Bitcoin Futures trading|CBOE | and how it works
According to Plan, CBOE Bullish on First Day of Bitcoin Futures Trading
Bitcoin investors,these days are very happy with their decision of investing in Bitcoins.all of this is because of the price of the bitcoin.
The Chicago Board Options Exchange (CBOE)launched Bitcoin Futures for trading over the weekend.Chicago Merchantile Exchange is aiming its plan to launch its own Bitcoin Futures on december 18 and it can exceed the market for their underlying asset.
The first day of Future trading is over on the CBOE exchange and the day went according to the plan of the ceo of the exchange.
Here is what you need to know about the Bitcoin Futures
So what the Futures are
Futures are an agreement to buy and sell a certain product at a certain date. As it pertains to bitcoin, it’s one way for investors wary of unregulated bitcoin exchanges to speculate on the price of bitcoin at a future time in a setting that is being overseen by a regulator, the Commodities Futures and Trade Commission, in an already established exchange.
The first day of bitcoin futures trading on the CBOE exchange is over and the day largely went according to plan, according to its CEO.
Overall, Monday saw the price of bitcoin push above $17,000 on CoinDesk's Bitcoin Price Index (BPI) to hit a new all-time high in the hours after the Chicago-based firm began trading the derivatives. That process began late Sunday, an event that coincided with a near-simultaneous crashing of CBOE's website.
The price of bitcoin jumped over $1,000 in minutes.
Reports indicate, however, that trading has gone relatively smoothly since then. As Bloomberg shows, CBOE's circuit breakers – essentially market backstops that pause trading during periods of heightened volatility – were triggered twice during the first six hours of trading yesterday.
No circuit breakers were activated during Monday trading, according to CBOE.
Futures can also be used to control the risks in portfolio
Take oil for example, which is just beginning to recover after falling below $30 a barrel in 2016, but now trades just shy of $60. Given that oil makes up a major chunk of expenses for airlines, it takes no Einstein to realize today’s price would be considerably less desirable than 2016’s. So it has become common for companies such as Delta and Southwest Airlines to lock in low prices for delivery in future months.
Futures will affect the price of Bitcoin so this is something that all the crypto trader need to know about.
Speaking with Fox Business' Neil Cavuto at the conclusion of the Dec. 11 trading session, Ed Tilly said yesterday's kick-off went "according to plan."
He said in the interview:
"I think it’s pretty positive. Think about never having traded this contract in a lit futures market before. There was that kind of confidence in CBOE's systems to bring this contract up."
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