BaseFEX, a cryptocurrency derivative exchange with futures

in #basefexlast year

Check out this building, could it be the future office of BaseFEX?

What is these futures, I can hear you asking. Let me explain using an example from a dairy farmer. The farmer, let's call him Bob, sells his milk to cheese makers throughout the year for 1 USD per liter. The trouble is, Bob needs more money when he is paying for his veterinarian, or when he is buying feed for his cows. The cheesemaker says he has some money sitting aside, and he can pay Bob in advance, but it will probably be cheaper. He then proceeds to pay Bob for the whole year, about 0.80 USD per liter. At the end of the year, if Bob did not have enough milk for the amount agreed, he pays the cheesemaker back some of his money. If Bob produced more milk than the agreed amount, he sells the excess milk with the market price, which could be 0.60 USD or 1.30 USD. The cheese maker takes a risk by predicting the “future” prices of milk, so he pays Bob less than the market price at the time of purchase.
Futures work a little different in cryptocurrency. A lot of times no physical, or digital bitcoin changes hands. Different customers agree on a contract, and the contract prices fluctuate based on the market. Let's say a contract is signed for three months for a price of 6000 USD on bitcoin. If at the end of the deal the rate is higher than that, the client betting that the price is 6K will have to pay the difference in cash. If it is lower than 6K, the other client pays. Futures are one of the tools called derivatives because they are not the physical or digital item, but derivatives of the economic items. A more extensive example of derivatives is the derivatives from real estate and mortgage. If there are ten mortgages with some risk, some people bet that they will pay their mortgage just fine. As the people paying their mortgages decrease in income or education, the risk increases and the number of positive bets on them decrease, pushing that group down to bottom of the derivatives. Higher risk derivatives tend to make more money if the people pay off their mortgages, but they tend to lose more times compared to class A mortgage bonds/groups.

I have registered the BaseFEX exchange, and I am pleased that this is one of the rare gems that lets ordinary people like you and me play around futures. A lot of times I see some forks that are supposed to be doing great or some IEOs that I cannot get into. For example, I definitely knew that BTT, BitTorrent would do great yet I could not get into the IEO. If BaseFEX was around at the time, I could directly purchase futures and make some money out of it.
I am pleased they are opening shop now!

https://www.basefex.com/
https://twitter.com/BaseFEX
https://t.me/BaseFEX_Trading
https://www.basefex.com/register/2yjzx4

Bitcointalk Profile: https://bitcointalk.org/index.php?action=profile;u=1320709

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