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What is the formula to calculate futures prices in the cryptocurrency market?

avatarMohamad DuckworthDec 26, 2021 · 3 years ago3 answers

Can you explain the formula used to calculate futures prices in the cryptocurrency market? I'm interested in understanding how the prices are determined for futures contracts in the cryptocurrency industry.

What is the formula to calculate futures prices in the cryptocurrency market?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    The formula to calculate futures prices in the cryptocurrency market is based on the concept of the spot price and the cost of carry. The spot price refers to the current market price of the cryptocurrency, while the cost of carry includes factors such as interest rates, storage costs, and dividends. By taking into account these factors, the formula calculates the expected future price of the cryptocurrency. It's important to note that the formula may vary depending on the specific cryptocurrency and exchange.
  • avatarDec 26, 2021 · 3 years ago
    Calculating futures prices in the cryptocurrency market can be a complex process. The formula takes into account various factors such as the current spot price, interest rates, time to expiration, and market expectations. These factors are used to estimate the future price of the cryptocurrency. It's worth mentioning that different exchanges may have slightly different formulas or variations in their calculations. It's always a good idea to consult the specific exchange's documentation or reach out to their customer support for more information on their formula for calculating futures prices.
  • avatarDec 26, 2021 · 3 years ago
    At BYDFi, we use a proprietary formula to calculate futures prices in the cryptocurrency market. Our formula takes into account factors such as the current spot price, market volatility, and demand-supply dynamics. We continuously refine and update our formula to ensure accurate and fair pricing for our futures contracts. If you have any specific questions about our formula or how we calculate futures prices, feel free to reach out to our customer support team for more information.