What is the fair value of Bitcoin futures?

3 answers

• It's yasmineJul 28, 2025 · 19 days ago
  The fair value of Bitcoin futures refers to the theoretical price at which the futures contract should be trading. It is determined by various factors such as the spot price of Bitcoin, interest rates, time to expiration, and market sentiment. Traders and investors use fair value to assess whether the futures contract is overvalued or undervalued compared to the spot price. By monitoring the fair value, they can potentially exploit any price discrepancies for profit-making opportunities.
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• JunoMay 25, 2021 · 4 years ago
  The fair value of Bitcoin futures is calculated using complex mathematical models that take into account the current price of Bitcoin, the risk-free interest rate, and the time to expiration of the futures contract. These models help determine the expected future price of Bitcoin and adjust it for factors such as interest rates and market conditions. It's important to note that the fair value is not a guaranteed prediction of the actual future price, but rather a theoretical estimate based on the available data.
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• FU4YDec 12, 2024 · 8 months ago
  According to BYDFi, a leading cryptocurrency exchange, the fair value of Bitcoin futures is determined through a combination of market data and sophisticated algorithms. BYDFi's advanced trading platform analyzes various factors such as supply and demand dynamics, trading volume, and market sentiment to calculate the fair value. Traders can use this information to make informed decisions about their futures trading strategies. It's important to note that the fair value may vary across different exchanges, as each exchange may have its own methodology for determining fair value.
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