The second major derivative based on bitcoin <a href="
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The CME Group, one of the USA's premier exchanges of options and futures contracts ,started out bitcoin futures and options for trading at 6 p.m. EST Sunday. The initial price for bitcoin futuress was $20,650, and the digital currency was trading at $20,135 at 6:08 p.m. EST.
The digital currency has exploded in popularity and price tag this year whilst drawing doubts relating to its volatility.
The CME bitcoin options contracts, like the bitcoin futures that now trade on the Chicago Board Options Exchange, do not require real bitcoin. They will follow an index of bitcoin price. Each contract will be for 5 bitcoin.
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Dominic Marella, the head of business development at futures broker Icon Alternatives, which has been trading Bitcoin futures, said trading has been orderly but tepid.
Here's how they work and what you need to know before they begin trading. Options are a natural next step that will provide some much-needed risk management capabilities. Here's everything you need to know about how these futures will work, and which brokers will actually let you trade bitcoin futures in your brokerage account.
Instead of buying Bitcoin directly you are taking a short or buy position.
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