Bitcoin Futures Contract Specs (XBT, Regulated by CBOE Exchange)

Bitcoin Futures Contract Specs (XBT, Regulated by CBOE Exchange)

 

There are two Bitcoin Futures contracts that will be available to the public. One is the CME Bitcoin Futures, Symbol, BTC, and the other is the CBOE Bitcoin Futures (Symbol XBT). These are two separate exchanges. Below is the description of the CBOE Bitcoin Futures contract. 

If you need help deciding which contract is better for you, please email us at general@optimusfutures.com or call toll-free at (800) 771 6748 / Local (561) 367-8686.

What is the XBT Bitcoin Futures Contact?

Cboe Bitcoin (USD) futures are cash-settled futures contracts that are based on the Gemini auction price for bitcoin in U.S. dollars.

What Is the Symbol for the Bitcoin Futures Contract?

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

What Months does the XBT Bitcoin Futures Contract Trade?

The Exchange may list for trading up to four near-term expiration weeks (“weekly” contracts), three near-term serial months (“serial” contracts), and three months on the March quarterly cycle (“quarterly” contracts).

What is the Contract Unit of the Bitcoin Futures? 

10.00 points USD/XBT (equal to $10.00 per contract).

What is the Tick Size of the Bitcoin Futures Contract?

 The individual legs and net prices of spreads in XBT futures may be in increments of 0.01 points USD/XBT (equal to $0.01 per contract)

What are the Trading Hours of the Bitcoin Futures Contract?

Type of Trading Hours Monday Tuesday – Friday
Extended 5:00 p.m. (Sunday) to 8:30 a.m. 3:30 p.m. (previous day) to 8:30 a.m.
Regular 8:30 a.m. to 3:15 p.m. 8:30 a.m. to 3:15 p.m.

The trading hours for an expiring XBT futures contract end at 2:45 p.m. on its Final Settlement Date.

The end of day submission cut-off time for all Orders, quotes, cancellations and Order modifications for XBT futures (other than for the expiring XBT future on its Final Settlement Date) is 3:14:59 p.m. Any Orders, quotes, cancellations or Order modifications submitted after the end of day submission cut-off time will be automatically rejected by the Exchange.

Market Orders for XBT futures contracts will not be accepted. Any Market Orders for XBT futures contracts received by the Exchange will be automatically rejected. Stop Limit Orders are permitted during regular and extended trading hours for the XBT futures contract.

All times referenced are Chicago time.

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 XBT Bitcoin futures?

Cboe has set the initial margin at 44% of the current daily settlement price. 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 XBT 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 an XBT 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 XBT is a cash-settled product.  There is no delivery on this contract.

Price Limits and Trading Halts:

XBT futures contracts are not subject to price limits.

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.

Comments are closed