{"id":14859,"date":"2022-04-21T17:12:30","date_gmt":"2022-04-21T11:42:30","guid":{"rendered":"https:\/\/zebpay.com\/?p=14859"},"modified":"2022-04-21T17:12:30","modified_gmt":"2022-04-21T11:42:30","slug":"all-about-micro-bitcoin-futures","status":"publish","type":"post","link":"https:\/\/zebpay.com\/au\/blog\/all-about-micro-bitcoin-futures","title":{"rendered":"All About Micro Bitcoin Futures"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/au\/blog\/all-about-micro-bitcoin-futures\/#Micro_BitCoin_Futures_Statistics\" title=\"Micro BitCoin Futures Statistics\">Micro BitCoin Futures Statistics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/au\/blog\/all-about-micro-bitcoin-futures\/#When_Did_Micro_Bitcoin_Futures_Get_Launched\" title=\"When Did Micro Bitcoin Futures Get Launched?\">When Did Micro Bitcoin Futures Get Launched?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/au\/blog\/all-about-micro-bitcoin-futures\/#Key_Points_of_Interest\" title=\"Key Points of Interest\">Key Points of Interest<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/au\/blog\/all-about-micro-bitcoin-futures\/#How_Does_Movements_In_MBT_Work\" title=\"How Does Movements In MBT Work?\">How Does Movements In MBT Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zebpay.com\/au\/blog\/all-about-micro-bitcoin-futures\/#MBT_Futures_Security\" title=\"MBT Futures Security\">MBT Futures Security<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zebpay.com\/au\/blog\/all-about-micro-bitcoin-futures\/#Making_Money_With_Micro_Bitcoin_Futures\" title=\"Making Money With Micro Bitcoin Futures\">Making Money With Micro Bitcoin Futures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/zebpay.com\/au\/blog\/all-about-micro-bitcoin-futures\/#Use_of_Hedge_Strategy\" title=\"Use of Hedge Strategy\">Use of Hedge Strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/zebpay.com\/au\/blog\/all-about-micro-bitcoin-futures\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>The crypto buzz today is all about Micro Bitcoin Futures. So, what\u2019s Micro Bitcoin Futures? Here we go: Micro Bitcoin Futures (MBT) is a contract the size of 1\/50th of the market value of 1 BitCoin (BTC) settled at 1\/10th profit margin by cash with the CME Group. This provides a great opportunity for small business owners and small-scale traders to <a href=\"https:\/\/zebpay.com\/in\/buy-bitcoin\/\">buy BTC<\/a> without owning actual BTC. These MBT contracts are fully regulated and help provide the traders with proper insights into the risks involved in the price volatility of BitCoin.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-micro-bitcoin-futures-statistics\"><span class=\"ez-toc-section\" id=\"Micro_BitCoin_Futures_Statistics\"><\/span><strong>Micro BitCoin Futures Statistics<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Contract Unit<\/strong><\/td><td>0.10 BTC<\/td><\/tr><tr><td><strong>Symbol<\/strong><\/td><td>CME Globex: MBT<\/td><\/tr><tr><td><strong>Settlement Method<\/strong><\/td><td>Cash<\/td><\/tr><tr><td><strong>Contract Duration<\/strong><\/td><td>12 months<\/td><\/tr><tr><td><strong>Minimum Fluctuation<\/strong><\/td><td>Outrights $5\/BTC = $0.50\/MBT; Spreads $1\/BTC = $0.10\/MBT<\/td><\/tr><tr><td><strong>Price Limit\/Circuit<\/strong><\/td><td>Price Limits<\/td><\/tr><tr><td><strong>Trading Hours<\/strong><\/td><td>CME Globex: Sunday to Friday (5 &#8211; 4) pm CT<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_Did_Micro_Bitcoin_Futures_Get_Launched\"><\/span><strong>When Did Micro Bitcoin Futures Get Launched?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>On March 28, 2022, both Micro Bitcoin Futures and Micro Ether Futures were opened for trading options to the world by CME Globex.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Points_of_Interest\"><\/span><strong>Key Points of Interest<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Due to the limited supply of BTC, the Bitcoin futures contract was introduced in the year 2017, which allowed traders to own BTC without actually mining a real one. But one Bitcoin futures contract represents 5 BTC which is quite expensive as per the current market value. Thanks to Micro Bitcoin Futures, smaller contracts at a fraction of 1\/50th of the fluctuation rate are now available, regulated by the CME CF Bitcoin Reference Rate (BRR).<\/li><li>Trading on a regulated exchange allows traders to observe the price discovery of explicit futures keeping all the participants quoted at the same prices. This gives traders precise exposure to BTC and enables them to make fair comparisons.