May 15, 2021

Bitcoin micro futures will attract more retail traders

Bitcoin micro futures will attract more retail traders

CME Group announced the launch of trading in micro-futures contracts for bitcoin. This tool can attract there are more retail traders to BTC.

Big benefit from small contracts

Chicago Mercantile Exchange CME Group, one ofthe world's leading derivatives trading platforms, at the end of March announced an upcoming event. On May 3, a new trading instrument based on BTC was launched on the exchange - micro-futures contracts for bitcoin.

BTC micro-futures will expand the range of crypto derivatives the exchange offers to its clients. The size of one such contract will be approximately one tenth of bitcoin.

As expected in CME Group, such contractssmall size will help to hedge risks more efficiently and cost-effectively for a wide variety of market participants - from institutional investors to experienced active traders. All of them will be able to fine-tune the level of risk when investing in bitcoin and improve their trading strategies, said Tim McCourt, a spokesman for the management of CME Group, commenting on the new product.

For every taste and color ...

The new tool is expected to enhancethe availability of bitcoin derivatives for a wider range of traders. Thus, it can attract new retail buyers with more modest capabilities than institutional ones.

"Smaller contracts will allow traders of all levels, from institutional to retail traders, to interact with Bitcoin or hedge their BTC spot positions."- comments Daniel Reiba, CEO of the online trading platform E * TRADE Financial.

CME plunges into the crypto space

Thus, CME Group continues to expandtheir presence on the crypto market. The company first announced its plans to launch bitcoin derivatives back in October 2019. So she decided to respond to the increased interest of her clients in crypto derivatives.

CME is currently one of thelargest platforms for trading bitcoin futures. By December 2020, its daily trading volumes for BTC futures contracts averaged $ 880 million. At the beginning of 2021, the exchange reported that the daily trading volume for such contracts was about 69,000 BTC.

In addition, Ethereum futures trading started on the platform in February.

Where can users from Russia and the CIS trade bitcoin futures?

Bitcoin micro futures will attract more retail traders


The best platform for trading bitcoin futuresis Binance Futures from the largest cryptocurrency exchange Binance. In addition to it, there are also specialized CME and CBOE platforms in the United States, but they are strictly regulated by American laws, which actually closes access to them for investors and traders from Europe and the CIS.

Binance Futures features much less stringent KYC procedures and AML policy requirements - you can choose not to provide personal data and remain anonymousIn addition, the Binance Futures platform is much lower than the entry threshold, which means that they are available not only to large investors, but also to ordinary users.

Binance Futures also allows you to trade with minimal commissions and leverage x125.

The official website of the platform

Bitcoin micro futures will attract more retail traders


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