How do CME Bitcoin futures work?

Like a futures contract for a commodity or stock index, Bitcoin futures allow investors to speculate on the future price of Bitcoin. The Chicago Mercantile Exchange (CME) offers monthly contracts for cash settlement.

How do I buy CME futures?

Set up a futures trading account with a futures commission merchant (FCM). Talk to your FCM about which account type and memberships may be appropriate for you. Your FCM can execute your trades and provide clearing services for you. Alternatively, you can access CME Group markets directly via CME Direct.

What does CME futures stand for?

The Chicago Mercantile Exchange (CME), colloquially known as the Chicago Merc, is an organized exchange for the trading of futures and options.

How does futures market affect Bitcoin?

All futures contracts derive their value from their respective underlying. In case of bitcoin futures, their prices depend on bitcoin spot prices, and any move in the latter affects the former. This dependency leads to the prices of the two moving in sync with each other, though there is a difference between the two.

What is Bitcoin CME futures gap?

The Bitcoin CME gap, also called the “CME gap” for short, is the difference between the trading price of a Bitcoin futures contracts when the market opens on Sunday, and when it closes on Friday. Unlike cryptocurrencies, traditional assets do not trade 24/7 around the clock.

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