Did I read this right?

Discussion in 'Trading' started by taojaxx, Jun 4, 2021.

  1. taojaxx

    taojaxx

    Was dabbling into going long 1 (all of them 1) BTC Futures at Interactive brokers and the margin requirement is $115,294? That's over 300% for a long position? Where I can only lose 100%
    Beats me. No wonder volume is low...
    What am I missing here?
     
  2. Robert Morse

    Robert Morse Sponsor

    BTC, last trade is $36,770. The value of 5 coins is 36770*5= $183,850. Each BTC is for 5 Bitcoins.
     
    murray t turtle and taojaxx like this.
  3. Then why would anyone trade futures instead of just trade BTC...where you can short it too.
     
  4. RedDuke

    RedDuke

    Good question and that is why volume is almost non existant. Same for ether futures.
     
    murray t turtle likes this.
  5. Try the micro BTC contract for lower margin requirement. Higher volume than bitcoin futures, but low volume generally speaking.

    upload_2021-6-4_8-29-1.png
     
    taojaxx likes this.
  6. SunTrader

    SunTrader

    Think something is wrong there. TradeStation is $73,227 for big (5 coin) contract and $1463 for the micro (which is 1/10th size of 1 coin)
     
  7. MrMuppet

    MrMuppet

    If you really want to get your feet wet in crypto, go buy some coin for 50$ with a credit card and trade on crypto native exchanges. CME and Bakkt are a dumpster fire
     
  8. maxinger

    maxinger

    even the micro BTC futures volume is not fantastic.

    look at micro BTC futures bid - offer spread.
    it can be 10 to 30 ticks wide.

    other more liquid futures bid offer spread is around
    1 to 2 ticks wide.

    perhaps time for CME to make the micro BTC tick size coarser.
    if the tick size is made coarser by 10 times,
    then micro BTC futures bid offer spread will improve
    drastically to 1 to 3 ticks wide.
     
  9. RedDuke

    RedDuke

    it is a matter of trust. For example, I would not put our client money on crypto native exchange. We are algo shop and volatility is great on crypto, but CME volume is anemic.

    $50-few K for fun is no big deal of
    Course :D but why even bother???
     
  10. taojaxx

    taojaxx

    Gotcha! I really was missing something lol
    Will try the micro one.
     
    #10     Jun 4, 2021