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How do you lock bitcoin to gold? Do you buy physical gold?

[ Originally posted by user Nader on 20 MAR 2015 02:21PM COT ]


How do you lock bitcoin to gold? do you buy physical?


thanks


Best Answer

[ Originally posted by Coinapult Agent Robinson on 21 MAR 2015 03:38PM COT ]


At this time, we do not buy physical gold. 

We maintain the purchasing power of our gold denominated obligations using futures markets. 


Answer

[ Originally posted by Coinapult Agent Robinson on 21 MAR 2015 03:38PM COT ]


At this time, we do not buy physical gold. 

We maintain the purchasing power of our gold denominated obligations using futures markets. 

[ Originally posted by user Nader on 22 MAR 2015 04:31AM COT ]


Thanks for your reply. 

My understanding is once you receive a lock request you will sell the bitcoin for USD and then use the funds to purchase a gold contract. Are you able hold this gold contract if the market spikes down 1000 points for example then recovers or will you be "stopped" out? 

Thanks 

Nader

[ Originally posted by Coinapult Agent Robinson on 23 MAR 2015 05:43PM COT ]


We are able to hold the gold position through such volatility because the contracts are not leveraged.

[ Originally posted by user Nader on 24 MAR 2015 01:33PM COT ]


That's great.


I read that the size of a gold contract is 100oz at CME web site. Does that mean you have 100 * Price of gold in cash in your futures account. For example, today's price of gold currently is 1193. So, if you're not leveraged you will have 100*1193 or USD 119,300 available per contract? is this correct?


Thanks.


Nader

[ Originally posted by Coinapult Agent Robinson on 25 MAR 2015 03:56PM COT ]


That’s a good question. We are able to buy mini contracts for 1 oz or 1/100 of the standard contract.

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