This past week the Chicago Board Option Exchange (COBE) introduced its bitcoin-based futures market and found a fair level of fear for the first time. This is now the largest option exchange in the world, the Chicago Mercantile Exchange (CME Group) has launched its bitcoin derivatives products. What can you expect from the CME Group's opening bid quote futures?
"One of the oldest and largest predicted markets, Chicago Mercantile Exchange enters the Bitcoin Arena"
This week, COBE's XBT futures launch caused a lot of stir and good on the first day of volume trading, and Interest in the contract of end of January because more than 1,500 were sold, although this has decreased in the following months because only 70 for March and 150 for March. It is very early, but the major derivatives players see the lack of liquidity. All this can change because the CME Group has so far launched its betokening futures products; it is safe to say that the CME option is a big whale in the ocean of markets and has a very broad customer base. This should provide greater liquidity to the launch of CME while making long and shorts easier for institutional traders.
Valid condition using leasing;
What is the hope of launching the huge CME Bitcoin futures of these options? Is futures market different from legitimate gambling, where its traders can also bet on future results of commodity, stock, currency and bitcoin? These futures are popular because they enable the option of availing the benefits (leverage means you are getting credit based on deposit) and usually only 10 percent of the majority of futures contracts are required. Futures investors will need to meet the margin requirement of 43 percent. It is the five bitcoin defined on the basis of the price of a contract unit CME CF Bitcoin Reference Rate (BRR).
These reasons invest in investments in retail investment futures, because at an example cost of $ 19K per BTC one person will have to invest $ 95,000, which will have to earn profit from the price rise or dropouts for five bitcoin. This basically the magic of the borrowing power, traders only have to pay $ 40,850 to make some benefits. This means that as the price increases the profits decrease and duplicate 5 bitcoin have been tightened at a very affordable rate, it is contrary to COBE futures, which is based entirely on the Gemini Index, the price reference rate of the CME Group Has gathered from four. This BRR rate comes from Bitcoin Exchange Kraken GDX, Bitstamp, and ltbit, which corresponds to the firm's Bitcoin Real-Time Index (BRTI).
Limited brokerage service options will mean limited liquidity;
This is like COBE's bitcoin futures contracts for the derivatives of the CME group; it will require investors to use the brokerage service. It currently does not have many services that offer futures for both companies, which can be due to liquidity issues. This Monday will offer the contract of TD Ameritrade Cboe, the largest online brokerage service, but will not provide CME products at the moment. This interactive broker, which was one of the COEE's products, will allow CME futures too. These CME futures will be able to be bought in contract for the nearest two months with two serial months near the March quarter cycle (March, June, September, and December).
This has prompted many Bitcoin supporters apart from CME, and some speculators believe that the price of the spot market reflects optimism. This week, COB launched its futures product last week, the price of this bitcoin was low and it started climbing at the start of the derivatives. Three days before the COE launch of Bitcoin, the price decreased by $ 13,400 in global markets, after futures launch reached $ 15,400. This CME launch was exactly the opposite of the spot price of bitcoin.
source - https://news.bitcoin.com/options-giant-cme-launches-bitcoin-futures-heres-what-to-expect/