It is no secret that the price of bitcoin has fluctuated greatly in recent weeks, but this volatility may end if the world’s largest futures exchange, CME, implements price fluctuation limits in its planned bitcoin futures product. CME aims to avoid trade outside the 20 percent range, limiting movements to 7 and 13 percent above or below the last closing price, as in the ranges granted to US stock futures.
Interest in bitcoin has increased recently as prices have risen steadily, but concerns have increased as several days of heavy losses have shaken the market. In September, for example, bitcoin fell from above $ 5,000 to below $ 3,000, registering a 40 percent decrease in just 2 weeks. In November, however, the cryptocurrency traded above 7600.
If this measure is implemented, the limits would limit the upside potential for the traders, but it would also reduce the worries of devastating losses if the price of the cryptocurrency oscillated to the downside. CME announced that it will launch bitcoin futures by the end of 2017, pending confirmation from the United States Commodity Futures Trading Commission (CFTC). The negotiation is scheduled for 6 p.m. EST at 5 p.m. EST Sunday through Friday at ClearPort, CME’s OTC market, and at Globex, CME’s e-commerce system.
Cryptocurrency trading is also available in more than 120 cryptofunds, many of which have been developed by Wall Street veterans looking to take advantage of the popularity of cryptocurrencies and some of which were developed by Forex brokers. . Although it was once considered a risky investment, cryptocurrencies appear to be on the way to becoming a major investment opportunity.