Cryptocurrency Q&A
What is the minimum tick value for micro bitcoin futures?
What is the minimum tick value for micro bitcoin futures?
SsangyongSpirited
Mon Aug 05 2024
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5 answers
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Excuse me, could you please clarify for me what the minimum tick value stands for in the context of micro bitcoin futures? Is it the smallest increment that the price of the futures contract can move up or down, and if so, what specific amount does it represent? I'm interested in understanding the micro structure of these contracts and how they differ from other types of Bitcoin futures in terms of their tick value.
5 answers
Arianna
Wed Aug 07 2024
Consequently, the minimum tick value for Bitcoin futures can be calculated by multiplying the tick increment by the smallest tradable fraction of a Bitcoin, which is typically 1/10th of a Bitcoin. Thus, the minimum tick value is $5 multiplied by 1/10th Bitcoin, resulting in $0.50.
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Claudio
Wed Aug 07 2024
Let's consider an example scenario with Micro Bitcoin futures, which are a fractionally traded version of Bitcoin futures. If the last trade price of Micro Bitcoin futures is 55,850, the next tradeable price below this level would be 55,845, as it is the nearest lower price that adheres to the $5 tick increment rule.
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Andrea
Wed Aug 07 2024
Similarly, the next tradeable price above 55,850 would be 55,855, which is the nearest higher price that respects the tick increment. This pricing structure ensures that trades are executed in a standardized and orderly manner, reducing the potential for confusion or mispricing.
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Davide
Wed Aug 07 2024
Tick Size in cryptocurrency trading refers to the minimum increment in price movement that can occur during a trade. For Bitcoin futures, the minimum tick increment is set at $5 per Bitcoin. This means that the price can only change in increments of $5 or multiples of it.
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EchoSolitude
Wed Aug 07 2024
BTCC, a UK-based cryptocurrency exchange, offers a range of services that cater to the needs of traders and investors in the cryptocurrency market. Among its offerings are spot trading, futures trading, and wallet services. These services provide users with the tools and infrastructure they need to participate in the dynamic and rapidly evolving cryptocurrency market.
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