Bitcoin Futures Contract Specifications (BTC, Regulated by CME Exchange)

Bitcoin Futures Contract Specs (BTC, Regulated by CME Exchange)

 

What is the Bitcoin Futures Contact?

The new Bitcoin futures contract will be cash-settled, based on the CME CF Bitcoin Reference Rate (BRR) which serves as a once-a-day reference rate of the U.S. dollar price of bitcoin.

What Is the Symbol for the Bitcoin Futures Contract?

The symbol for the Bitcoin Futures is BTC. However, once in a while, you may find a quote vendor that may use a different symbol.

What Months does the Bitcoin Futures Contract Trade?

The BTC contract trades in these months:

January Symbol F

February Symbol G

March Symbol H

June Symbol Z

Nearest 2 months in the March Quarterly cycle (Mar, Jun, Sep, Dec) plus the nearest 2 “serial” months not in the March Quarterly cycle.

What is the Contract Unit of the Bitcoin Futures? 

5 bitcoins, as defined by the CME CF Bitcoin Reference Rate (BRR)

What is the Tick Size of the Bitcoin Futures Contract?

Outright: $5.00 per bitcoin = $25.00 per contract

Calendar Spread and Basis Trade at Index Close (BTIC): $1.00 per bitcoin = $5.00 per contract

What are the Trading Hours of the Bitcoin Futures Contract?

CME Globex and CME ClearPort: 5:00 p.m. – 4:00 p.m. CT Sunday – Friday

BTIC: 5:00 p.m. – 10:00 a.m. or 11:00 a.m. CT (4:00 p.m. London Time) Sunday – Friday

What Contract Should I Trade?

You Should trade the contract that is most liquid. This means that you should trade the month closest to the current period.   Two weeks prior expiration of the contract you should start looking at the next month and see where is the liquidity. The liquidity is measured in terms of Open Interest and daily volume traded.

How does Margin Work?

Futures trading gives you the ability to use leverage by allowing you to control large dollar amounts of a commodity with a small amount of capital. This amount of capital that is used out of your account when trading a futures contract is known as margin.

What are the margin requirements for Bitcoin futures?

CME Maintenance Margin for the BTC Futures is 43%, where the Initial Margin for Hedger is 100% of the maintenance margin and the initial Margin for Speculator is 110% of that number. Our FCM’s may require additional margins beyond the exchange minimum requirements. Click Here for current Exchange margins.

Day trading margins, also known as Intraday margins, are determined by our clearing firms and are typically provided as a percentage of the initial margin or a dollar amount. Click Here to view the day trading margin requirements for the BTC futures contract available from each of our clearing firms. This is the amount of money you need today trade the BTC contract i.e. getting in and out of the market before the trading session ends.

Initial margin (also known as overnight margin) is the amount required to open and hold a BTC position past a session’s close i.e. holding overnight positions. Overnight trading margins are determined by the exchange and are not negotiable.  Once you meet the initial/overnight margin requirement, you are required to maintain the maintenance margin level until the position is closed. If the balance in the account falls below the maintenance margin level, you need to replenish the account balance to meet the initial margin requirement.

How does the Bitcoin Futures Contract Settle?

The BTC is a cash-settled product.  There is no delivery on this contract.

Which Platforms Bitcoin Futures?

Please check these Futures Trading Platforms. They all trade the Bitcoin Futures Contract.

Which Brokers Trade Bitcoin Futures?

Open an Account with Optimus Futures to start trading Bitcoin Futures today.

Please call (800) 771-6748 or email us at general@optimusfutures.com to learn more.

Disclaimer: Virtual currencies including Bitcoin experience significant price volatility, and fluctuations in the underlying virtual currency’s value between the time you place a trade for a virtual currency futures contract and the time you attempt to liquidate it will affect the value of your futures contract and the potential profit and losses related to it. Be very cautious and monitor any investment that you make. There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.

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