Dec 17, · CME Group announced it will be offering Ethereum futures. When CME launched Bitcoin futures three years ago, the price of Bitcoin reached an all-time high. The price of Ether is up 10% in the last 24 hours. Overshadowed by Bitcoin’s run past $20, (and then past $21,) today, was an announcement by CME Group that Ethereum futures will be listed on CME starting in . Bitcoin futures trading is available at TD Ameritrade. Quotes and trading capabilities for these futures products are available on our thinkorswim trading platforms. Nov 20, · Since Bitcoin is the cryptocurrency that has been around for the most years and is considered the most reliable digital coin as well, Interactive Brokers has started to offer futures trading on it. Today, traders and investors can use Interactive Brokers trading platform to buy Bitcoin futures .
Brokers offering bitcoin futuresBitcoin Futures
Some of the best features of trading with Interactive Brokers include low costs of trading and high returns. Their online brokerage services are available for individuals at home looking for an extra stream of income and institutional trading as well. Once on the Interactive Brokers trading platform, you have access to trading stocks, indices, commodities, futures contracts, CFDs, options trading, etc.
You can trade options, buy future contracts or do CFD trading from the same platform. It is an award winning online brokerage service that has been around for 40 years now. The overall trades taking place using its platform are said to be around , on any given day today. Cryptocurrencies are still new in the market. Oftentimes, there is an aura around them that keeps the traders, new ones and experts, a bit reluctant to trade them. However, after more than five years, cryptocurrencies have reached a point where you can say that there are here to stay.
It only makes sense for the big brokers on the internet to offer some way for traders and investors to invest in cryptocurrency market as well. Since Bitcoin is the cryptocurrency that has been around for the most years and is considered the most reliable digital coin as well, Interactive Brokers has started to offer futures trading on it.
Today, traders and investors can use Interactive Brokers trading platform to buy Bitcoin futures contracts. On both exchanges, the futures will be having their own symbol as well.
This particular milestone has already been achieved by the company in the December of There are a few restrictions on these trades at the moment due to the volatile nature of the cryptocurrency market.
This basic information will be helpful for any new traders who wish to join the Interactive Brokers platform. Futures Trading. Futures trading is something that people can often confuse with options trading because there are definite similarities in them. The first thing you have to know about futures contracts is that when you agree to buy or sell them, you are under an obligation.
The basic concept of futures trading is that you decide a future trade on which you hold yourself obligated to sell or buy a particular asset. At the time of deciding the deadline, you also agree to a specified price at which you will purchase or sell the asset. When the specified date arrives, you have to sell or buy the asset at the price you agreed. So, here is a plain example to make the concept clearer to the readers. You go into a futures buying agreement i.
Now that you have entered the agreement, you would hope for the price of the asset to rise in future. If you have understood futures trading carefully, you would know that futures trading comes with quite a few risks for Interactive Brokers.
First, Interactive Brokers should be given credit for bringing a new trading instrument for its investors and traders despite the associated risks. However, the company is doing its best to keep things as balanced as possible. When this option was introduced by the company, you could not go short on your sales. What it means was that you could not sell the asset on the exchange to buy it later.
The reason for this limitation was the volatility of cryptocurrencies. However, buying the short position is now possible for traders and investors. One must keep in mind that on this particular exchange, each contract will only be 1BTC. In order for the traders to enter the bitcoin futures trades, they will first have to enable it in their accounts. There is a trading permission page on which the trader can enable or disable the option to sell or buy BTC futures.
Individuals who have accounts with Interactive Brokers and futures trading is already enabled on their accounts will not need to activate this option. The approval for futures trading can be given upon request and requires nearly a day to complete. Another important thing is for the residents in Japan. If you are an Interactive Brokers trader from Japan, you will not be able to do bitcoin futures trading.
Furthermore, you are not allowed to conduct this type of trade using an IRA. You also have to pay attention to the margin requirements before you go ahead and start trading BTC futures.
When it comes to outright margin, it will be different for the two exchanges because of the difference in their contract sizes. Going short is still going to be challenging and only the accounts with a lot of tolerance can go short on their BTC futures trades. It might need further explanation to satisfy the traders on the issue of margins on short positions.
Yes, the margin requirements might seem steep at first, but as soon as you realize the risk of the broker, you will find them justifiable. If you sell a contract to buy it back at a later date, you profit from the rising price of that asset. If the price of the asset rises significantly, you buy it back at a much lower and agreed upon price at the time of entering the contract.
Now, you have to look at the volatility of Bitcoin to understand the risk of the broker. Take a look at the market and you will not find any asset anywhere that can beat that volatility. These are the figures for one year. What makes matters worse is that it can go up and down hugely within the matter of hours. Despite the fact that Interactive Brokers is allowing you to go short or long on your BTC futures, it has mentioned clearly on its website that only selective traders will be accepted for this program.
Not every trader is going to be able to conduct these trades. Despite the initial limitations, the response from the traders was huge, which pushed the broker to remove those limitations later on.
Reasons to Trade with Interactive Brokers. There are more reasons for you to trade with Interactive Brokers than there are to trade with any other online broker. The platform brings all your trade activities in one place and makes account management a breeze. In addition to that, it is available for you in every form so you can pick the format that suits you the most.
It is available in the downloadable for desktops and mobile devices. Furthermore it is available in web-based form so you can access from anywhere at anytime without requiring any downloads. A lot of brokers talk about your safety as a trader while trading with them, but their promises are only strings of words. They have nothing to back up their claims of being safe.
On the other hand, Interactive Brokers is the safest platform for you to do reliable trading. It is regulated by the financial regulating authorities in a bunch of countries. Tradable Assets. Interactive brokers gives you the autonomy that no other broker can offer online today. E-quotes application. Access real-time data, charts, analytics and news from anywhere at anytime. Explore historical market data straight from the source to help refine your trading strategies. Services Home.
Uncleared margin rules. Understand how CME Group can help you navigate new initial margin regulatory and reporting requirements.
Calculate margin. Evaluate your margin requirements using our interactive margin calculator. Education Home. Now live: ESG solutions. Manage the risk associated with renewable energies, environmental change and sustainable investments. Create a CMEGroup. Get quick access to premium educational content, including expert-led webinars, a real-time trading simulator, and more.
Bitcoin futures and options on futures. Now trading: Bitcoin options on futures. Key benefits. Easily trade on your market view. Efficient price discovery in transparent futures markets. Subscribe for updates on Bitcoin futures and options. Are you new to futures markets? You're in the right place. 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.
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