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Writer's pictureGorilla Futures

Micro Bitcoin Futures

This week NinjaTrader rolled out its Micro Bitcoin Futures(MBT) offering with extremely low commissions and low account margins to trade such a volatile asset. Yet another great offering to give retail traders more options to trade crypto and futures. What many traders might not see is the fact the that big players are working to get more retail involvement in futures.


In the past 12-24 months we have seen multiple options roll out of brokers and the CME for retail traders. First we had the Micros which are a tenth of the size or the Minis and secondly we had the Small Exchange open which gives retail traders even more accessibly to the futures market without as much "skin" in the game.


With MBT futures rolling out at the beginning of this week we will see how retail and larger investors take to the new futures contract.


MBT futures will be a tenth of the size of one Bitcoin, trading hours will be Sunday – Friday 6:00 p.m. – 5:00 p.m. ET (5:00 p.m. – 4:00 p.m. CT) with a 60-minute break each day beginning at 5:00 p.m. ET (4:00 p.m. CT).


With MBT futures will be cashed settled meaning you will not receive Bitcoin during the settlement period. This mean at expiration if you do not roll your position you will simply be "cashed" out at the BRR or Bitcoin Reference Rate on the last day of trading. Traders will not be required to hold a digital wallet due to the fact all MBT futures will be cashed settled and will be using the account you have setup with your broker.


Traders will be required to open a futures account with a registered futures broker who will maintain your account and guarantee your trades.


Micro Bitcoin Futures will be listed and cleared on the CME, a US-registered designated contract market (DCM) and derivatives clearing organization (DCO).


Each day MBT futures will be settled using a VWAP or volume weighted average price of the CME Globex trades between 3:59:00 p.m. and 4:00:00 p.m. Eastern Time.


NinjaTrader will be offering MBT futures with an intra-day margin of $500.00, this means each trader will need to maintain a minimum of $500.00 in his/her account when trading.


Traders will now be able to speculate on Bitcoin with risking much less then trading Bitcoin futures and have the protection of a centralized exchange unlike many other options out there.


The real question is will you be trading MBT futures? The Team at Gorilla Futures will be trading MBT in the near future!


Need more Information? CME Group

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