Cboe Bitcoin Futures: 5 Things You Should Know About XBT
Most retail traders stick to stocks, a smaller portion make their way into options, but very few trade futures. That could change when Cboe Global Markets (NASDAQ: CBOE) rolls out a bitcoin futures contract on Dec. 10, opening up a complex market to retail investors who see an opportunity to make large sums of money trading a volatile cryptocurrency with leverage on top.
Bitcoin is already red hot among retail risk takers. On any given day, the Bitcoin Investment Trust (NASDAQOTH: GBTC), which acts as a "bitcoin ETF" of sorts, ranks as one of the most popularly traded stocks at Fidelity, partly because its big daily price fluctuations are a boon to traders who stand to win or lose big in fast-moving markets.
Futures are likely to be popular among white-knuckle traders, thanks to their added leverage and the fact that speculators armed with small accounts can trade futures less expensively than they can trade stocks. TD Ameritrade, which has publicly declared it will allow its clients to trade bitcoin futures, prices futures trades at $2.50 per contract, whereas stock commissions are $6.95.
Source: Fool.com
