To start trading futures at TD Ameritrade, you’ll need to open a standard account. The standard account can either be an individual or joint account. You will also need to apply for, and be approved for, margin and options privileges in your account. Choosing a trading platform. Bitcoin futures trading is available at TD Ameritrade. Quotes and trading capabilities for these futures products are available on our thinkorswim trading platforms. To get started, you first need to open a TD Ameritrade account and indicate that you plan to actively trade.3/5. Jul 08, · Platforms offering Bitcoin Futures Trading. TD Ameritrade; TC Ameritrade is one of the largest brokerage firms in the world which offers Bitcoin Futures Trading. This platform has oversight from the CFTC, SEC, and FINRA. It is also a designated self .
How to trade bitcoin futures td ameritradeFutures Trading | TD Ameritrade
Bitcoin futures allow traders the opportunity to make a trade decision based on where they think the price of bitcoin will be in the future.
If the price of bitcoin plummets between now and the contract expiration, the price of the contract will decrease and the holder can then buy the same contract at a lower price to close the position before the settlement date, helping to offset the price decline in their actual bitcoin holdings. Conversely, if the price of bitcoin goes up, the price of the bitcoin futures contract will increase, and the holder would buy the contract, or wait until settlement, for a loss at the higher price.
First and foremost, to trade bitcoin futures you need to have an eligible account approved for futures trading , which requires margin privileges and typically options approval. Even if you have traded futures before, these products have higher margin requirements than other futures and you should look into what your broker requires to ensure you can fulfill them. Another thing to consider is that futures accounts generally have minimum deposit requirements as well.
Data Source: Cboe. For illustrative purposes only. Since these are still very new products, they are not available to trade everywhere. If you are interested in them, you will have to check with your broker to see if they are offered. Right now, neither exchange is offering options on bitcoin futures. Click the links to get additional information about each of their respective products. Exchange Margin Requirements are subject to change without notice.
It is important to understand that bitcoin is an unregulated product and regulations are still a little murky, both in the U. As a result of lack of regulation in certain regions, multiple exchanges and trading platforms, as well as global spread, there is the potential for groups to manipulate the digital currency, although both Cboe and CME have systems in place to help minimize the potential for this to occur. Another thing to keep in mind is that bitcoin is prone to extreme volatility, and double-digit percentage swings within a day are not uncommon.
A limited number of investors have significant holdings and their movements can have an outsized impact on the markets. Additionally, these bitcoin futures contracts are new products with minimal trading history. There could be times with limited liquidity in the marketplace and, considering how volatile the underlying can be, trading could be halted for short periods of time making it harder to enter and exit a position.
While bitcoin and other cryptocurrencies have been surrounded by a lot of hype due to their rapid increase in price, they have become more mainstream this year. You should carefully consider whether trading in bitcoin futures is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances.
Still have questions? Looking to learn the basics of Bitcoin and cryptocurrencies? Get started with this article on The Ticker Tape. Not investment advice, or a recommendation of any security, strategy, or account type.
Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.
Be very cautious and monitor any investment that you make. Like all futures products, speculating in these markets should be considered a high-risk transaction. Futures and futures options trading is speculative, and is not suitable for all investors.
Trading privileges subject to review and approval. Futures trading doesn't have to be complicated. Our futures specialists are available day or night to answer your toughest questions at With our elite trading platform thinkorswim Desktop , and its mobile companion the thinkorswim Mobile App , you can trade futures where and how you like with seamless integration between your devices.
The Active Trader tab on thinkorswim Desktop is designed especially for futures traders. Interest Rates. Unless otherwise noted, all of the above futures products trade during the specified times beginning Sunday night for the Monday trade date and ending on Friday afternoon.
See Market Data Fees for details. Stock Index. Live Stock. TD Ameritrade Media Productions Company is not a financial adviser, registered investment advisor, or broker-dealer. Maximize efficiency with futures? A capital idea. Fun with futures: basics of futures contracts, futures trading. Advanced traders: are futures in your future?
Whether you have an existing TD Ameritrade Account or would like to open a new account, certain qualifications and permissions are required for trading futures. Before you can apply for futures trading, your account must be enabled for margin, Options Level 2 and Advanced Features.
Home Investment Products Futures. Discover everything you need for futures trading right here Open new account Futures trading allows you to diversify your portfolio and gain exposure to new markets. Five reasons to trade futures with TD Ameritrade 1.