The market has been having bitcoin, ethereum and XRP futures locking out Litecoin investors from enjoying the benefits that come with cryptocurrency futures. But not anymore. Litecoin (LTC) futures will be available from Friday the 22nd.
Crypto Facilities, a U.K virtual currency futures trading platform, has indicated that it will be launching Litecoin futures to start trading from 22nd June 2018 as reported by coindesk.
For maturity of the Litecoin futures, investors will have an option to choose from either quarterly, monthly or weekly maturity periods and, of course, investors can long or short the futures. What’s notable with the futures is that it will have Litecoin (LTC) as the underlying collateral. For crypto Facilities, the decision to add Litecoin futures was not blindly calculated but came after clients insisted on having one.
Charlie Lee, Litecoin’s founder, noted that institutional investors will have a chance to trade Litecoin (LTC). For a long time, institutional investors have turned away from the virtual currency market due to the high price volatility associated with cryptos. But with more futures contracts, they will be comfortable entering the market thereby raising the crypto liquidity levels.
As reported earlier by cryptolinenews, ethereum enthusiasts were treated to a similar futures contract last month from Crypto Facilities. The futures trading platform also has bitcoin and ripple (XRP) futures.
A futures contract in the cryptocurrency space is not different from a futures contract in the financial markets. The two terms that are significant in a futures contract are long and short positions. A long position indicates buying while a short position indicates selling.
Although a futures contract may come with profits, it is mainly used to protect against price fluctuation thus reducing the chances of incurring losses. This is because the price of the underlying asset will be marked price in the futures contract whether the price has dropped or increased at the time of contract maturation.
Now that Litecoin (LTC) futures will be available from Friday, do you think Litecoin will immediately see increased trading and liquidity?
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