December 8th, 2017 - Issue #902
In This Issue
1. Bitcoin Futures Are Here
2. Hot Market Report: Gold Futures Sitting on Major Support
3. Economic Calendar
1. Bitcoin Futures Are Here
Bitcoin futures are set to start trading this Sunday night Dec. 10th on the CBOE exchange. Below you will see a quick summary of key points regarding the TWO contracts we will be offering to clients. One via the CBOE and one via the CME. Both will be offered through our E-Futures platform and other platforms.
How to open a Bitcoin futures trading account:
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.
This is the 1 bitcoin sized contract update:
The CBOE will launch the Bitcoin Futures contract December 10, 2017.
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: Yesterday’s 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 – 100% of Exchange Initial Margin
Overnight Margins 5:00pm CT – 7:00am CT – 125% of Exchange Initial Margin
We will keep you updated on any changes or developments.
The 5 bitcoin Futures Contract update:
The CME released on Friday their official announcement that the exchange will launch the Bitcoin Futures contract December 18, 2017
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 1, 2017 the estimate of initial margin that CME Clearing would require is 35%:
As of this morning’s BRTI Price = $15,964
Price Fluctuation = $5.00 per Bitcoin
Contract Value = $79,821
Initial margin = $27,937 (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 @ $41,906
As December 18th nears we will keep you updated to any changes or developments.
If you already have an account with us, please contact your broker directly to make sure your platform offers access to bitocin futures and to discuss risks, margins and any other questions.
If you don't have an account with Cannon Trading Co, Inc. then below is a link to set up the account:
The New Account Application
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.)
2. Hot Market Report: Gold Futures are Sitting on Major Support
By Ilan Levy-Mayer, VPClick on image below to enlarge
Gold futures have not been so hot to say the least...It seems that gold is now facing another competitor, at least in the short term called bitcoin...As of late I have noticed an inverse relationship between the price of bitcoin (going up) and the price of gold (going down). It does not help that stock prices are still going strong into the end of the year which is seasonally good time for stocks.... That being said, we have seen markets top out or bottom out very quickly at times. While I don't predict this for gold right away, I do see a major area of support between 1229 and 1250 and on the same time I see both US stocks and bitcoin prices a bit exaggerated.... For now, I feel that gold is mostly influenced by other markets, mostly: US Stocks, bitcoin prices and US $ price. Stay tuned!
3. Economic Calendar
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
|---|---|---|
| 12/08 Fri |
7:30 AM CST - Ave Workweek & Hourly Earnings(Nov)
7:30 AM CST - Nonfarm Payrolls(Nov) 7:30 AM CST - Unemployment Rate(Nov) 9:00 AM CST - Mich Sentiment-Prelim(Dec) 9:00 AM CST - Wholesale Inventories(Oct) |
LT: Jan Sugar-16(ICE)
Dec Canadian Dollar Options(CME) Dec Currencies Options(CME) Dec Mx Peso Options(CME) Dec US Dollar Options(ICE) Jan Coffee Options(ICE) |
| 12/11 Mon |
9:00 AM CST - JOLTS-Job Openings(Oct)
|
FN: Jan Sugar-16(ICE)
|
| 12/12 Tue |
6:00 AM CST - NFIB Small Business Optimism(Nov)
7:30 AM CST - Core PPI & PPI(Nov) 11:00 AM CST - WASDE Report & Crop Production 3:30 PM CST - API Energy Stocks |
|
| 12/13 Wed |
6:00 AM CST - MBA Mortgage Applications Index
7:30 AM CST - Core CPI & CPI(Nov) 9:30 AM CST - EIA Petroleum Status Report 1:00 PM CST - FOMC Rate Decision(Dec) 2:00 PM CST - Dairy Products Sales |
LT: Dec Cocoa(ICE)
|
| 12/14 Thu |
7:30 AM CST - USDA Weekly Export Sales
7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - Import(ex-oil) & Export(ex-ag) Sales(Nov) 7:30 AM CST - Retail Sales(Nov) 7:30 AM CST - Retail Sales Ex-Auto(Nov) 9:00 AM CST - Business Inventories(Oct) 9:30 AM CST - EIA Natural Gas Report 3:30 PM CST - Money Supply |
LT: Dec Wheat(CBT)
Dec Corn(CBT) Dec Oats(CBT) Dec Soymeal,Soyoil(CBT) Dec S&P 500(CME) Dec Lean Hogs(CME) Dec Lean Hogs Options(CME) Dec S&P 500 Options(CME) Jan Crude Lt Options(CME) |
| 12/15 Fri |
7:30 AM CST - Empire Manufacturing(Dec)
8:15 AM CST - Capacity Util & Industrial Prod(Nov) 11:00 AM CST - NOPA Crush 3:00 PM CST - Net Long-Term TIC Flows(Dec) |
LT: Dec E-Mini Dow(CME)
Dec E-Mini S&P 500(CME) Dec E-Mini NASDAQ(CME) Dec Russell(CME) Dec E-Mini Dow Options(CME) Dec E-Mini S&P 500 Options(CME) Dec E-Mini NASDAQ Options(CME) Dec Russell Options(CME) Jan Canola Options(CBT) Jan Cotton Options(NYM) Jan Orange Juice Options(ICE) Jan Sugar-11 Options(ICE) |
| 12/18 Mon |
|
LT: Dec Currencies(CME)
Dec Eurodollar(CME) Dec Coffee(ICE) Dec Mx Peso(CME) Dec US Dollar Index(ICE) Dec Eurodollar Options(CME) |
| 12/19 Tue |
7:30 AM CST - Building Permits & Housing Starts(Nov)
7:30 AM CST - Current Account Balance(Q3) 2:00 PM CST - Milk Production 3:30 PM CST - API Energy Stocks |
FN: Dec US Dollar Index(ICE)
LT: Dec 10 Year Notes(CBT) Dec Bonds(CBT) Dec Canadian Dollar(CME) Jan Crude Lt(NYM) |
| 12/20 Wed |
6:00 AM CST - MBA Mortgage Applications Index
9:00 AM CST - Existing Home Sales(Nov) 9:30 AM CST - EIA Petroleum Status Report 2:00 PM CST - Dairy Products Sales |
LT: Jan Platinum(NYM)
Jan Palladium(NYM) |
| 12/21 Thu |
7:30 AM CST - USDA Weekly Export Sales
7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - GDP-Third Estimate(Q3) 7:30 AM CST - GDP-Third Deflator-Third Estimate(Q3) 7:30 AM CST - Philadelphia Fed(Dec) 8:00 AM CST - FHFA Housing Price Index(Oct) 9:30 AM CST - EIA Natural Gas Report 3:30 PM CST - Money Supply |
FN: Jan Crude Lt(NYM)
|
| FN=First Notice, OE=Option Expiration, LT=Last Trade | ||
* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.
** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.
*** This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!
