New Bitcoin futures listing cycle starting December 16
This FAQ is provided for informational purposes and does not constitute the rendering of legal or other professional advice.
Individuals and entities should in all cases seek advice from their independent legal and professional advisors regarding the matters discussed below. London time. As with any other derivatives product, the accounting treatment of positions in Bitcoin futures, and the general local regulatory treatment of trading in Bitcoin derivatives, may differ by country and between competent jurisdictions. Market participants are solely responsible for complying with all applicable US and local requirements.
Market participants, particularly those with no experience in trading Bitcoin derivatives, should seek professional counsel as necessary and appropriate to their circumstances. You do not need a digital wallet, because Bitcoin futures are financially-settled and therefore do not involve the exchange of bitcoin. In order to trade futures, you must open an account with a registered futures broker who will maintain your account and guarantee your trades.
In the futures business, brokerage firms are known as either a futures commission merchant FCM , or an introducing broker IB. Learn More. Yes, block transactions are allowed for Bitcoin futures, subject to reporting requirements per Rule The minimum block threshold is 5 contracts. Learn more here. Central Time rounded to the nearest tradable tick. Yes, Bitcoin futures are subject to price limits on a dynamic basis. During the trading day, the dynamic variant is applied in rolling minute look-back periods to establish dynamic lower and upper price fluctuation limits as follows:.
London time on the expiration day of the futures contract. Yes, based on growing interest in cryptocurrencies and strong demand for more tools to manage bitcoin exposure, CME Group will launch options on Bitcoin futures in Q1 Find out more at cmegroup. Dollar price of one bitcoin as of p. It is representative of the bitcoin trading activity on Constituent Exchanges and is geared towards resilience and replicability.
Learn more about the BRR. The BRR is calculated based on the relevant bitcoin transactions on all Constituent Exchanges between p. The price and size of each relevant transaction is recorded and added to a list which is portioned into 12 equally-weighted time intervals of 5 minutes each. For each partition, a volume-weighted median trade price is calculated from the trade prices and sizes of the relevant transactions across all the Constituent Exchanges. The BRR is then determined by taking an equally-weighted average of the volume-weighted medians of all partitions.
View BRR Methodology. More information can be found here. View latest Fee Schedule. Margin offsets with other CME products will not be offered initially. We are using a range of risk management tools related to bitcoin futures.
CME Clearing retains the right to impose exposure limits, additional capital requirements, and other targeted risk management tools if we see exposures that we determine might become a concern in any product or market.
Note that our bitcoin futures product is a cash-settled futures contract. As such, margins will be set in line with the volatility and liquidity profile of the product. Further, we also have the ability for clearing members to impose trading or exposure limits on their clients. Other tools may include increased capital or margin requirements in cases where exposures increase beyond reasonable levels. Buying this spread means buying the Mar20 contract and selling the Jan20 contract.
View contract month codes. The price of the spread trade is the price of the deferred expiration less the price of the nearby expiration. After the spread trade is done, the price of the two contracts will be determined using the following convention:. The nearby contract is priced at its daily settlement price on the previous day. CME is developing a hard fork policy for capturing cash market exposures in response to viable forks.
The policy may involve cash adjustments to position holders or listing related futures that are also issued to position holders. Learn more about connecting to CME Globex. Delayed quotes will be available on cmegroup. You can also access quotes through major quote vendors. EST OR a. Crypto Facilities Ltd.
The foregoing limitation of liability shall apply whether a claim arises in contract, tort, negligence, strict liability, contribution or otherwise and whether the claim is brought directly or as a third party claim.
Furthermore, there is no guarantee the continuity of the composition of the CME CF Cryptocurrency Indices, nor the continuity of their calculation, nor the continuity of their dissemination.
Neither futures trading nor swaps trading are suitable for all investors, and each involves the risk of loss. All other trademarks are the property of their respective owners. The information within this communication has been compiled by CME Group for general purposes only. CME Group assumes no responsibility for any errors or omissions. Additionally, all examples in this communication are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience.
