Micro Bitcoin Futures (MBT) traded over 650,000 contracts with an average daily volume of over 28,000 contracts in the first month since its inception. MBT futures are one of the most successful product launches in the futures industry and continue to attract new traders.
“We are pleased with the strong acceptance and support we saw for this new contract so early in the first month,” said Tim McCourt, CME Group global head of Equity Index and Alternative Investment Products. “At one-fiftieth the size of our larger Bitcoin futures, this new, smaller contract enables traders of all sizes to better manage their Bitcoin price risk in an efficient and cost-effective way.”
MBT futures are listed with the CME Group and are settled in cash using the CME CF BRR reference rate. MBT futures allow traders to have long or short exposure to the price of Bitcoin and offer several distinct advantages over trading on the spot market.
Benefits of Micro Bitcoin Futures
Reduced financial commitment: Micro Bitcoin Futures (MBT) are 1/10 of a Bitcoin and 1/50 of the standard Bitcoin futures contract. The smaller contract size of MBT futures allows for greater flexibility and lower margin requirements compared to standard Bitcoin futures.
Trade long or short: Like all other futures contracts, MBT futures can be traded on both the long and the short side without restrictions. This is very convenient for traders compared to the spot bitcoin market, which can only be traded from the long side, meaning traders can only try to profit from an increase in bitcoin prices.
Transparent prices: MBT futures trade on the electronic trading system Globex from CME, a highly secure and redundant electronic trading system with a single central limit order book (CLOB). All dealers see the same price, offer and offer, which means more transparency.
Liquidity: CME’s liquidity pool is huge and global, centered on a single order book. In addition to active participants from all over the world, there are many liquidity providers who add depth and size to the order book.
Trading hours: Trade almost 24/7 with trading hours Sunday through Friday from 5:00 p.m. to 4:00 p.m. CT.
Regulated marketplace: MBT futures are listed with the CME Group and settled with the CME Clearinghouse, which offers considerable security and stability compared to unregulated markets without a clearinghouse. The CME clearinghouse settles accounts with all clearing brokers every day, which adds another level of stability.
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