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Micro Bitcoin Futures

Posted on September 24, 2021February 14, 2022 by Ilan

Micro Bitcoin Futures

Cryptocurrency has taken off as an encrypted alternative to real spending money, giving people more options for doing business. Bitcoin is one of the leading cryptocurrencies on the market, especially after it boomed in 2017. Nowadays, many websites accept Bitcoin payments, which has helped the cryptocurrency market grow significantly. Micro Bitcoin futures have also made a significant impact on the futures trading industry.

Now, many brokers offer futures for Bitcoin and other types of cryptocurrency. It is easier than ever to trade shares of these types of currency, and traders of all experience levels can trade practically anytime and anywhere.

Keep in mind that before you start trading Bitcoin/ Micro Bitcoin and other crypto futures you will need to acknowledge additional risk disclosures on top of the standard futures disclosures.

One of the most convenient ways for traders to get the results from cryptocurrency is by trading micro futures. Recently, the CME Group announced new Micro Bitcoin futures, which have revolutionized futures trading. Now, for 1/10 the cost of the average Bitcoin share, a trader can purchase shares of this new type of future.

About Our Team

Cannon Trading has the tools traders need to begin trading cryptocurrency futures. We have various platforms that meet all needs, allowing traders to trade what they want when they want them.

Our experienced brokers are here to help traders of all levels through the process. We specialize in developing innovative platforms that help traders navigate the market.

Whether a trader is part of a professional trading organization or participating in day trading, our brokers can help. We work with clients from various backgrounds, providing everything from multilingual trading services to broker-assisted trading. If a trader is interested in our services, our customer support team of qualified brokers would be happy to help.

About Micro Bitcoin Futures

Micro Bitcoin Futures and Bitcoin Futures are both offered by CME to traders around the world. These contracts vary in size, depending on whether a client pursues a regular Bitcoin future or a Micro Bitcoin future.

Micro Bitcoin Futures allow traders to access Bitcoin Futures for a tenth of the cost of a regular Bitcoin future. Both types of contracts make it easy to get into the Bitcoin market, allowing clients to get the most out of their trading process.

Trading Micro Bitcoin Futures

The CME Group launched Micro Bitcoin Futures in May of 2021 and it has been a successful contract from the start. With Bitcoin rising in prominence worldwide, it is easy to see why this type of futures contract appears to be here to stay.

Bitcoin futures trading has been prominent since 2017 when the CME Group introduced it. Micro futures allow traders to speculate and hedge using 1/10th the size of a single coin of this iconic cryptocurrency. With Bitcoin still dominating the cryptocurrency industry, it is easy to see why many traders prefer the Micro futures over the traditional larger Bitcoin futures as the good faith deposit required is 1/10th of that of the standard Bitcoin contract.

While the new Micro Bitcoin Futures provide a value of 1/10 of a Bitcoin, these contracts are 1/50th the good faith deposit required of a traditional Bitcoin contract. This lower margin requirement allows traders to access more futures, giving them greater control of how much they can invest.

The versatility of the market, along with the lower capital involved, helps more traders access this type of future. It is for this reason that Micro Bitcoin Futures are popular with both active traders and cryptocurrency users.

Benefits of Micro Bitcoin Futures

There are many benefits involved in trading Micro Bitcoin Futures, which can help traders who have just started participating in the market.

Micro Bitcoin futures allow traders to take advantage of the many benefits of Bitcoin futures without investing as much. The CME Group saw the need for a minor Bitcoin futures contract, especially since the traditional contract was worth 5 Bitcoin.

More people could participate in cryptocurrency futures trading by creating this new, minor contract, which helped liquidity.

The institutional volume for Micro Bitcoin Futures has allowed the market to reach over a million contracts in just a short period. While this type of trading launched in the summer of 2021, it has become a popular choice, even seeming to outpace the traditional Bitcoin futures market.

Here are just a few of the benefits traders can expect when utilizing Micro Bitcoin Futures:

Smaller capital investment
Reasonable bid offer spreads
Lower entry price
Regulated financial products
More accessible to more traders
And more

The team here at Cannon Trading can help traders understand this type future, allowing them to get the most out of their opportunities. We understand that our traders have varying needs, which has led us to develop innovative solutions and platforms to achieve them.

Our team wants to help people get the most out of their Micro Bitcoin futures, which is why we have a dedicated group of brokers ready to assist our traders.

We also have platforms for various needs and trading opportunities, from mobile platforms to desktop applications. Our products were designed with traders in mind, giving people the functionality to access the market.

Impact of Micro Bitcoin Futures

While Micro Bitcoin Futures are relatively new to the market, they have made a significant impact on trading as a whole. This type of contract allows traders to explore the cryptocurrency futures market without spending as much capital as a traditional contract would require or coin in the Cash marketplace..

We understand that new traders may have a lot of questions regarding this type of cryptocurrency futures trading venue. There are risks involved in trading futures and even greater risks when trading Bitcoin and MICRO bitcoin futures. Our team is here to help field any questions a person might have regarding the trading process as a whole. Cannon Trading makes it easy to navigate the market, as we provide cutting-edge platforms that simplify the trading process.

Our brokers have been assisting traders since 1988, which has allowed Cannon Trading to become a leading name in the futures trading business. We opened our online trading service in 1998, which allowed more traders than ever to participate in the market. Over 20 years later, traders have continually recognized us as one of the leading brokerage services.

