What is a bitcoin futures contract?

BTC futures provide investors with transparency, price discovery and risk management capabilities. The contract will also allow individual market participants to access the bitcoin market as well as hedge any direct exposure to bitcoin pricing. For more information about Bitcoin Futures, please visit cmegroup.com/bitcoinfutures.

What is the difference between futures and options?

Futures are also compared to options, as both contract types enable you to buy and sell an underlying asset for a specific price on a future date. However, unlike futures, options contracts, give the buyer the right to leave the contract to expire worthless – they are not obliged to fulfil the contract at expiry.

Who uses futures contracts?

Futures contracts are used by two categories of market participants: hedgers and speculators. Producers or purchasers of an underlying asset hedge or guarantee the price at which the commodity is sold or purchased. They use futures contracts to ensure that they have a buyer and a satisfactory price, hedging against any changes in the market.

How do BTC futures work?

A single BTC contract has a value of five times the value of the BRR Index and is quoted in U.S. dollars per one bitcoin. The tick increments are quoted in multiples of $5 per bitcoin, meaning a one-tick move of the BTC future is equal to $25. BTC futures are block trade eligible with a minimum quantity threshold of five contracts.