CBOE Launches Bitcoin Futures Next Monday, Trading Free Until Year-End

The race between the Chicago Mercantile Exchange (CME) and the Chicago Board of Options Exchange (CBOE) during the years has been extremely competitive. When it comes to Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term futures, however, it seems that the latter will have the upper hand, at least regarding getting to market first.

The CBOE has just announced that it is preparing to go live next Sunday, 10th of December at 23:00 GMT (17:00 CT). The firm is providing an initial incentive to Bitcoin market aficionados with free trading until the end of December.

Last week the CME confirmed that it would start offering Bitcoin futures on the 17th of December, a week after the CBOE.

Exchanges have been instructed by the CFTC, the US regulator, to gather additional data from their crypto-centered peers that are delivering the price quotes. The measure is aiming to prevent Bitcoin price manipulation.

Earlier today, the Moscow Exchange also announced plans to deploy a Bitcoin futures contract to the market.

Futures Trading Could Disrupt the Market

The relationship between cash-settled futures trading and Bitcoin prices prompt a lot of unanswered questions. Prices of Bitcoin should technically be influenced only by physical (digital) purchases of the digital currency.

In contrast to futures markets for oil or gold, where a client can take delivery upon the expiration of the contract, traders of Bitcoin futures will be obliged to settle at the market price. In theory, entities that are purchasing significant amounts on the futures markets could be affecting real prices via buying BTC on crypto exchanges in smaller quantities.

The high initial margin requirements that the CME Group announced last week are indicating that the product will be cautiously introduced to the market. Some executives in the trading industry argue that the introduction of a futures contract should decrease Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term.

One way or the other, brokers will soon have access to a relatively reliable source of data on Bitcoin prices. Both the CME and the CBOE will use a set of crypto exchange partners to deliver a real-time and reliable price gauge to their clients.