Bitcoin – Market Specifications

CBOE Bitcoin Futures (XBT)

Description: CBOE Bitcoin futures are (USD) cash-settled futures contracts that are based on the Gemini auction price for bitcoin in U.S. dollars. Since they are cash settled, you’ll never be forced to own or deliver actual Bitcoins.

Contract Multiplier: 1 Bitcoin.

Trading Ticker Symbol: XBT
(Final Settlement Value Symbol: XBTS)

Contract Expirations: The Final Settlement Date for XBT futures is two business days prior to the third Friday of the month denoted by the ticker symbol. The CBOE may list for XBT trading up to four near-term expiration weeks (“weekly” contracts), three near-term serial months (“serial” contracts), and three months on the March quarterly cycle (Mar,Jun,Sep,Dec) (H,M,U,Z).

Regular Session Trading Hours: (CT – Central Time) (Monday – Friday 8:30 a.m. to 3:15 p.m.)
The trading hours for an expiring XBT futures contract ends at 2:45 p.m. on its final settlement date.

Extended Session Trading Hours: (CT) (Sunday 5:00 p.m. to 8:30 a.m. Monday) (Monday – Friday 3:30 p.m. to 8:30 a.m.)

Order Types: Limit & Stop Limit Only
Market Orders for XBT futures contracts will not be accepted and will be automatically rejected.

Point Value: 1 ($1 per contract)

Minimum Price Intervals: 10 point values ($10 per contract).

Delivery: Settlement of XBT futures contracts will result in the delivery of a cash settlement amount on the business day immediately following the final settlement date. The cash settlement amount on the final settlement date shall be the final mark to market amount against the final settlement value of the XBT futures contract.

Position Limits: A person may not own or control more than 5,000 contracts net long or net short in all XBT futures contract expirations combined and may not own or control more than 1,000 contracts net long or net short in the expiring XBT futures contract, commencing at the start of trading hours 5 business days prior to the final settlement date of the expiring XBT futures contract.

Margin: Current margin rates are published on the TradeStation website here:
www.tradestation.com/pricing/futures-margin-requirements/
There is currently no reduced day-trading margin.

Price Limits: A market rise or decline means a rise or decline in price of the future between 8:30 a.m. and 3:00 p.m. central time on a trading day, as compared to the closing price of the future for the immediately preceding trading day. There are three levels that will trigger a suspension or halt to trading at a price rise or decline of 7%, 13%, and 20%.

Sample Trading Symbol: XBTH18

Index Tracking Symbols:
$XBTS.X – Gemini 4pm Bitcoin Auction Price
$GXBT.X – Daily Gemini Bitcoin Trade Price

For More Information: Visit the Cboe website

CME Bitcoin Futures (BTC)

Description: CME Bitcoin futures are (USD) cash settled futures based on the CME CF bitcoin reference rate (BRR), which aggregates bitcoin trading activity across major bitcoin spot exchanges between 3:00 p.m. and 4:00 p.m. London time. Since they are cash settled, you’ll never be forced to own or deliver actual Bitcoins.

Contract Multiplier: 5 Bitcoin.

Trading Ticker Symbol: BTC.

Contract Expirations: Last day of trading is the last Friday of contract month. The Exchange may list the nearest 2 months in the March quarterly cycle (Mar,Jun,Sep,Dec)(H,M,U,Z) plus the nearest 2 “serial” months not in the March quarterly cycle

Regular Session Trading Hours: (Central Time) (Monday – Friday 5:00 p.m. to 4:00 p.m. )
Trading in expiring futures terminates at 4:00 p.m. London time on the last day of trading for that contract.
The extending trading session is not support at this time.

Order Types: Limit & Stop Limit Only
Market Orders for BTC futures contracts will not be accepted and will be automatically rejected. The maximum order size will initially be 100 contracts.

Point Value: 5 ($5 per contract)

Minimum Price Intervals: 5 point values ($25 per contract).

Delivery: Cash settled by reference to final settlement price, equal to the CME CF bitcoin reference rate (BRR) on last day of trading.

