CME Group Announces Launch of Bitcoin Futures

Discussion in 'Crypto Assets' started by SumZero, Oct 31, 2017.

  1. Maverick74

    Maverick74

    There is no way to short the digital coin itself. That's in a way part of the structure of the product. Being able to short anything is really about lending and debt and as of now, I don't think there is a way to lend your BTC to someone else. And you can't sell something you don't own if you can't borrow it. There are some weird BTC derivatives out there that one can trade but who knows how closely they follow BTC. For example, BITMEX.

    https://www.bitmex.com/app/trade/XBTUSD
     
    #121     Nov 12, 2017
  2. ajacobson

    ajacobson

    @Maverick74 - Thanks. It's going to cumbersome to trade any derivative - as you know. Has the CFTC approved either listing yet?
     
    #122     Nov 12, 2017
  3. Color me confused but I have no idea what you just asked?
     
    #123     Nov 12, 2017
  4. maxinger

    maxinger

    Great !!! I am ready to trade Bitcoin futures.

    Opportunity to earn tons of money from Bitcoin futures
    should be very high since the Bitcoin price volality has been super high.
     
    #124     Nov 12, 2017
  5. just21

    just21

    Bitcoin futures start the second week of December. Source Duffy on cnbc.
     
    #125     Nov 13, 2017
  6. Maverick74

    Maverick74

    Yes and expected overnight margin at 20%.
     
    #126     Nov 13, 2017
  7. Cuddles

    Cuddles

    There is, at least in bitfinex...
     
    #127     Nov 13, 2017
  8. Jankovic

    Jankovic

    In perspective and based on price volatility it seems that the tick value is too big
    I don't understand much the CME decision
     
    #128     Nov 15, 2017
  9. Overnight

    Overnight

    Actually, the tick size seems right since it is $5 per tick x 5 BTC per contract, and each tick is a $5 move in the underlying. (So $25 per contract per each $5 move in BTC)

    So if BTC moves $1000, it's 200 ticks. On one contract that's $5K change in contract value. Reasonable considering how BTC has been fluctuating. There will definitely be some wild days over there at the CME, but woe to those who position themselves too large for their risk. Like the VX at $50 per tick. I can't see VX data so do not know how crazy it moves, but on weeks like this I imagine it has moved a good bit.
     
    #129     Nov 15, 2017
  10. Jankovic

    Jankovic

    What if the price value skyrocketing above 20k in a couple of months, with this kind of volatility?
    With the current value it's quite normal to see a move of 30$ in 1 second. This means 6 ticks (150$) with one contract!
    If the value of the contract goes to 20k or above, you can imagine how this could be shocking...
    500 $ in just one second....
    How many traders could be able to trade this instrument?
    Why not to set a tick price value of 5$ instead of 25$?
    As I said I don't understand the CME choice
     
    #130     Nov 16, 2017