Jan 30, · First, the contracts are traded on an exchange regulated by the Commodity Futures Trading Commission, which might give large institutional investors . May 09, · Since December 10, , bitcoin futures have been available to trade on the Chicago Board Options Exchange (CBOE). A few days later, on . Hedge bitcoin exposure or harness its performance using options based on the regulated CME CF Bitcoin Reference Rate (BRR) and actively settled into traded Bitcoin futures. Learn more BITCOIN UPDATES: STAY UP-TO-DATE ON CME GROUP BITCOIN PRODUCT DEVELOPMENTS.
Where are bitcoin futures tradedTop 5 Best Bitcoin Futures Exchanges in - CoinDiligent
The website is relatively easy to navigate, and the spot, futures and perpetual swaps platforms are all accessible to beginners and experts alike. Customer support is also readily available, since OKEx offers both phone support and email-ticket support, in addition to a well-polished help center. Overall, the platform is considered an extremely safe place to trade Bitcoin, as the exchange has never been hacked—using a combination of cold storage wallets and distributed server clusters to stay that way.
Widely recognized as the most liquid spot exchange, Binance also offers a hugely popular futures trading platform, which offers 11 different perpetual futures, covering most popular cryptocurrencies in addition to some unique ones, including Chainlink LINK and Stellar XLM. Binance was founded in by Changpeng Zhao and Yi He, two innovators experienced with trading systems. Binance offers a wide range of products and services, including a staking and lending platform , spot exchange, and a rapidly expanding futures platform.
A clean and intuitive trading interface is crucial and Binance definitely got the memo. The exchange has a beginner-friendly UI and a simple to use mobile app. The website is also available in numerous different languages and offers simple, but responsive support through live chat and an internal ticket system. Although Binance has been hacked in the past, the exchange covered all the losses using its Secure Asset Fund for Users, demonstrating impressive integrity and commitment to its users.
Nonetheless, the platform still keeps the majority of user funds in cold storage and offers a wide variety of account security options. Binance uses a VIP system to calculate fees. Binance Futures fees start at 0. Besides being an excellent tool for speculating on Bitcoin prices and hedging again price risk, Bitcoin futures have several benefits that make them worth considering as part of any solid trading strategy.
Unlike most spot Bitcoin exchanges, Bitcoin futures trading platforms tend to offer extremely low fees, which makes them attractive to both high volume and low volume traders. Market makers can often also receive a rebate for adding liquidity to the market, which can range between 0. These low fees and market maker rebates help ensure Bitcoin futures markets remain extremely liquid, helping to keep spreads low and preventing slippage during settlement.
This essentially means traders can open positions far larger than their balance by temporarily borrowing capital from the futures trading platform or other traders. Since most bitcoin futures trading platforms offer up to x leverage , this means traders can multiply their profits by up to x compared to trading without leverage. As a matter of fact, the most liquid Bitcoin futures achieve massively higher trade volume than Bitcoin trade volume on the most popular spot exchanges, such as Binance and Bittrex.
Because of this, traders can expect little to no slippage when trading, regardless of the prevailing market conditions, since most prominent bitcoin futures trading platforms have very low spreads even during times of high volatility. This means you can focus more on your trading strategies, rather than worrying about dealing with slippage. Although Bitcoin futures have a huge number of benefits, it is still quite possible to lose money while trading them, particularly if traders neglect to maintain adequate caution.
Beyond this, Bitcoin futures also have their fair share of risks which can make them unsuitable for some traders—two of the main ones are outlined below:. Although trading Bitcoin futures on margin with leverage can multiply your exposure to beneficial price movements, it also works in the opposite direction and can multiply losses just as quickly.
As such, even small adverse movements can cause significant losses when trading with high leverage. Because all Bitcoin futures platforms enforce margin requirements to prevent bankruptcy and ensure that trade winners get their expected profits, traders are at risk of automatic liquidation if their account balance falls below the required margin requirement.
Beyond this, traders also need to be aware of potential stop hunting—a strategy employed by large market participants to drive the price of an asset to a level that triggers the stop loss of small traders. This is more of a risk on smaller, less liquid platforms and is mostly a concern for those trading with a tight stop loss , high leverage or both. As it stands, the large majority of cryptocurrency futures exchanges are unregulated.
This means they are not licensed to offer futures products. Since licensed platforms need to meet stringent guidelines on how user funds are handled and stored, as well as ensure they have a viable plan to remain solvent long-term, it stands to reason that unlicensed platforms might not adhere to these same quality standards.
As such, there may be a higher risk trading on unregulated platforms, since traders have few protections in place should anything go wrong. Pascal Thellmann is an algorithmic trader mostly focused on market making. You can get in touch with Pascal on LinkedIn or Twitter. CoinDiligent is the go-to resource for cryptocurrency traders. We write in-depth trading guides, valuable exchange reviews, and share priceless trading tips from top crypto traders.
Visit Platform. Start Trading on Bybit. CONS U. Start Trading on Deribit. Start Trading on Binance. Pascal Thellmann. Comments Hey Pascal, Very impressive overview you have made here.
We are a new platform that just launched. We are curious to hear your thoughts on the platform Reply. Outright Active Contracts. CME Group is the world's leading and most diverse derivatives marketplace. Markets Home. Active trader. Hear from active traders about their experience adding CME Group futures and options on futures to their portfolio.
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