Guide to trading CME Crypto futures Contracts.
Bitcoin futures (BTC)
Micro Bitcoin futures (MBTC)
Ethereum futures (ETH)
What are CME’s Bitcoin Futures?
As explained in this Investopedia article Bitcoin futures enables investors to gain direct exposure to Bitcoin without having to hold the underlying cryptocurrency, and especially having to deal with exchange platforms, crypto wallet, passwords etc..
Like a futures contract for a commodity or stock index, Bitcoin futures permit us to hypothesize on the future price of Bitcoin. The Chicago Mercantile Exchange (CME) offers monthly contracts for cash money negotiation: this means an investor takes cash money as opposed to ‘physical’ delivery of Bitcoin.
Currently with Bitcoin futures being used by several of one of the most prominent industries, traders and also speculators are all bound to profit. These central markets will certainly help with profession based upon a trader’s overview for Bitcoin rates, gain direct exposure to Bitcoin rates, or hedge existing Bitcoin placements. Overall, the availability of Bitcoin has actually helped with rate exploration as well as cost openness, enabled risk-management by means of a managed Bitcoin product, and given a further press to Bitcoin as an approved asset class.
The problem with the BTC futures contracts.
Back in 2017 CME didn’t imagine the value and popularity that would soon hit the cryptocurrency world, hence created the BTC futures to be equal to 5 times the value of one Bitcoin; as of writing this BTC is valued at over 58K$, hence the necessity for Micro BTC.
Bitcoin, code BTC
Contract size: 5 Bitcoin.
Contract value: 25 €, per point 5 €
What are Micro Bitcoin Futures?
At 1/10 the dimension of one Bitcoin (and 1/50 of BTC Future contract), Micro Bitcoin futures (MBT) supply an efficient, economical new way to make improvements and improve your trading techniques, I truly believe that the Funders are looking into this right now and might be able to introduce these products in some of their funding programs for retail traders like us.
Micro Bitcoin, code MBTC
Contract size: 0.10 Bitcoin.
Contract value: 0.50 $, per point 0.10 €.
What are Micro Ethereum Futures?
In 2018 CME created also the futures contracts based on Ethereum, setting of 1 ETH future contract at value of 50 Ethereum.
There are no indication at the moment that CME might be considering creating a Micro ETH but we shall keep an eye on it.
Ethereum, code ETH
Contract size: 50 Ether.
Contract value: 12.50 $, per point 0.05 $.
I’m confident and I look forward to see the Funders introducing Micro Bitcoin in their evaluation programs!
At the moment the only way to obtain capital to trade cryptocurrencies is by trading CFD contracts: beware these are not legal in some countries, like USA.