Micro Bitcoin futures (MBT) have traded over 650,000 contracts in the first month since being launched with an average daily volume exceeding 28,000 contracts. 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 uptake and support we have seen for this new contract so early on in its 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 allows traders of all sizes to better manage their bitcoin price risk in an efficient, cost-effective way.”
MBT futures are listed at CME Group and are cash-settled to 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 compared to trading the spot market.
Benefits of Micro Bitcoin Futures
Reduced Financial Commitment: Micro Bitcoin futures (MBT) are 1/10th of one Bitcoin and 1/50th of the standard Bitcoin futures contract. The smaller contract size of MBT futures allow for greater flexibility and reduced margin requirements compared to standard Bitcoin futures.
Trade Long or Short: MBT futures, like all other futures contracts can be traded from both the long and 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 attempt to profit from a rise in Bitcoin prices.
Transparent Pricing: MBT futures trade on the CME’s Globex electronic trading system, a highly secure and redundant electronic trading system with a single central limit order book (CLOB). All traders see the same price, bid and offer which means greater transparency.
Liquidity: CME’s liquidity pool is vast and global and is concentrated in a single order book. In addition to active participants from around the world, there are many liquidity providers that add depth and size to the order book.
Trading Hours: Trade nearly around the clock with trading hours from Sunday to Friday from 5:00pm to 4:00pm CT.
Regulated Marketplace: MBT futures are listed at the CME Group and clear at the CME Clearinghouse which offers significant safeguards and stability compared to unregulated markets with no clearinghouse. The CME Clearinghouse settles every day with all clearing brokers which adds a further layer of stability.
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