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Micro Bitcoin Futures: Top Benefits for Traders

Micro Bitcoin

There is no denying the impact Bitcoin has made on the trading landscape in recent years. You may be interested in getting involved in cryptocurrency trading, but leery of holding virtual currency in a digital wallet or one of the many exchanges. On the other hand, you may already be investing in various cryptocurrencies, but are looking for an efficient hedge against your long-term holdings. Micro Bitcoin futures (MBT) help fill the gaps in each of these scenarios bringing Bitcoin futures trading to the masses!

Learn more about Micro Bitcoin futures in this 2 Minute video!

Shorting Bitcoin

Unlike trading stocks or ETF’s, if a trader wants to short Micro Bitcoin futures, they will not incur borrowing fees. Shorting Micro Bitcoin futures is as simple as selling the contract at your desired contract month and posting the required margin.

Going Long Without a Spot Account

What if you are bullish on Bitcoin markets but you do not want to open up a spot account at a crypto exchange? Micro Bitcoin futures from CME Group are 1/10 the size of one Bitcoin, offering a capital-efficient product that allows a trader to gain exposure to Bitcoin at just 38% of the notional value. For example, a futures trader can gain exposure to $3,500 of Bitcoin with only $1,330.

Additional Benefits

While the versatility of trading Bitcoin futures alone offers unique benefits for futures traders and cryptocurrency investors alike, the benefits of including Micro Bitcoin in your trading arsenal don’t stop there. Here are a few more reasons to consider MBT as part of your trading portfolio:

  1. Regulated & Time-Tested Exchange: CME Group is the world’s leading and most diverse derivatives marketplace, servicing the futures trading marketplace for more than 20 years.
  2. Centralized Pool of Liquidity and Price: Micro Bitcoin Futures differ from spot markets in that they operate on a centralized exchange, rather than fragmented pools of price and liquidity. This means all Bitcoin futures traders experience the same prices, settle with the CME CF Bitcoin Reference Rate (BRR), and have the same opportunity to enter the market on a first-in first-out basis.
  3. Trade Bitcoin Futures Alongside Index and Commodity Futures: When you open an account at NinjaTrader, you can access Micro Bitcoin Futures, along with leading index futures, such as the E-Mini S&P 500, and commodities markets, like oil and gold. Diversify your trading portfolio through a single account!
  4. As you can see Micro Bitcoin Futures (MBT) have many benefits for traders looking for exposure to Bitcoin, to short Bitcoin or to precisely hedge their spot Bitcoin positions.

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    This article is intended for educational and informational purposes only and should not be viewed as a solicitation or recommendation of any product, service or trading strategy. It includes content from independent persons or companies that are in no manner affiliated with NinjaTrader Group (NTG) or any of its affiliates. The content and opinions expressed in this article do not necessarily reflect the official policy or position of NinjaTrader or any of its affiliates.