Here’s What You Should Know About Cboe’s Bitcoin Futures Launch

The largest U.S. options provider, the Chicago Board Options Exchange (Cboe), is set to launch its bitcoin-based futures products today at 6 pm EDT. Currently, investors and speculators are interested in what will happen when the derivatives products launch, because at the moment there are no open standards for this type of cryptocurrency-based investment vehicle.

Big Time Options Markets Are About to Shoot the Dice With Bitcoin

Cboe is planning to launch its bitcoin derivatives product. It’ll be sold under the ticker XBT. Many people are wondering how this will impact current spot markets and the bitcoin economy as a whole. So far the price has spiked quite a bit, and many speculators believe the favorable price is due to the upcoming futures markets. No one can really predict right now how these derivatives markets will affect spot markets, but we can tell you what to expect this week.

What You Should Know About Cboe’s Futures

Futures will be available for trading starting at 6 pm EDT on Sunday, December 10. Investors will be able to trade from 9:30 am to 4:15 pm EDT, and trading is also available during extended hours. There are no bitcoins involved with contracts as all of the trading is cash-settled in USD at settlement times. However, contract sizes are equal to ‘one bitcoin’ based on the USD price of BTC on the Gemini exchange. Futures investors can purchase a minimum of $10 per contract which are tethered to specific time periods.

“The contract multiplier will be 1 so if a contract is trading at parity with bitcoin its worth will be based on current pricing — The minimum tick for a directional, non-spread trade is 10 points or $10, and a spread trade will have a much smaller tick of 0.01 bitcoin or $0.01,” revealed Cboe’s CFA Russell Rhoads this past November…

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