Bitcoins are the first global decentralized digital currency, which is one of many “cryptocurrencies” or a “virtual currency.” Bitcoin futures offer quick access to exchange traded contracts based on the bitcoin cash index.
Bitcoins are the first global decentralized digital currency, which is one of many “cryptocurrencies” or a “virtual currency.” Cambridge University says 2.9-5.8 million people are actively using a cryptocurrency “wallet,” and it’s more than a fad. “Currently, the combined market value of all cryptocurrencies is nearly $40 billion,” says Dr. Garrick Hileman, Research Fellow at the Cambridge Centre for Alternative Finance (CCAF). “The advent of cryptocurrency has also sparked many new business platforms with sizable valuations of their own, along with new forms of peer-to-peer economic activity.”
Trading in Bitcoins Futures
In November 2017, Cannon Trading Futures Vice President Ilan Levy-Meyer wrote, “The hot market for today is definitely Bitcoin. While we don’t have a future contract YET to trade, it is close and the CME does have the “underlying asset” which will be the Bitcoin Index (More information will come out soon.).” The company included a Bitcoin Index Futures chart for traders to review.
On Your Mark, Get Set…Bitcoin Futures Exchange Soon Open for Business
Many investors are concerned with the additional risk of investing in Bitcoin cash futures, with good reason. The value of Bitcoins has risen and dropped like a roller coaster. The reasons seem to be:
Just like you, we’re excited but cautious about investing in Bitcoin futures. Your Cannon Trading broker will discuss the possibilities and the risks with you, always with a goal toward a financial portfolio that meets your needs for now and your future. We continue to offer some of the lowest commission rates in the industry. Call 310.859.9572, 800.454.9572, or contact us to learn more.
The Initial margin is the amount the exchange will be asking for to initiate the control of 1 contract representing either 1 bitcoin or 5 bitcoin; depending on the contract you chose to trade.
We will be offering the contract there will be a slightly delay in offering. We do expect the contract to be tested and available within the first few days of trading. We will keep you updated on the availability.
The CBOE has set initial margin at 44% of the current daily settlement price:
For example: bitcoin settlement Price (Dec. 7th 2017) = $16,129.00
Price Fluctuation = $1.00 per Bitcoin
Contract Value = $16,129.00
Initial Margin = $7,096.76 (this number changes based on prior day’s settlement)
As this is a new contract, with a highly volatile underlying contract we will initially be setting the following Margin Requirements:
Day Trade Margins 7:00am CT – 4:00pm CT – Client must have 100% of Exchange Initial Margin
Overnight Margins 5:00pm CT – 7:00am CT – Client must have 125% of Exchange Initial Margin to carry the position overnight. If they do not they will be required to offset the position.
Weekend Margins From Friday's 3:00pm CT – Client must have 200% of Exchange Initial Margin to carry the position overnight. If they do not they will be required to offset the position.
We will keep you updated on any changes or developments.
Bitcoin via our platform will be available. Whether it is available day one is dependent on our ability to complete testing with our data providers, but we do envision the contract at a minimum being released within the first few days of trading. We will keep you updated on the availability.
As of December 14, 2017 the estimate of initial margin that CME Clearing would require is 44%:
As of Dec. 7th BRTI Price = $15,964
Price Fluctuation = $5.00 per Bitcoin
Contract Value = $79,821
Initial margin = $35,120 (this number changes based on prior day’s settlement)
Day Trade Margins 7:00am CT – 4:00pm CT – 100% of Exchange Initial Margin Upon request, we may request 50% day trade margins.Overnight Margins 5:00pm CT – 7:00am CT – 150% of Exchange Initial Margin
As December 18th nears we will keep you updated to any changes or developments.
If you don't have an account with Cannon Trading Co, Inc. then below is a link to set up the account:
In Order to Trade these contracts, please complete the following online application and fund the account with the minimums listed above Here’s the link to the on-line account application (takes about 15-20 mins.)
Cannon Trading respects your privacy, all transactions are safe and secure with High-grade Encryption (AES-256, 256-bit keys). We do not sell your information to third parties.