Micro Bitcoin Futures is a product suitable for small-scale investors due to its smaller contract size, which offers lower risk exposure. Users who purchased MBT have the financial obligation to buy or sell the underlying asset at an agreed-upon price on a predetermined date.
How much does it cost to invest in bitcoin futures?
For a BTC price of $50,000, the total cost of the Bitcoin Futures contract would be $250,000, and the investor would need to deposit $125,000 (50%) as the margin.
Where do bitcoin futures contracts trade?
Bitcoin futures contracts trade on the Chicago Mercantile Exchange (CME), which introduces new monthly contracts for cash settlement. The CME offers monthly BTC futures contracts for six months and additional quarterly contracts for each of the four upcoming quarters. CME Group also offers an additional December contract if only one is listed.
How much does a bitcoin MBT cost?
Bitcoin’s dramatic price increase since 2017 also prompted CME Group to establish smaller-scale MBT contracts. While each Bitcoin Futures contract unit costs 5 BTC, each MBT contract unit costs only 0.10 BTC.
