Pi Network - auto mobile mining: Join now and be one of the pioneers!!

Blog

The planet’s largest futures exchange has just announced details of forthcoming options on its Bitcoin futures. The new cryptocurrency derivative from the CME Group is still pending regulatory approval and, as such, remains without an exact launch date.

The Chicago Mercantile Exchange (CME) Group detailed its soon-to-be-launched options in a blog post earlier today. The derivatives exchange claims that the launch is a response to growing customer demand and “interest in cryptocurrencies.”

The post states that the options will be valued based on the price of Bitcoin provided by the CME CF Bitcoin Reference Rate. This index is calculated daily from prices taken from numerous leading digital currency exchanges, including Bitstamp, Coinbase, Kraken, and others.

cme bitcoin

cme bitcoin

The CME Group says that the options will allow traders to manage exposure to Bitcoin and allow for alternate trading strategies. It adds that it will also allow Bitcoin traders to make savings on margins using margin offsets.

The new derivative will settle into the exchange’s existing BTC futures contracts. Each of these contracts, launched in Dec 2017, equals five bitcoins and is settled in cash.

The forthcoming options contracts will have a tick size (minimum price movement) of $5 per Bitcoin. The price of each contract will, therefore, move in increments of $25.

The CME Group’s options contracts are currently pending regulatory approval. The exchange says that it will launch as soon as it receives the go-ahead. It anticipates this to be in early 2020.

Bitcoin BTC

Bitcoin BTC

The detailing of the group’s latest Bitcoin product follows Bakkt’s announcement earlier this month. In a blog post, reported by BeInCrypto, the platform’s CEO Kelly Loeffler announced that the Intercontinental Exchange affiliated platform would launch options on its own physically-settled Bitcoin futures on Dec 9. She too said the move was a response to customer demand.

Both CME futures, options, and Bakkt’s options allow traders to bet on Bitcoin price swings without ever needing to actually own any Bitcoin. Some commentators have argued that the launch of such derivatives products represents the maturing of Bitcoin into a more legitimate asset class. However, for some Bitcoin purists, such speculation without traders even necessarily understanding the potentially ground-breaking implications of the cryptocurrency and blockchain technology distracts from the bigger picture and possible decentralized future of finance.


Images courtesy of Shutterstock.


Did you know you can trade sign-up to trade Bitcoin and many leading altcoins with a multiplier of up to 100x on a safe and secure exchange with the lowest fees — with only an email address? Well, now you do! Click here to get started on StormGain!

No Comments

Be the first to start a conversation

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Categories

Pi Network - auto mobile mining

Become one of the pioneers!!

Random Posts

DOWNLOAD MY EBOOK FOR FREE

"Your Headline Here How I Made $4947 In 1 Month"

Lorem pretium lorem orci elit nunc imperdiet nec vel sit pretium hendrerit amet nec orci gravida gravida sapien purus massa

Quick Bio About Me

mypicmeLorem proin accumsan accumsan volutpat ut nullam odio eleifend libero quisque ipsum gravida eleifend dolor nunc sagittis venenatis orci eleifend lorem quisque venenatis non sagittis sagittis ipsum nunc.

lacus eleifend pretium eros sed consectetur venenatis praesent sapien consectetur dolor nullam laoreet orci mauris ornare congue lacinia auctor lorem quis quis lacus eleifend pretium eros sed consectetur venenatis praesent sapien consectetur dolor nullam laoreet orci mauris

Resources

  • Resource 1

    Lorem sed praesent quisque auctor libero eros lorem nec praesent accumsan ornare venenatis nullam.

  • Resource 2

    Lorem sed praesent quisque auctor libero eros lorem nec praesent accumsan ornare venenatis nullam.

Random Blog Posts

© 2020 Cryptoracle.info - Crypto News