How Cannon Trading Can Help Micro Bitcoin Futures Traders 

At Cannon Trading, we have the tools traders need to make informed decisions before investing in the futures market. 

We provide access to cutting-edge software and programs that put our traders at the forefront of the industry.

Cannon Trading’s experienced brokers can help clients learn more about oil futures, offering insight into the overall market, as well. 

We work with traders from many different backgrounds, including:

Broker-assisted traders
Day traders 
Diversified traders
Institutions 
Professional traders
And more

Whether you’re a beginning trader or an experienced one, our brokers can help you navigate the market. We have direct experience with the market so that we can help our clients best navigate the market. 

We also provide them with the tools to make the most of markets and manage risk during volatile times.

Contact Cannon Trading

Our professional commodities brokers will work with you to understand your specific trading style and requirements and provide you the essential advice and information you need to thrive in this highly lucrative market.

As an example, Cannon Trading’s Broker-assisted Trading solution provides traders new to the field with the essential advice and tools they need to accelerate their understanding of some of the mechanisms that affect prices in any futures contract market.

Contact us today to learn more about commodities trading and information on futures options and other listed commodity contracts.

Disclaimer

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve a substantial risk of loss and are not suitable for all investors. 

Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you regarding your circumstances, knowledge, and financial resources.

You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Futures Insight – “The Market Keeps Hitting My Stop Orders!” & Support and Resistance Levels 9.23.2021

Posted on September 22, 2021 by Ilan

Dear Traders,

Get Real Time updates and more on our private FB group!

https://business.facebook.com/groups/1105191589938254/

“The Market Keeps Hitting My Stop Orders!” by Mark O’Brien, Senior Broker:

This is a shared annoyance among futures traders, particularly for those trades where their initial stop orders are hit. Certainly, this condition can be approached by discussing any trade’s risk – in terms of actual dollars, or number of points or cents. But for purposes of this blog post, let’s approach the condition by discussing strategy. One strategy in particular that can be implemented in lieu of simply placing a stop order is regularly termed a back spread. It involves taking a position – long or short – in a futures contract, then entering a long, opposing option position. A simple example would be to take a long position in the E-mini S&P 500 futures contract and purchasing a put option. The selection of which option to purchase will determine the risk/reward parameters of the overall trade. Generally, the closer to the money, or the deeper in the money the purchased option’s strike price is, the less tolerant the back spread will be to adverse price movement, because as the futures contract incurs losses, so too will the purchased option incur gains. The delta of the option at the time of purchase will provide the initial amount of protection against an adverse price move, expressed as a percentage of a single futures contract (equal to 100%) and which will increase with adverse price movement. Conversely, the protection will decrease with a favorable price move. An important component to this position, of course, is the expiration date of the option. It will not only determine how long the insurance will be in place, but it will also determine in part the overall strategy’s ability to tolerate. An at-the-money option whose expiration date is within days will more effectively provide protection against an adverse price move than one whose expiration date is weeks away, but for a more limited amount of time. Everything considered, if you’re looking for an alternate strategy substitute to simply placing a stop order, a back spread could be considered.

Good Trading

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.

Futures Trading Levels

9-23-2021

Economic Reports, source:

www.BetterTrader.co

BetterTrader Report 9.23.2021

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 here in 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 judgement in trading as well as options on futures.

Using Trailing Stops to Manage your Risk & Support and Resistance Levels 9.21.2021

Posted on September 21, 2021September 21, 2021 by Ilan

Dear Traders,

Get Real Time updates and more on our private FB group!

https://business.facebook.com/groups/1105191589938254/

FOMC tomorrow. Do your homework, look at price action during the last few FOMCs.

Also we will have a LIVE WEBINAR with live price action post FOMC and see in real time what type of information price action and order flow provide. Register here.

A Trailing stop Tweak by John Thorpe, Senior Broker:

When traders decide to deploy trailing stops, they may decide to take a look at avg truer range to determine volatility of the market so they have a better gauge of how much to risk on each trade and how likely, if they are correct about the direction, will they be to successfully set the trailing distance. Tweak your stops to reduce the risk to your Net Liquidating Value.

Whatever indicator or set of indicators you like to use to determine how many points the market must travel before your stop automatically modifies and moves to your new “Protection Level”, I think all traders agree when this happens, we have a winning trade on the books., Typically the worst we will get filled when the market does change direction, with a little slippage is a trade that finishes in the black!

What happens when the stop doesn’t trail, a hard stop is elected the market takes the position out, with a little slippage, below our breakeven? The trade ends in the red.

Whether you trail or use a hard stop, stops are part of risk management and in my opinion, essential to long range trading success: use stops or trailing stops. If the stop never trails, the trade will end with a predetermined loss,(less slippage and fees) , Some people like to set stops after they enter the market, (some say they do but rarely will). I do.

The importance of using stops can not be understated. What I do once I have determined how many ticks I will use for my trailer, is to place the Trailing stop LESS THAN my hard coded distance E.g. hard coded trailing distance is 20, I will place the stop at 12 or 14. That way, if the market modifies the stop at least once, the trade will do better than break even by 6 or 8 points less fees rather than getting stopped at breakeven less fees. If the stop modifies twice then I have the potential for a 34 to 36 point gain on this trade, less fees. If the position gets stopped I will not take a 20 point loss, rather a 14 to 16 point loss.

If we always place the trailing stop at the same distance when we initiate our entry trade, we will always do worse than breakeven if we get stopped out. If you loosen your trailer and tighten your entry, you might just turn the account from red to black.