Well, their average fee on most other majorly-traded products is just above $1 per contract, so $5 per contract per side seems to be inline with the 5x multiple. Looks to be a small price to pay for potentially huge volatility, which is what folks want yeah?
Bitcoin Futures Set to Start Trading as Regulator Gives Thumbs Up CFTC says it will allow launches b
- Thread starter ajacobson
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Well, their average fee on most other majorly-traded products is just above $1 per contract, so $5 per contract per side seems to be inline with the 5x multiple. Looks to be a small price to pay for potentially huge volatility, which is what folks want yeah?
Yes, but with BTC you only have to go long.
I don't get why they did the 5 coins multiplier. After all their commission is per contract, so if they make it 1 coin per contract, their commission would be 5 times more for the same capital traded. Maybe they wanted to lock out the small fish...
it seems like they want to lock out the small fish.
one contract lot = 5 bitcoins
and margin requirement is hugh about $17500.
But the biggest margin requirement goes to DAX (EUR 24000 !).
strangely mini dax volume is much smaller than dax.
for CBOE, one contract lot = 1 bitcoin.
so perhaps CBOE targets smaller fish.
Ah OK, I didn't realize they will also charge multiple fee for it.
By the way, I think having official bitcoin futures is the equivalent of shoeshine boys giving stock advice or the CEO appearing on the Time magazine's cover. This will be the end of it, instead of the beginning. It is really 1999.
Let's not forget that the 2 most populous countries banned bitcoin's intended use, namely being a currency. So for all purposes, it is really just something that people hold into. But if the futures really take off, there is no reason why other cryptos shouldn't be traded on the same, regulated exchange. Maybe now having a real arb opportunity will actually smooth out big price fluctuations and volatility will die down.
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I'm surprised it's that low.
ha. I am not used to trading with low leverage (in this case 2.8).
I prefer leverage like > 50
Cantor Fitzgerald is market maker for bitcoins.
Would the FED bail out CME, CBOE, and Cantor Fitgerald?
Would the FED bail out CME, CBOE, and Cantor Fitgerald?
I don't understand, why would any of them need to be bailed out?
I guess liquidity will suck in the BTC futures, at least at the beginning for sure. As far as i was able to find out, CME has not announced a lead market maker program for this contract. I suppose it would be difficult to find any, since with all the KYC and AML requirements its difficult for institutions to touch the spot-market at all (hence difficult to hedge). There is no real interdealer mkt for coins like in FX. They would have to open accounts at amateur exchanges like Kraken and such to hedge. This contract might even be DOA like so many other 'innovative' CME products.
