If the price of BCH rockets upward, then futures shorts get margin called and the longs do not get paid. So futures are not the same as owning BCH in cold storage. This may explain the 2-3% discount we see on futures. The upside is actually capped.

It may be a good strategy to long spot and withdraw to cold storage, and short futures on leverage. In the event a large price movement occurs, just let yourself get margin called on futures, its basically a free stop loss without needing to find a counterparty to close.

Such event would normally trigger cascading margin calls and could bankrupt exchanges if they dont force close all the longs.

So before you trade derivatives be aware of the risks and understand what you are trading.

submitted by /u/big--if-true
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source https://www.reddit.com/r/btc/comments/xsbd6g/if_the_price_of_bch_rockets_upward_then_futures/