Nov 20, · Today, traders and investors can use Interactive Brokers trading platform to buy Bitcoin futures contracts. At the moment, this services is available only on two of the exchanges CME (Chicago Mercantile Exchange, and CFE (Cboe futures Exchange). On both exchanges, the futures will be having their own symbol as well. Interactive Brokers LLC. Is a member NYSE - FINRA - SIPC and regulated by the US Securities and Exchange Commission and the Commodity Futures Trading Commission. Headquarters: One Pickwick Plaza, Greenwich, CT USA Website: bitcoinlife24.de Interactive Brokers Canada Inc. Is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and Member . Interactive Brokers is an exceptional brokerage for professional traders that trade stocks, options, futures, CFDs or any other spot or derivative instrument following mainstream markets. If this describes you, give IB a try. It is not great for bitcoin futures at the moment – if this is what you are after, we recommend looking elsewhere.
Interactive brokers trading bitcoinBitcoin | Interactive Brokers India Pvt. Ltd.
You can trade options, buy future contracts or do CFD trading from the same platform. It is an award winning online brokerage service that has been around for 40 years now. The overall trades taking place using its platform are said to be around , on any given day today. Cryptocurrencies are still new in the market. Oftentimes, there is an aura around them that keeps the traders, new ones and experts, a bit reluctant to trade them. However, after more than five years, cryptocurrencies have reached a point where you can say that there are here to stay.
It only makes sense for the big brokers on the internet to offer some way for traders and investors to invest in cryptocurrency market as well. Since Bitcoin is the cryptocurrency that has been around for the most years and is considered the most reliable digital coin as well, Interactive Brokers has started to offer futures trading on it.
Today, traders and investors can use Interactive Brokers trading platform to buy Bitcoin futures contracts. On both exchanges, the futures will be having their own symbol as well. This particular milestone has already been achieved by the company in the December of There are a few restrictions on these trades at the moment due to the volatile nature of the cryptocurrency market.
This basic information will be helpful for any new traders who wish to join the Interactive Brokers platform. Futures Trading. Futures trading is something that people can often confuse with options trading because there are definite similarities in them. The first thing you have to know about futures contracts is that when you agree to buy or sell them, you are under an obligation.
The basic concept of futures trading is that you decide a future trade on which you hold yourself obligated to sell or buy a particular asset.
At the time of deciding the deadline, you also agree to a specified price at which you will purchase or sell the asset. When the specified date arrives, you have to sell or buy the asset at the price you agreed.
So, here is a plain example to make the concept clearer to the readers. You go into a futures buying agreement i. Now that you have entered the agreement, you would hope for the price of the asset to rise in future.
If you have understood futures trading carefully, you would know that futures trading comes with quite a few risks for Interactive Brokers. First, Interactive Brokers should be given credit for bringing a new trading instrument for its investors and traders despite the associated risks.
However, the company is doing its best to keep things as balanced as possible. When this option was introduced by the company, you could not go short on your sales. What it means was that you could not sell the asset on the exchange to buy it later. The reason for this limitation was the volatility of cryptocurrencies.
However, buying the short position is now possible for traders and investors. One must keep in mind that on this particular exchange, each contract will only be 1BTC. In order for the traders to enter the bitcoin futures trades, they will first have to enable it in their accounts. There is a trading permission page on which the trader can enable or disable the option to sell or buy BTC futures.
Individuals who have accounts with Interactive Brokers and futures trading is already enabled on their accounts will not need to activate this option. The approval for futures trading can be given upon request and requires nearly a day to complete.
Another important thing is for the residents in Japan. If you are an Interactive Brokers trader from Japan, you will not be able to do bitcoin futures trading.
Furthermore, you are not allowed to conduct this type of trade using an IRA. You also have to pay attention to the margin requirements before you go ahead and start trading BTC futures. When it comes to outright margin, it will be different for the two exchanges because of the difference in their contract sizes.
Going short is still going to be challenging and only the accounts with a lot of tolerance can go short on their BTC futures trades. It might need further explanation to satisfy the traders on the issue of margins on short positions. Yes, the margin requirements might seem steep at first, but as soon as you realize the risk of the broker, you will find them justifiable. If you sell a contract to buy it back at a later date, you profit from the rising price of that asset.
If the price of the asset rises significantly, you buy it back at a much lower and agreed upon price at the time of entering the contract.
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Contract specifications are available on the CME website. Knowledge Base. Our transparent Fixed pricing for futures in US markets includes broker commission, plus exchange, regulatory and clearing fees. Futures Commissions. Log into Account Management and sign up for Crypto on the trading permission page under Futures. If you already have futures trading permissions, you can immediately trade.