Position Limits: Spot position limits are set at 1,000 contracts. A position accountability level of 5,000 contracts will be applied to positions in single months outside the spot month and in all months combined.

Margin: Current margin rates are published on the TradeStation website here:
www.tradestation.com/pricing/futures-margin-requirements/
There is currently no reduced day-trading margin.

Price Limits: Daily price limits are calculated in relation to the most recent Bitcoin Futures settlement price, calculated at 4:00 p.m. London time each business day. The reference price may be adjusted at the sole discretion of the exchange to incorporate BRR changes on non-trading days. A price limit of 20% above or below the reference price and special price fluctuation limits equal to 7% above or below the reference price and 13% above or below the reference price apply. Trading will not be permitted outside of the 20% range above or below the reference price.

Sample Trading Symbol: BTCH18

Index Tracking Symbols:
$BRTI – CME CF Bitcoin Real-Time Idx
$BRR – CME CF Bitcoin Reference Rate

For More Information: Visit the CME website

DISCLOSURES: Futures’ trading is not suitable for all investors and involves the risk of loss. The risk of loss in futures can be substantial. You should, therefore, carefully consider whether such trading is suitable for your financial condition. No statement within this webpage should be construed as a recommendation to buy or sell a futures contract or as investment advice.

BITCOIN DIGITAL ASSET DISCLOSURE: The Cboe Futures Exchange LLC (CFE) and the CME Group, Inc. (CME) have launched, or will soon launch, trading in Bitcoin futures. The CFE futures contracts are cash-settled contracts based on the Gemini’s auction price for Bitcoin, denominated in U.S. dollars. The CME’s futures contracts are, or will be, cash-settled contracts based on the CME CF Bitcoin Reference Rate (BRR) and the CME CF Bitcoin Real Time Index (BRTI). The specifications for each Bitcoin futures contract, including margin requirements and price fluctuation limits, can be found on the CFE and CME websites. TradeStation reserves the right to impose more restrictive limits which may, at TradeStation’s discretion, be revised from time to time. TradeStation also has the contractual right to liquidate all or any part of your position(s) through any means available, without prior notice to you. The regular risks associated with trading commodity futures contracts also apply to the trading of Bitcoin futures. These risks can be viewed at the following link: www.tradestation.com/important-information/.
Customers choosing to trade Bitcoin futures should consider additional significant risks including, but not limited to: (a) Bitcoin futures contracts have not previously traded on a U.S. regulated futures exchange and as such, there is no futures trading history in this product; (b)The price of the underlying Bitcoin and the indexes upon which the futures contracts are based are highly volatile and unpredictable based on many factors; (c) Since a limited number of futures commissions merchants may offer trading in the Bitcoin futures contracts, there might be limited volume which might impact market efficiencies and price movements; and (d) The risk of loss can be substantial and could result in a customer losing more than the initial or maintenance margin requirement. As such, each customer should conduct his or her own due diligence prior to make a decision to trade in these products. See link below from the National Futures Association for more information. www.nfa.futures.org/investors/investor-advisory.html

FORKING: A hard fork in a blockchain is a permanent divergence from the previous version of a blockchain, and nodes running previous versions will no longer be accepted by the newest version. This essentially creates a fork in the blockchain, one path which follows the new, upgraded blockchain, and one path which continues along the old path. Generally, after a short period of time, those on the old chain will realize that their version of the blockchain is outdated or irrelevant and quickly upgrade to the latest version. In the simplest terms and as it relates to Bitcoin futures, a hard fork is similar to a spinoff into a new instrument. CME is developing a hard fork policy for capturing cash market exposures in response to viable forks. The policy may involve cash adjustments to position holders or listing additional related futures that are also issued to position holders. CFE is developing a hard fork policy for capturing cash market exposures in response to viable forks. The CFE policy is not finalized.

Additionally, the Commodity Futures Trading Commission (“CFTC”) has made available a Virtual Currency Resource Web Page designed to educate and inform the public about this topic and its risks. See the link below for further information from the CFTC. http://www.cftc.gov/bitcoin/index.html