A forward contract is a private agreement between two parties giving the buyer an obligation to purchase an asset and the seller an obligation to sell an asset at a set price at a future point in time.
Jacky is the office manager of Hong Kong office. He is expecting to receive 5 Bitcoins from his boss in Canada next week for the local office salary. He cannot risk for selling Bitcoins at lower then HK$40,000.00 each.
As the Bitcoin market is very unstable, he decided to contact us and enter into a forward contract of selling 5 Bitcoins at total sum of HK$200,000.00.
Bitcoins price drops under HK$30,000.00 over the weekend before Jacky can receive the Bitcoins from his boss.
Luckily, Jacky entered a contract with us and was able to sell his 5 of his bitcoin for HK$200,000.00. He is happy he can settle the salary payment.
Forward contract is suitable for customers who wish to fix a exchange rate for future settlement. For example, an business expecting bitcoin payment may lock in the exchange rate for a future receivable.
Forward contract is also suitable for speculating the market. If you expects price drop in Bitcoin in the future period, you may enter a forward contract with us where we agrees to buy BTC at current rate.
Any customer in BTC Shop can enter into a forward contract with us. Please click here to fill in the sign up form.
The maximum contract tenor is 60 days from the date of contract booking.
You may book forward contracts with currency pairs of Hong Kong Dollar against Bitcoin only.
The minimum amount per contract is HKD20,000.00 or its equivalent.
The business hours are from 9am to 7pm from Monday to Friday.
No, you cannot cancel a forward contract once you have accepted. You may choose to forfeit the contract and surrender the security deposit.
Fees varies based on the settlement period or deposit. It is typically between 0.5% to 4% of the contract sum. Click here to see the fee schedule reference.
If you are entering in to a contract which We buy Bitcoin from you, security deposit needs to be paid in Bitcoin. On the other hand, if We sell you bitcoin, your security deposit shall be paid in Hong Kong Dollar.
You may settle the contract at any trading period in between the date of contract and the last trading day of the contract. You execute the contract by settling all remaining payment to us.
No. All the contract is non-transferable.
If you are trading personally, we requires your passport or Hong Kong ID copy, proof of address, the quantity of your trades and the contract period you looking for.
If you are trading as a company, we requires your Certificate of Incorporation, Business registry, person in charge ID, person in charge address copy and the contract details.
Click here for the order form
All the contract fees are based on the contract sum.
This fee schedule is for reference only. We can create flexible contract based on your needs. Contact our experts now.
Jacky enters a forward contract which he is SELLING 5 Bitcoins to us for a total HK$200,000 the contract tenor is 3 days . He has paid 30%, 1.5 Bitcoins to us a security deposit.
In this example Jacky’s contract fee is :
$200,000 x 1% = $2,000 or
5 Bitcoins x 1% = 0.5 Bitcoins
At any period between the contract booking day and the last trading day of the contract, in this case is 3 days from the booking day. Jacky can send the remaining 3.5 Bitcoins and receive HK$200,000.
Jenny enters a forward contract which she is BUYING 20 Bitcoins from us at a total HK$800,000 the contract tenor is 30 days . She has paid 40%, HK$320,000 to us a security deposit.
In this example Jenny’s contract fee is :
$800,000 x 2.6% = $20,800
At any period between the contract booking day and the last trading day of the contract, in this case is 30 days from the booking day. Jenny can pays the remaining HK$480,000 and receive 20 Bitcoins.