<\/li><li>Potential margin offsets can be efficiently managed through such futures contracts providing efficient use of capital in crypto trading.<\/li><li>Micro Bitcoin Futures trading markets are open nearly 23 hours each day for 6 days a week, providing convenient access to the market price swings.<\/li><li>Liquidity is one of the key elements in computing market opportunities and is a core expression of trading sentiments. The more the liquidity of a market, the better the chances for a buyer to find a seller and vice versa. MBT futures market offers deep liquidity markets, which makes trading that much more efficient.<\/li><\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_Movements_In_MBT_Work\"><\/span><strong>How Does Movements In MBT Work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Based on the CME CF BRR, the Micro Bitcoin Futures have a minimum price fluctuation tick size of $5. This means that for every $5 increase or decrease in the actual market price of BTC, the MBT contract price moves 1 tick up or down.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"MBT_Futures_Security\"><\/span><strong>MBT Futures Security<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>CME Clearing regulates, scrutinises, and keeps backup of each trade in the futures market to ensure its integrity. Following certain safety tips to follow before, after, and during trading, might further reduce risks. There are a certain set of Exchange rules for every participating trader to follow as mandatory.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Making_Money_With_Micro_Bitcoin_Futures\"><\/span><strong>Making Money With Micro Bitcoin Futures<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Investors are able to do trading in MBT futures at a marginal cost of 10% of the value of a bigger contract to own as well as control the rights to sell them till the contract expires. The best advantage of margins is that they not only multiply profits but also make it possible for traders to risk money they can\u2019t afford to lose. This method is known as using leverage and it can magnify the effect of price changes. So, the risks involved are greater and one needs to undertake a proper analysis of the market prediction statistics before investing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Use_of_Hedge_Strategy\"><\/span><strong>Use of Hedge Strategy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In simple terms, a hedge is a method of investment where a particular price margin is locked before trading, reducing the risks involved. For example, when you try to book a train ticket for a certain date, even before getting a confirmed status on the reservation, the purchase is locked at a specific price (say Rs 500). When the reservation is confirmed, even if the market price of the ticket rises to Rs 550, you would still pay only Rs 500, i.e., the amount previously agreed to. Similarly, it doesn\u2019t matter if the price of BTC rises or falls in the meantime. You can sell the MBT futures at only the price you agreed to pay before investing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Micro Bitcoin Futures contracts are invented to reduce investment risks for all classes of traders.\u00a0 Want to trade or invest in Micro Bitcoin Futures? Wait no more. Start trading at <a href=\"https:\/\/zebpay.com\/in\/\">Zebpay<\/a> today!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The crypto buzz today is all about Micro Bitcoin Futures. So, what\u2019s Micro Bitcoin Futures? Here we go: Micro Bitcoin Futures (MBT) is a contract the size of 1\/50th of the market value of 1 BitCoin (BTC) settled at 1\/10th profit margin by cash with the CME Group. This provides a great opportunity for small [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14860,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[14],"tags":[],"class_list":["post-14859","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto"],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/14859","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/comments?post=14859"}],"version-history":[{"count":0,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/14859\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media\/14860"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media?parent=14859"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/categories?post=14859"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/tags?post=14859"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}