The largest options exchange in the United States Chicago Board Options Exchange (CBOE) plans to launch a product based on bitcoin.
It will be sold under the Ticker XBT. Many people are wondering how this will affect current markets and the bitcoin economy as a whole. While the price jumped a little, and many believe that this is due to the upcoming auction. While no one can predict how the derivatives markets affect spot markets.
Futures are available for trading starting at 6 p.m. Eastern standard time on Sunday, December 10 (1 hour night of December 11 in Kiev). Investors can trade from 9:30 to 16:15 Eastern standard time, trade will also be available for an extended time. Contracts not associated with bitcoin, all trades are bound to cash in US dollars at the time of the calculations. However, the size of the contracts is equal to “one bitcoin”, based on the price of BTC on the stock exchange Gemini. Futures investors may purchase a minimum of $ 10 per contract, which are tied to specific time periods.
“Contract multiplier will be equal to 1, so if a contract is traded at parity with bitcoin, its value will be based on the current price. The minimum tick for directional and Unallocated trade is 10 points or $ 10 and spread trading will have a much smaller tick at 0.01 bitcoin, or 0.01 of a dollar.
Bitcoin markets don’t like any of the stock or commodity markets and can shock investors with traditional markets.
Currently, there are no restrictions on the price, but while shopping sessions can be time-outs. This means that in extremely volatile moments markets CBOE bitcoins can be stopped. According to the rules of the CBOE, people cannot own or control more than 5,000 contracts net long or net short in the XBT. In addition, investors may not hold more than 1000 contracts, or net short, with existing XBT contracts, which expire.
Trade only through brokers
With individuals interested in investing in futures products CBOE will apply the main retail tariff of $ 1 per contract, but for the whole December, the firm refused a Commission from the fee. People and organizations will have to contact your brokerage firm to purchase XBT contracts. However, at the moment, many financial institutions are not quite ready to take on the task of selling the futures. Institutional customers can purchase the XBT from the more well-known brokerage firms such as Goldman Sachs and JP Morgan. But these companies will only offer bitcoin futures for a specific group of customers at the moment.
How will the futures price for bitcoin?
As we mentioned above, nobody knows what the impact of these futures will have on the bitcoin markets. Some suggest that this will have a positive impact and many believe that the impact will be negative.