The announcement has generated a lot of buzz on Wall Street, and sparked a big rally in the cryptocurrency. Futures, which allow two parties to exchange an asset at a specified price at an agreed upon date in the future, have been around since the late 19th century. In some cases, when a futures contract settles the buyer of the contract can receive their payment in the product itself a barrel of oil, say , or in cash.
The latter are referred to as cash settled futures. You can read a full explainer on bitcoin futures here. As futures get ready for trading, CME this week sent out a note setting out how the bitcoin futures will work. For you. World globe An icon of the world globe, indicating different international options.
Get the Insider App. Click here to learn more. A leading-edge research firm focused on digital transformation. Good Subscriber Account active since Shortcuts. No need to worry about offshore cryptocurrency exchanges. No need to worry about delivery when trading Bitcoin Futures since they are cash-settled. No need for a Cryptocurrency wallet that are prone to hacks.
Just log in or open a live account in minutes. See full contract specs below. Disclaimer: The liquidity on any single exchange can affect the price of Virtual Currency Futures adversely. Click Here to view the Pricing that applies to most retail traders and understand all the costs associated with trading Futures. Fees on Virtual Currency may be higher due to the inherent risk. Please ask for full disclosure before engaging in trading. Click Here to view the full list of trading platforms that you can trade Bitcoin Futures on.
Please note that you may need to contact us to enable your trading platform for bitcoin futures. Is it really safe to start trading Bitcoin futures just yet? A look into technology behind Bitcoin and its evolution. Want to Trade Bitcoin Futures but still have questions? Get in touch using the form below or feel free to call us directly at and one of our client representatives will assist you.
The time you place a trade for a virtual currency futures contract and the time you attempt to liquidate it will affect the value of your futures contract and the potential profit and losses related to it. Be very cautious and monitor any investments that you make. There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.
Please be aware, however, that just because futures on virtual currencies, including Bitcoin, are traded on regulated futures exchanges does not mean that the underlying virtual currency markets are regulated in any manner.
CME have launched trading in Bitcoin futures. The specifications for each Bitcoin futures contract, including margin requirements and price fluctuation limits, can be found on the CFE and CME websites. The regular risks associated with trading commodity futures contracts also apply to the trading of Bitcoin futures.
These risks can be viewed at the following link:. Customers choosing to trade Bitcoin futures should consider additional significant risks including, but not limited to: a Bitcoin futures contracts have not previously traded on a U. As such, each customer should conduct his or her own due diligence prior to make a decision to trade in these products.
See the link below from the National Futures Association for more information. See the link below for further information from the CFTC.
By contrast, cash flows for the underlying LME contract are only settled CME (Bitcoin Futures): Enter the underlying symbol BRR in order to bring up the. CME bitcoin futures volume multiplied by 5, as each contract is 5 bitcoin. Detects gaps in trading for CME's "Ether" cash-settled futures. With the cash-backed CME Bitcoin futures product, customers can trade Bitcoin's price action without owning the asset itself, McCourt explained, adding.