The second major financial derivative based on bitcoin is launching to trade on the Chicago Mercantile Exchange.
The CHICAGO MERCANTILE EXCHANGE Group, one of the US's major exchanges of options and fiancial derivatives ,created bitcoin futures for trading at 6 p.m. EST Sunday. The initial price for bitcoin futures was $20,650, and the digital currency was trading at $20,135 at 6:08 p.m. EST.
The virtual currency has exploded in popularity and gain this year whilst drawing questions regarding its unpredictability.
The CME bitcoin options contracts, like the bitcoin futures that now trade on the Chicago Board Options Exchange, do not involve actual bitcoin. They will track an index of bitcoin price. Each contract will be for 5 bitcoin.


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CME Group has its own Bitcoin Real Time Index (BRTI) to use as a guide for what bitcoin are worth at any given time.
The Cboe futures exchange launched Bitcoin futures on 10th December 2017 and is considered to be the first step in the evolution of Bitcoin into a mature asset class, with the futures market providing investors with greater liquidity, transparency and an efficient price discovery system. The Commodity Futures Trading Commission and the National Futures Association regulate the futures markets. Here's how they work and what you need to know before they begin trading.

For indices or currencies, these margin requirements can be as low as 1 percent of the underlying value of the security.
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