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Trading in Bitcoin
02 Jun 2021 (529 views)

The most convenient way to trade Bitcoin is to use the Bitcoin Futures. I use the Phillips Nova platform provided by Phillips Futures, which is part of the Phillips Securities group.

When I trade a Futures contract, I have to choice to buy the contract or sell the contract. If I buy a contract, I make a gain when the price moves up and a loss when the price comes down.

When I sell a contract, it goes the other way round. I make a gain when the price comes down and a loss when the price goes up.

When I trade a Futures contract, I have to select the expiry month. If I have to hedge a position in several months time, I will choose a contract that expire at that month. 

When I trade for speculation, I choose the current active month, where this is a large volume of trading. The active month is the contract that expire on the 28th of the current month.

When I trade in Bitcoin, I can choose either of the followng:

a) Bitcoin contract with a lot size of 5 bitcoin and a margin of $159,000 USD
b) Micro Bitcoin with a lot size of 0.1 bitcoin and a margin of $3,100 USD.

The regular Bitcoin contract is 50 times the size of the micro Bitcoin contract. This is reflected in the margin that has to be provided by the trader to the platform.

Another consideration is the commission that I pay to the platform. I pay $50 for a Bitcoin contract and $5 for a micro contract. The Bitcoin contract is 50 times the size of the micro contract, so the commission is much lower for the amount that is traded.

Please note that trading is speculation. It is gambling. It is not different from going to the roulette table in the casino and betting say $1,000 or $5,000 on black or white. 

In my case, I hold the view that Bitcoin is overpriced and is likely to fall. I am therefore willing to sell the Bitcoin Future contract. I also hold the view that Gold is likely to rise. I buy the Gold Future contract.

This is my personal view. It is not investment advice for anyone to take a position in Bitcoin or Gold.

Due to the volatile nature of the Bitcoin and Gold price, I am prepared to clear my position at a profit or loss. 

Note - this is not investment advice. I am sharing a personal opinion.

Tan Kin Lian


 


Trading in Bitcoin
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The most convenient way to trade Bitcoin is to use the Bitcoin Futures. I use the Phillips Nova platform provided by Phillips Futures, which is part of the Phillips Securities group.

When I trade a Futures contract, I have to choice to buy the contract or sell the contract. If I buy a contract, I make a gain when the price moves up and a loss when the price comes down.

When I sell a contract, it goes the other way round. I make a gain when the price comes down and a loss when the price goes up.

When I trade a Futures contract, I have to select the expiry month. If I have to hedge a position in several months time, I will choose a contract that expire at that month. 

When I trade for speculation, I choose the current active month, where this is a large volume of trading. The active month is the contract that expire on the 28th of the current month.

When I trade in Bitcoin, I can choose either of the followng:

a) Bitcoin contract with a lot size of 5 bitcoin and a margin of $159,000 USD
b) Micro Bitcoin with a lot size of 0.1 bitcoin and a margin of $3,100 USD.

The regular Bitcoin contract is 50 times the size of the micro Bitcoin contract. This is reflected in the margin that has to be provided by the trader to the platform.

Another consideration is the commission that I pay to the platform. I pay $50 for a Bitcoin contract and $5 for a micro contract. The Bitcoin contract is 50 times the size of the micro contract, so the commission is much lower for the amount that is traded.

Please note that trading is speculation. It is gambling. It is not different from going to the roulette table in the casino and betting say $1,000 or $5,000 on black or white. 

In my case, I hold the view that Bitcoin is overpriced and is likely to fall. I am therefore willing to sell the Bitcoin Future contract. I also hold the view that Gold is likely to rise. I buy the Gold Future contract.

This is my personal view. It is not investment advice for anyone to take a position in Bitcoin or Gold.

Due to the volatile nature of the Bitcoin and Gold price, I am prepared to clear my position at a profit or loss. 

Note - this is not investment advice. I am sharing a personal opinion.

Tan Kin Lian