Coinfloor, a London-based cryptocurrency exchange for institutional and veteran investors and traders, plans a futures swap for the first physically delivered Bitcoin-containing cryptocurrency futures contract.
In a press release by Coinfloor. According to the new Exchange activity CoinfloorEX, it will help miners, hedge funds, traders and seasoned investors unlock the financial potential of Bitcoin.. The operation will be conducted through specially designed cryptocurrency contracts and operational controls, supported by enterprise-class risk management and control.
Cryptocurrency futures contract will provide price protection
The first physically delivered cryptocurrencies With the introduction of currency futures contracts, CoinfloorEX will protect investors and traders from market manipulation concerns.. It is also stated that it is designed to protect against price slippage in the positions during the settlement.
The clearing process is based on physical delivery rather than price index on other exchanges, providing higher pricing transparency.
Coinfloor’s upfront transaction. access to the foreign exchange market will enable investors to convert Bitcoin from fiat currency to physical delivery. Thus, it will provide opportunities for them to meet their long-term monetary value appreciation or Bitcoin-denominated obligations.
The exchange is secured by 100 percent multi-wet signature storage.. In addition, client portfolios are protected against theft, loss, or other security issues related to partially online and online-only storage.
Coinfloor also provides monthly payment control of Bitcoin balances.. The first physical delivery contract will start in April in Bitcoin.
Obi Nwosu, CEO of Coinfloor, said:
Our mission is fiat currency and cryptocurrency. to establish a bridge between the currency unit to ensure the stability and sustainability of cryptocurrencies. Market participants are demanding that futures contracts move from cash to physical deals.
Cryptocurrency futures contract will respond to market needs
Coinfloor co-founder Mark Lamb, Futures Industry Association’ He told Reuters at its annual conference in Boca Raton, Florida; He said that liquid providers want to enter a physically received futures contract to hedge their exposure to the stock market.
CME Group Inc.. and Cboe Global Markets Inc.. A few traditional futures exchanges, such as the coin, trade in cash-settled bitcoin futures, where the cryptocurrency itself does not change hands.. He also said that malicious investors can set futures prices in their favor with indices or auction price movements in the spot markets. It includes Chicago-based trading company DRW, another company in Gibraltar.
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