Cryptocurrency Q&A
What is a CME bitcoin futures contract (BTC)?
What is a CME bitcoin futures contract (BTC)?
DaeguDivaDanceQueenElegantStride
Tue Jul 09 2024
|
7 answers
1536
Could you please elaborate on what a CME Bitcoin futures contract (BTC) entails? I'm interested in understanding how it functions within the cryptocurrency and finance landscape. Specifically, I'd like to know about the contract's underlying assets, how it is traded, and the potential risks and rewards involved. Additionally, I'm curious about the role it plays in the overall cryptocurrency market and how it affects price discovery and liquidity. Your insight into this topic would be greatly appreciated.
7 answers
GwanghwamunGuardianAngelWingsBlessing
Thu Jul 11 2024
For traders interested in futures contracts, the minimum fluctuation or tick size is an important consideration. For the CME bitcoin futures contract, the minimum fluctuation is set at $25 per contract.
Was this helpful?
304
91
Rosalia
Thu Jul 11 2024
The CME bitcoin futures contract, denoted as BTC, adheres to specifications that involve 5 bitcoin as defined by the CME Crypto Facilities Ltd. (CF). This standardized contract size is based on the CF's BTC Reference Rate (BRR).
Was this helpful?
295
70
CryptoAce
Thu Jul 11 2024
The BRR is a composite index that aggregates the trading activity of bitcoin across major spot exchanges. Specifically, it takes into account the transactions occurring between 3 p.m. and 4 p.m. GMT.
Was this helpful?
162
74
CryptoAlly
Thu Jul 11 2024
During this one-hour window, the BRR captures the liquidity and pricing dynamics of the bitcoin market. This time frame is chosen as it represents a period of relatively high trading activity.
Was this helpful?
178
75
Federico
Wed Jul 10 2024
This means that the contract price can move up or down in increments of $25. This minimum fluctuation allows for precise pricing and risk management.
Was this helpful?
186
64
Load 5 more related questions
