Futures are extremely capital efficient, meaning that less money is required to open positions than if you were spot trading (1x) or margin trading (x). This means if you have 10 Bitcoin and are scared of price decline, you have to trust % of your money to spot exchange to sell, or 20% of your money on margin exchange. Jul 08, · Where to trade Bitcoin Futures? As Bitcoin is a cryptocurrency, it’s an asset as well as a currency. So, Bitcoin Futures trading can be done on various places which include: Cryptocurrency Trading Platforms: Here you can buy cryptocurrency futures by trading Bitcoin against other cryptocurrencies or fiat currencies. Jan 30, · Like a futures contract for a commodity or stock index, Bitcoin futures allow investors to speculate on the future price of Bitcoin. The Chicago Mercantile Exchange .
Where trade bitcoin futuresBitcoin Futures
Learn where to trade Bitcoin Futures, how it works and how you can take advantage of it. Bitcoin futures enable traders to get exposure to digital assets like Bitcoin without having to physically or digitally in this instance hold the underlying asset.
Bitcoin Futures operate like a standard futures contract for a stock, commodity, bond or index and allow Bitcoin futures traders to speculate on the future price of Bitcoin.
In essence, Bitcoin Futures contracts are simply an agreement to buy or sell Bitcoin at a date in the future for a fixed price. Futures contracts are typically used by Bitcoin traders as a way to hedge their other investments.
Below our recommended Bitcoin Futures exchanges, we cover: 1. Advantages of Bitcoin Futures 2. Growth of Bitcoin Futures Trading 3. Are Bitcoin Futures Safe? Liquidation and collateral with Bitcoin Futures 5. Fees for Bitcoin Futures Trading. Review and compare the best Bitcoin Futures and Crypto Futures platforms to trade with up to x leverage. Binance is by far the global leader in both Bitcoin futures trading and crypto futures trading.
You can get started with a Binance Futures account in minutes from anywhere around the world and gain access to the best Bitcoin and crypto futures trading platform that any exchange has to offer.
Read our full Binance Futures Review for an extended look at their platform. They offer perpetual and futures contracts with up to x leverage. ByBit offer an easy to use platform with a straight forward sign up process and a great mobile trading app.
Kraken was initially founded as a Bitcoin spot exchange in mid by well known crypto advocate Jesse Powell. Since then, it has grown to become one of the best Bitcoin exchanges in the world. All of the funds on users accounts are held in separated cold-storage wallets which is backed by crypto security company Elliptic. You can get access to great liquidity, a variety of markets and low fees in a matter of 40 seconds. Phemex was founded in by experienced and well known Wall Street traders and investors.
They offer spot trading as well as Bitcoin futures and other crypto futures with up to x leverage. OKEx is leading Bitcoin and cryptocurrency exchange that offers hundreds of token and futures trading pairs to enable traders to get access to a variety of tools to optimise their cryptocurrency portfolio or trading strategies.
BitForex are a well renown exchange the offer Bitcoin spot trading as well as Bitcoin futures trading and other cryptocurrency futures contracts. Notably, BitForex's platform offer insurance coverage over assets on the platform which is a big point of difference when compared to other exchanges.
They also offer over trading pairs and support over countries. Deribit was primarily built for institutional and sophisticated investors, so it has a relatively high barrier to entry. They offer x leverage on their crypto futures platform, however only have Bitcoin and Ethereum pairs. Deribit has the largest open interest out of all exchanges for its crypto trading options. CoinFlex are one of the first physically settled Bitcoin and crypto futures trading platforms in the space. Nonetheless, as two prominent platforms that are directly involved in shaping the Bitcoin market, it is important to understand what Bakkt and CME are and what they offer.
This is in contrast to most other Bitcoin futures exchanges, which settle Bitcoin futures in cash. Bakkt only allows trading during certain hours, these are p. EPT to p. EPT, Sunday to Friday. According to the Bakkt FAQ , the platform is only accessible to trading participants with a type of registered futures broker known as a futures commission merchant FCM who is a clearing member of ICUS.
CME is well-known as the second regulated platform to launch regulated Bitcoin futures, back in December CME plans to introduce options for its Bitcoin futures in the first quarter of , adding additional flexibility in terms of managing risk. Like Bakkt, CME only offers futures trading during certain hours, these are p.
Regular traders are also unable to directly trade on CME, instead, traders will need to open an account with a futures commission merchant who will be able to manage their portfolio. As a derivative financial instrument, Bitcoin futures enable investors and traders to execute much more advanced, and potentially more effective investment strategies than simple spot trading. Learning how to trade Bitcoin futures is a relatively simple process, but truly mastering them will take practice.
They also enable several potentially profitable investment opportunities that are simply not possible with other Bitcoin derivatives, making them an ideal element in any well-rounded investment portfolio. Considered somewhat of an advanced investing strategy, hedging is the process of protecting an investment against a decline in value by creating another investment that will profit in a declining market.
For example, if an investor holds BTC and wants to protect themselves against losses during a bear market, they could short BTC with Bitcoin futures , such that any losses on their spot position will be neutralized by profits made on the futures.
Since many Bitcoin futures exchanges offer up to x leverage , the investor would be able to essentially eliminate risk using only 1 BTC in collateral. This strategy can be employed by anybody looking to minimize their exposure to price risk, protecting their long positions against any unexpected downturns. This can include Bitcoin miners, businesses that accept Bitcoin payments, long-term holders and. Bitcoin is widely considered to be one of the best speculative assets since the potential for upside profits is high, while its volatility makes shorting and day-trading potentially hugely profitable for experienced traders.
Likewise, Bitcoin futures allow even more people to benefit from the high risk, but high reward Bitcoin markets. Giving traders an easy way to go short or long on the market, and multiply their exposure to the market using leverage—something not possible with simple spot trading. In addition, rather than continually tracking the market every day, Bitcoin futures allow investors to speculate on the price of Bitcoin over longer time-scales, making them suitable for traders with little time on their hands.
Bitcoin arbitrage is the process of buying or selling Bitcoin on two different markets at the same time to take advantage of price discrepancies between these two markets. Buy buying on one platform where the price is lower, and selling on another platform where the price is higher, it is possible to lock the price difference as profit with next to no risk.
Since Bitcoin futures allow traders to short the market, these add another way to perform Bitcoin arbitrage. For instance, if a spot exchange is trading Bitcoin at below its fair value, while a Bitcoin futures exchange offers a future above fair value, the arbitrageur can buy bitcoin on the spot exchange, and short Bitcoin on the futures exchange to lock in the price. Similarly, it is also possible to perform arbitrage across two Bitcoin futures platforms if a number of conditions are met, however, these opportunities are far less frequent.
Although Bitcoin futures can allow traders to generate an impressive profit, there are some caveats and risks that need to be considered first.
Fortunately, most of these risks can be managed with proper due diligence and adequate caution. Despite being one of the easier types of Bitcoin derivatives to grasp, Bitcoin futures are still a relatively complicated financial instrument that is best traded by brokers and highly experienced traders.
Like most investments, it is quite possible to lose money when trading Bitcoin futures. Learn more about what futures are, how they trade and how you can get started trading. Why Trade Futures. Latest trading activity. Contract specifications. Bitcoin futures Bitcoin options Bitcoin futures View full contract specifications. Central Time Sunday — Friday. CT with a minute maintenance window Monday - Thursday from p. Bitcoin options View full contract specifications.
Options Style European style. Exercisable only on final settlement day Pending regulatory review and certification View Rulebook Details. Vendor trading codes. CME Direct users: download the Bitcoin options grid. Right click on the buttons below Save the files as an. Learn about Bitcoin.
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