Bitcoin Futures Trading On CBOE Vs CME- Unkrypted
by Ricky Makan Co-Founder at Unkrypted
Bitcoin Futures, the Most Recent buzz in the crypto-currency markets, is gaining attention from each portion of the world. More and more people are trying to understand Bitcoin futures so that they can understand how it can influence the location value of Bitcoin.
Chicago Mercantile Exchange (CME), world’s biggest derivative exchanges were the first to declare the record of Bitcoin future on its platform. The launch was scheduled for 18thDecember 2017, 6 PM CST
After CME, Chicago Board Options Exchange (CBOE) also announced the launching of Bitcoin futures and in fact; it had been faster than CME when it comes to the listing. CBOE recorded Bitcoin Futures on 10 December on its platform.
CBOE, obtained a massive traffic on it is Site when it listed Bitcoin Futures. The trading obtained so heat up that it attained the circuit and it needs to be stopped twice in four hours of listing. CBOE’s site also crashed because of huge traffic.
Apart from CME and CBOE, NASDAQ is going to be the next one to list Bitcoin Futures in the first half of 2018.
Various platforms have their own terms and conditions for trading of Bitcoin Futures.
Difference between CBOE & CME Bitcoin Futures Contract Explained
Unregulated Bitcoin futures trading have already been there in existence for a while. But they have failed to attract institutional investors, who have mostly stayed away in the crypto-currency. However, the entrance of CME and CBOE is expected to change the circumstance.
CBOE & CME Bitcoin futures contract
Original Spot Price
The CME contracts are on the BRR index that collectively Bitcoin trading action across four Bitcoin trades – Kraken, BitStamp, GDAX, and itBit between 3 pm and 4 pm GMT. On the other hand, CBOE will cost contracts using one auction at 4 pm to the last settlement date. It’ll utilize Bitcoin prices in the Gemini market, owned by the Winklevoss twins, to compute contract worth. Bitcoin costs, up to now, has varied between different exchanges because of differences in trading volume and liquidity.
If we see the difference between Contract units then CME contract consist of five bitcoins whereas the CBOE contract includes only one Bitcoin. This implies that CME and CBOE contracts will probably be well worth the amount of Bitcoin on the BRR index or Gemini in the time of trading.
Price Limits and Margin Rates
CME’s path breakers for Bitcoin futures is going to be triggered by 7%, 13%, and 20% price movement in either way by the daily settlement price of the earlier business day. Trading will be stopped if the cost for Bitcoin stocks moves greater than 20%. In CBOE’s, the trading halts are triggered 10 percent and 20 percent of on a daily basis price limits. CBOE takes a 40% margin fee for Bitcoin futures transactions whereas CME has implemented a 35 percent gross profit pace.
The tick value (minimum price movement) in CME is $5 per Bitcoin. This usually means that the price movement for one contract will proceed in increments of $5 and figures to a total of 25 each contract. In CBOE, the minimum sign up for a non-spread deal is 10 points or $10. A spread tick has a tick size of $0.01.
Created on Dec 19th 2017 22:07. Viewed 458 times.