Bitcoin futures trading could burst its own bubble

published 19.12.2017 09:59

The launch of Bitcoin futures at CBOE is set to be followed by its cross-town rival, the Chicago Mercantile Exchange (CME) Group, which plans to launch its own version of Bitcoin futures trading on December 18.

One party to the contract agrees to buy a given quantity of securities (such as stocks or bonds) or commodities (oil, gold, Bitcoin), and take the delivery on a future date while the other party agrees to deliver the asset.

Such was the excitement at the launch of futures that the Bitcoin price touched an all-time high of US$17,382.64 after one day of CBOE trading.

Bitcoin futures allows traders to speculate on what the Bitcoin price will be at a later date.

The volume of trading since bitcoin’s launch on CBOE has been relatively low, especially compared with more established currencies futures.

by Nafis Alam from salon.com

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