{"id":1777,"date":"2017-12-04T13:29:29","date_gmt":"2017-12-04T13:29:29","guid":{"rendered":"https:\/\/www.legitgambling.com\/news\/?p=1777"},"modified":"2017-12-14T18:13:20","modified_gmt":"2017-12-14T18:13:20","slug":"cme-launch-bitcoin-derivatives-trading-december","status":"publish","type":"post","link":"https:\/\/www.legitgambling.com\/news\/cme-launch-bitcoin-derivatives-trading-december\/","title":{"rendered":"CME to launch Bitcoin derivatives trading in December"},"content":{"rendered":"

\"\"In a major development, which might lead to worldwide official recognition of Bitcoin<\/a>, the US Commodity Futures Trading Commission (CFTC)<\/strong> confirmed late Friday that it has approved listing of Bitcoin derivatives in the futures exchanges run by the US based CME Group<\/strong> and CBOE<\/strong>. The CFTC also stated that Cantor Exchange was granted permission to offer Bitcoin binary options.<\/p>\n

Futures contracts allow traders to speculate on the rise or fall in the price of an asset without having ownership. CME has announced that it will facilitate trading in Bitcoin futures<\/a> from Monday, December 18, 2017. Each derivative contract will represent five Bitcoins. A margin money or \u201cgood faith<\/em>\u201d deposit of 5% to 10% would be required to open a long or short position. <\/p>\n

For example, if Bitcoin trades at $10,000 and if a trader expects further appreciation in the price, a sum of $2,500 to $5,000 (5% to 10% of 10,000×5 = $50,000) is required to buy one contract, and vice-versa. CME also stated that the Bitcoin futures contract will have a tick (minimum price movement) of $5. To avoid liquidation of positions, a trader has to maintain the margin deposit by adding funds, in a case the price moves against the open position.<\/p>\n

Bloomberg TV Markets and Finance<\/strong><\/p>\n

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