Current rules should be consulted in all cases concerning contract specifications. As the world's leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. CME Group on Twitter. CME Group on Facebook. CME Group is the world's leading and most diverse derivatives marketplace.
Markets Home. Active trader. Hear from active traders about their experience adding CME Group futures and options on futures to their portfolio.
Find a broker. Get quick access to tools and premium content, or customize a portfolio and set alerts to follow the market. Market Data Home. Real-time market data. E-quotes application. Access real-time data, charts, analytics and news from anywhere at anytime. Explore historical market data straight from the source to help refine your trading strategies.
Clearing Home. Technology Home. Uncleared margin rules. Understand how CME Group can help you navigate new initial margin regulatory and reporting requirements. Calculate margin. Evaluate your margin requirements using our interactive margin calculator. Education Home. New to futures? Learn why traders use futures, how to trade futures and what steps you should take to get started.
Create a CMEGroup. What is the relationship between Bitcoin futures and the underlying spot market? On which exchange is Bitcoin futures listed? What regulation applies to the trading of Bitcoin futures? What accounting and other regulatory treatment is afforded to Bitcoin futures in my local jurisdiction?
Which platforms support Bitcoin futures trading? Do I need a digital wallet to trade Bitcoin futures? Product Details. What are the contract specifications? Trading in expiring futures terminates at p. London time on Last Day of Trading. Position Limits Spot Position Limits are set at 2, contracts. A position accountability level of 5, contracts will be applied to positions in single months outside the spot month and in all months combined.
Are bitcoin futures block eligible? How is the Bitcoin futures daily settlement price determined? Are Bitcoin futures subject to price limits? How is Bitcoin futures final settlement price determined? Through which market data channel are these products available?
How is the BRR calculated? What are the fees for Bitcoin futures?
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The number of contracts in the first hour stood at just 5 total. Very odd. By that time, trading in the monthly contract totaled 66 bitcoin. Some online commentators believe the furures start is a natural progression for regulated futures products. Su ZhuCEO and CIO of Singapore-based hedge fund Three Arrows Capital, said that most regulated futures contracts see low adoption on the first day, simply because not all futures brokers are ready to clear .
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Last updated: 3 October We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners. Bitcoin futures trading lets you go long on Bitcoin if you want to bet on a price rise, or go short on Bitcoin if you want to bet on a price drop.
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Last edited by rleplae; December 8th, at PM. The following 3 users say Thank You to rleplae for this post: learningmattzS trader.
PM with any questions about optimusfutures The following 6 users say Thank You to mattz for this post: bobwestDavidHPlancelottraderlearningrleplaeS trader. The following user says Thank You to suko for this post: jackbravo.
What most people do not know about Tulipmania was that it was about futures contracts not spot. And the futures market did not collapse until options were introduced. In the midst of regulatory uncertainty and confusion. So I say that the rubber hits the road here once the options come. The following user says Thank You to suko for this post: fuutures.
The following user says Thank You to meow for this post: rleplae. Elite Member. The strategy is, then, to tinker as much as possible and try to collect as many Black Swan opportunities as bitccoin can". Bitcoin futures trading start date of Page. Become an Elite Member. All times are GMT The time now is AM. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products.
Past performance is not indicative of future results. User Name or Email. New User Signup free. December 20th, AM. December 8th, PM by rleplae. Page 1 of 7. Thread Tools. December 8th,PM. Thread Starter. The following 4 users say Thank You to rleplae for this post:. GFIs1learningxplorer.
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The following user says Thank You to suko for this post:. December 9th,AM. The following user says Thank You to meow for this post:. December 9th,PM. Similar Threads. Bitcoin Futures by the CME. October 9th, PM. October 31st, AM. Bitcoin Futures June 7th, PM. March 13th, PM. June 10th, PM.
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