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What is CBOE Bitcoin Futures? 5 Things You Need To Know

Bitcoin has been a hit in Malaysia and the big surprise winner for the world. One thing that’s prompted the latest rise for bitcoin is the rollout of bitcoin futures contracts. CBOE Bitcoin Futures is set to launch on Sunday. It plans to launch trading in Cboe bitcoin futures at 5:00 p.m. Central Time on December 10 under the ticker symbol “XBT”.

cboe bitcoin Futures
CBOE Bitcoin Futures is set to launch on Sunday.

The main reasons behind this introduction are to provide transparency Bitcoin trading, efficient price discovery, deep liquidity and centralized clearing.

What is CBOE Bitcoin Futures

The first U.S. Bitcoin Futures with the aim to have a centralized marketplace for participants to trade based on their view of (1) bitcoin prices, (2) gain exposure to bitcoin prices or (3) hedge their existing bitcoin positions.

5 Things To Know About CBOE Bitcoin Futures

Before buying Bitcoin, let’s take a quick look at some of the facts about it.

1. CBOE Bitcoin Futures Launch’s Date

It begins trading at 7 A.M. Monday (11 Dec 2017).

2. It Hedges Your Bitcoin Risk

XBT futures provides a way for you to buy and sell bitcoin futures in a highly regulated marketplace nearly 24 hours a day, five days per week.

3. 30% Margin Requirement For Bitcoin Futures

CBOE intends to set an initial margin requirement of 30% for bitcoin futures, but that number will be subject to change depending on contract price volatility once the futures contracts start trading.

4. The Bitcoin Price Is Determined By

The Gemini Exchange runs a daily auction for bitcoin at 4 p.m. and publishes its pricing data for public consumption, making it an easy reference point for Cboe bitcoin futures market participants.

5. 1 Contract Equal 1 Bitcoin

Owning one XBT contract is equal to one Bitcoin.

Source: Finance Yahoo

How To Trade At CBOE Bitcoin Futures

Anyway, cited from The Motley Fool, we have to register a futures account with the brokers in order to buy or sell bitcoins future contracts. To date, the retail brokers don’t have uniform rules about allowing customers to trade bitcoin futures.

In addition, brokers will make their own individual decisions about whether to allow customers to trade bitcoin futures, so you should check with your broker upfront to make sure that you’ll be able to trade.

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