World

Bitcoin Futures: What Are They and How Do They Work?

Bitcoin Futures: What Are They and How Do They Work?

In recent days, many bitcoin exchanges have seen systems failures.

The notice states that Dealer Members must mark-to-market and margin exchange-traded cryptocurrency futures contract positions daily at the greatest of (i) 50% of the market value of the contracts; (ii) the margin required by the futures exchange, such as the CBOE, on which the contracts are entered into; (iii) the margin required by the futures exchange's clearing corporation; and (iv) the margin required by the Dealer Member's clearing broker.

Bitcoin was set up in 2008 by an individual or group calling themselves Satoshi Nakamoto, and was the first digital currency to successfully use cryptography to keep transactions secure and hidden, making traditional financial regulation hard if not impossible. Optimists hope that bitcoin futures will become well-established and even make underlying markets more robust by dampening volatility.

Chicago-based Cboe's bitcoin futures surged almost 20 percent in their debut on Monday, and more than 4,000 contracts changed hands by the end of the 4:15 p.m. EDT settlement. Fragmentation in the underlying exchange spot market however, makes it hard to provide an accurate price. Listing these contracts will allow both institutional and retail investors to obtain long or short.

"As a firm, while we recognise that bitcoin is very volatile and that no one knows what is going to happen to its value, we feel that the utility of digital assets and blockchain is here to stay", he said. Despite being at an all-time high and in bubble territory, prices have been propped up by the addition of bitcoin futures by the Cboe. "Miners" contribute computer power to package up and verify the transactions, thus putting them on the blockchain.

Is the Bitcoin bubble about to burst?




Japan, the center of the cryptocurrency industry in Asia, is also planning to attract bitcoin futures trading in the near future.

"Regulation is important to any product - when you look at cryptocurrencies or anything else you trade - so we continue to evolve", Duffy said on CNBC's "Fast Money".

Its an exciting time to be an investor, with potential access to new and exciting investment opportunities related to bitcoin.

"There are tales of fortunes made and dreamed to be made", he said. That's why CME Group is launching bitcoin futures Sunday - with some extra regulatory safeguards.

OFTEN promoted as a way of mitigating risk, futures contracts are frequently more like new ways of gambling.

Bitcoin futures fell into the regulator's purview after it declared the underlying a commodity in a 2015 order against Coinflip, a bitcoin options and futures platform.


  • Raycom Media Camellia Bowl Betting Preview: Middle Tennessee State vs. Arkansas State

    Raycom Media Camellia Bowl Betting Preview: Middle Tennessee State vs. Arkansas State

    The Blue Raiders swiftly answered with a 75-yard touchdown drive in just six plays to push the lead back to twelve. The Arkansas State Red Wolves were 7-4 in the Sun Belt 2017, and Middle Tennessee was 6-6 in Conference USA.
    Riders rescued after being trapped in Pa. ski lift malfunction

    Riders rescued after being trapped in Pa. ski lift malfunction

    Despite the lift incident, Tussey Mountain officials said on their Facebook page that some of the mountain would remain open. Ski patrol then evacuated about 20 people who were stuck on the lift, a process that involved using rope and harness.
    Jazz Center Rudy Gobert Expected to Miss One Month

    Jazz Center Rudy Gobert Expected to Miss One Month

    It's worth mentioning that Utah's Derrick Favors and the rest of the squad filled in well last time Gobert missed time. Gobert's had good luck in that neither knee injury was too serious, but bad luck because this keeps happening.
  • Net neutrality repeal: Now what?

    Net neutrality repeal: Now what?

    Others have warned that customer choice of internet service providers could shrink and prices of broadband service could increase. The regulations rolled back this week basically stopped internet providers from giving preference to certain content.
    Matt Kemp traded back to Dodgers in major 5-player deal

    Matt Kemp traded back to Dodgers in major 5-player deal

    The Braves are in the midst of a massive rebuild, but they are also looking to take that first step towards a better future. Following the Trade, Gonzalez was designated for assignment, Mark Bowman of MLB.com reports.
    Chicago Bears vs. Detroit Lions football on Local 4

    Chicago Bears vs. Detroit Lions football on Local 4

    Here's everything you need to know to watch the game , or follow along as we bring you the latest score, live updates and more. If Detroit does not beat the Chicago Bears , for starters, its chances of making it to the playoffs are likely over.
  • Gunmen kill five in attack on church in Pakistan's Quetta

    Gunmen kill five in attack on church in Pakistan's Quetta

    One of the attacker blew himself up at the Church gate, while the other was shot dead by security officials. Security had been beefed up for the church after the last attack, but had grown lax over time.
    Interpol dismisses NIA's RCN request against Zakir Naik

    Interpol dismisses NIA's RCN request against Zakir Naik

    NIA sources said the agency will submit a fresh request to Interpol, possibly on Monday itself, for issuing an RCN against Naik. The decision was sent to the Interpol General secretariat which deleted the data from the Interpol's files in November 2017.
    Just Passing Through: Three Mile Wide Asteroid Makes Earth Visit

    Just Passing Through: Three Mile Wide Asteroid Makes Earth Visit

    Earlier this month, the Immanuel Kant Baltic Federal University in Konigsberg, Russia, published a tracking the path of Phaethon. Legend claims the young demi-god was challenged to prove he was related to Helios, who was said to pull the sun across the sky.
  • Leslie Jones Takes on Omarosa's White House Firing on 'SNL'

    Leslie Jones Takes on Omarosa's White House Firing on 'SNL'

    In a surprise guest appearance, Scarlett Johansson shows up next as Ivanka Trump, to extended applause by the audience. Trump then laments Moore's election defeat, saying, "I thought for sure that he would win".
    Mooy double as Huddersfield wins 4-1 at Watford

    Mooy double as Huddersfield wins 4-1 at Watford

    However, Kachunga was taken off on a stretcher in the 19th minute with what appeared to be a knee injury. We've had the feeling that this has just been around the corner even if the results have not been there.
    Unlikely dance star Gemma Atkinson is one step away from Strictly title

    Unlikely dance star Gemma Atkinson is one step away from Strictly title

    I don't care what I'm going through, I will find a reason to smile at anything - that's just the way I've been since I was a little girl.