s next for Futures Contracts?

Futures in cryptocurrency has gone from strength to strength since its introduction last year. Soon, with Dimensions Network, even more investors can enjoy what will be an integral feature on the platform.

WHERE IT ALL BEGAN

Ready for a little history lesson? It might surprise you to find out that Futures Contracts actually aren’t something devised by Wall Street-types – in fact, their origins date right back to 1750BC. The Babylonian king, Hammurabi, took it upon himself to lay out a new legal code that allowed two parties to trade at a later date for an agreed-upon price. And so, Futures Contracts were born.

HOW FUTURES CONTRACTS WORK

As we’ve already covered in this blog post about the advanced derivatives that will be available on the Dimensions Network platform. Futures Contracts are a pretty simple concept – two traders agree a price and a date for a commodity, stock or service, and when that day rolls around, the trade is made. This is different to Options Contracts; where the agreement is in principle only, and doesn't have to take place unless the purchaser of the option wants to.

FAST-FORWARD TO TODAY

So how has King Hammurabi’s legacy impacted the cryptocurrency age? Well, right from the launch on the Chicago Board Options Exchange (CBOE) on 11 December 2017, Bitcoin Futures Contracts have been particularly successful. The first week saw enough trading volume to crash the CBOE’s website – with over 1,900 short position contracts eventually being taken out by early January.

Clearly then, advanced derivatives, like Futures and Options, have a place in the cryptocurrency world.

A GATEWAY FOR BIG INVESTMENT

These new trading strategies are great news for traders and investors looking for a bit of variety – but, they’re also a way for financial institutions to get their foot in the door of the cryptocurrency world. Since CBOE’s launch, banking titans Goldman Sachs have since announced that they’re planning to start a digital currency initiative that lets its customers set up a type of Futures Contract. What we can see from this, is that Bitcoin and its altcoin offspring have caught the attention of some of the finance world’s biggest names – and that’s a massive step towards even greater growth and global adoption.

TRADING FOR THE FUTURE

There’s no doubting that cryptocurrency has turned the heads of investors big and small; and continual growth is be expected. Luckily, Dimensions Network is the only exchange on the market that’s currently creating a platform where investors big and small can trade without restraint – standard trading pairs will satisfy the average investor; while the advanced derivatives will help bigger wallets fulfil their ambitions, too.

This is also great news for DST token holders. By sharing 15% of our trading fees, you could enjoy the rewards of a hybrid trading platform and its unique next-generation features. More investment is making its way to cryptocurrency every day, and Dimensions Network is perfectly positioned to make trading so much simpler. To join our public sale, simply head to the Dimensions Network ICO page and follow the instructions…

What’s next for Futures Contracts?
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