The second major financial instrument based on bitcoin is starting to trade on the CME.
The CHICAGO MERCANTILE EXCHANGE Group, one of the USA's greatest exchanges of options and futures ,started bitcoin futures for trading at 6 p.m. EST Sunday. The initial price for bitcoin futures contractss was $20,650, and the digital currency was trading at $20,135 at 6:08 p.m. EST.
The virtual currency has increased in popularity and gain this year whilst drawing fears about its unpredictability.
The CME bitcoin futures and options, like the bitcoin futures that now trade on the Chicago Board Options Exchange, do not require factual bitcoin. They will measure an index of bitcoin price. Each contract will be for 5 bitcoin.
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Here's how they work and what you need to know before they begin trading.
The peak bitcoin price coincided with the day bitcoin futures started trading on the Chicago Mercantile Exchange (CME). EST for CME Bitcoin Futures. Funds must be fully cleared in your account before they can be used to trade any futures contracts, including bitcoin futures.
CFDs are derivatives products that allow you to trade on live market price movements without actually owning the underlying instrument on what your contract is reliant.
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