The reason why some traders love future contracts

in #bitcoin5 years ago

Simply, because in that way they can sell futures to build short positions without borrowing the asset & paying interest rate. That way the pressure on buyers will increases, aside from that they have to choices it's either buy the asset itself or the futures contracts. so that, they no longer need to pay for storage of the underlying assets.

Have a better insight into by reading this article via this link: https://medium.com/mark-price/can-you-drop-bitcoin-price-with-futures-contracts-81e8a45fc0750_ajSkYJmDjNsk-dSk.jpg

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