Re:Goldman Sachs Plans to Clear Bitcoin Futures When They Go...
by cm2187 on Thursday December 07, 2017 @07:14PM
(#15875589)
I am not sure I get how the risk is limited with a future. If the price goes to $1m when you traded at $16,000, you will have to make a $984,000 margin call payment (+margin).
With futures, however, you can put together positions that will provide a known limit on your downside for short positions. This provides a more appealing avenue for shorts to get in with much less risk.