The Bitcoin Future contract is a forward contract that allows users to buy or sell Bitcoin at a set price at a future date. The contract is traded on the Chicago Mercantile Exchange (CME) and is one of the few derivatives contracts available for trading Bitcoin. The contract is cash-settled and based on the CME CF Bitcoin Reference Rate (BRR), which represents the price of Bitcoin in U.
S. dollars.
The Bitcoin Future contract was launched in December 2017, and since then has seen strong interest from investors. The contract is popular with traders who want to hedge their exposure to Bitcoin, as well as those who want to speculate on the future price of Bitcoin.
The Bitcoin Future contract is denominated in U.S.
dollars and is settled in cash. The minimum tick size is $5 per bitcoin, and the contract expires on the last Friday of every month.
The CME CF Bitcoin Reference Rate (BRR) is used to settle the contract price. The BRR is a daily reference rate of the US dollar price of bitcoin compiled from four exchanges: Bitstamp, Coinbase, itBit, and Kraken.
NOTE: WARNING: Trading in Bitcoin futures is a highly speculative activity and involves a high level of risk. Before engaging in such a transaction, you should carefully consider your financial situation, risk tolerance and other relevant factors. You should not invest money which you cannot afford to lose. You should ensure that you understand how Bitcoin futures works and be aware of all the associated risks before trading. If in doubt, seek professional advice from an independent financial advisor.
The BRR was launched in November 2016 and is calculated by taking the volume-weighted average price of bitcoin across these four exchanges during a one-hour period. The BRR is published every day at 4:00 p.
m. London time, and the settlement price for the Bitcoin Future contract is based on this reference rate.
The BRR has proven to be a reliable and robust measure of the US dollar price of bitcoin, and has been used by numerous market participants to price products and services in US dollars.
The CME Group offers two types of contracts for trading bitcoin: the Futures Contract and the Options Contract. The Futures Contract allows traders to take a long or short position on bitcoin, betting on whether the price will go up or down in the future.
The Options Contract gives traders the ability to buy or sell options on bitcoin, giving them more flexibility in how they trade.
The Futures Contract is cash-settled and based on the CME CF Bitcoin Reference Rate (BRR), while the Options Contract is physically-settled and based on the settlement price of bitcoin futures traded on the Gemini exchange.
Bitcoin futures are traded on various exchanges around the world, including the Chicago Mercantile Exchange (CME), which offers two types of contracts: Futures and Options. Both types of contracts are cash-settled and based on different reference prices for bitcoin: Futures are based on the CME CF Bitcoin Reference Rate (BRR) while options are based on settlement prices for bitcoin futures traded on the Gemini exchange.
9 Related Question Answers Found
When it comes to Bitcoin futures, there is no one-size-fits-all answer. The price of a Bitcoin future will be determined by a number of factors, including the underlying price of Bitcoin, the length of the contract, and the volatility of the market. Bitcoin futures contracts are currently available on a number of exchanges, including the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE).
Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people using the name Satoshi Nakamoto in 2009.
Bitcoin is a cryptocurrency, a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user-to-user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
The current price of Bitcoin is $8,700. It has been on a steady decline since reaching its all-time high of $19,783 in December 2017. Despite this, Bitcoin remains the most well-known and valuable cryptocurrency in existence.
Bitcoin Gold is a fork of the Bitcoin blockchain that occurred on October 24, 2017. The new blockchain created a new cryptocurrency, Bitcoin Gold (BTG), that can be mined with GPUs. BTG is currently worth $174.62 USD.
Bitcoin Diamond is a cryptocurrency with a market capitalization of $1.4 billion. It is ranked #38 on CoinMarketCap.com. Bitcoin Diamond has a circulating supply of 156,065,625 BCD and a max supply of 210,000,000 BCD.
Bitcoin is a cryptocurrency and a payment system, first proposed by an anonymous person or group of people under the name Satoshi Nakamoto in 2008. Bitcoin is a decentralized system. There is no central authority or middleman.
Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
