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Bitcoin Futures by the CME


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Bitcoin Futures by the CME

  #81 (permalink)
 
wldman's Avatar
 wldman 
Chicago Illinois USA
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I'm going to stay above or below the fray on this issue crypto and all forms of trading it. The aficionados are zealots and the pros (including many friends) will be complicit in the ruin of weak. Neither the debate or the practice suit me.


artemiso View Post
Actually it's more probable in BTC because of the tight control over BTC supply and how illiquid it is. The last I checked, it took only $5M to move the price 4%. At today's prices, maybe about $8M for 2%. By the same virtue, 1 person alone crashed the price of ETH to $0.10 in a single $30M trade. Someone Sold $30 Million Worth of [AUTOLINK]Eth[/AUTOLINK], Sending Price to $0.10 Temporarily

There's 1000 BTC wallets that have >$28M and can single-handedly crash the entire BTC market.

How many institutions do you think can move ES by 2% in a fat finger trade?


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  #82 (permalink)
 
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ShatteredX View Post
CME Bitcoin contract is dead on arrival, IMO. $38,000 margin requirement is nuts.

In my opinion, what will determine the success of this is the cost of execution, technology, and safety. The margins are not irrelevant to institutions, but again I do not think it's what going to discourage them. As far as retail, yes, it is for much larger accounts.

Matt Z
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Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
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  #83 (permalink)
k7ler
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a wait when goldman sachs decided to bigshort the bitcoin make

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  #84 (permalink)
 S trader 
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On CQG feed BTC now have live data.
Spread is big, around 10-15 ticks.
1 tick=25$

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  #85 (permalink)
Kalisto
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Where do you guys trade the BTC future from the CME ?

AMP doesn’t offer it
Tradovate has yet to enable it for live (it can be charted and sim traded only)
NinjaTrader Brokerage rquires a $40k intraday margin

What else ?

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  #86 (permalink)
 
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 SMCJB 
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Advantage Futures allow it but I believe approval is on a case by case basis. Originally they were also charging margin in excess of the exchange requirements (not something they normally do) but not sure if this is still the case.

Note that the exchange margin requirements for Bitcoin is 37% of notional for non hedge activity and 110% of that for speculative. With last nights settlement of 11380 maintenance margin was $21,053 (11380*5*.37) and initial margin was $23,158 per contract. With Bitcoin up $1430 today margins will be increasing $2910 tonight if prices stay here.

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  #87 (permalink)
 
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NapoleonDynamite View Post
Where do you guys trade the BTC future from the CME ?

AMP doesn’t offer it
Tradovate has yet to enable it for live (it can be charted and sim traded only)
NinjaTrader Brokerage rquires a $40k intraday margin

What else ?

We offer BTC, on a case by case basis,. This is a tricky contract because the exchange is closed on the weekend, but the cash is still working 24/7. If you keep positions overnight, you should be able to cover a lot of the notional value.
If you day trade, they may have less restrictive rules.

Matt Z
Optimus Futures

There is a substantial risk of loss in futures trading. Past perfoermance is not indicative of future results.

Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
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  #88 (permalink)
Kalisto
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What’s the difference between non hedge and speculative then ? Don’t get it

mattz you offer it through CQG connectivity ? I’d daytrade only, can’t risk overweekend and would avoid the daily 1 hour maintainance closure too, since a 10% move could certainly happen during such time window

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  #89 (permalink)
 
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NapoleonDynamite View Post
What’s the difference between non hedge and speculative then ? Don’t get it

mattz you offer it through CQG connectivity ? I’d daytrade only, can’t risk overweekend and would avoid the daily 1 hour maintainance closure too, since a 10% move could certainly happen during such time window

Hedging in Futures is when you actually have the underlying asset. In the case of BTC, you would have the digital asset, and you would use the Futures contract for the price protection. Traders who have the physical commodity do in Ags, metals, energies, etc.

I can tell you that your account size would determine your margins on BTC for day trading as well as the number of contracts you wish to hold and your net-worth. Risk managers are apprehensive about this contract.
Thanks,
Matt Z
Optimus Futures

There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.

Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
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  #90 (permalink)
Kalisto
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I’d do fine with the 37% of exchange margin for intraday, without excess.
Else, I might as well go with LMAX, offering 2:1 leverage and especially opened during the weekend, 24/7 except 5 minutes per day, without further checks

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