Bitcoin Futures Trading
Bitcoin futures offer traders leveraged, size-flexible exposure to the world’s largest cryptocurrency. tastytrade's trading platform gives investors access to both standard and micro-CME bitcoin futures.
How Bitcoin Futures Work
Bitcoin futures, like all futures, are derivative products. This means their value is derived from another, underlying source. In the case of bitcoin futures, the underlying product is bitcoin itself.
Some futures products, called “deliverable futures”, are settled via an actual exchange of the underlying product. Silver and Oil futures are settled in this manner. Bitcoin futures are “cash settled”. Rather than receiving or providing a set amount of Bitcoin, a trader’s account will either be credited or debited a cash amount based on the difference between the initial position and the settlement price.
Want to learn more about futures? Check out our deep dive on futures here.
Why Trade Bitcoin Futures?
Trading bitcoin futures offers investors benefits that are not available when trading bitcoin cryptocurrency outright:
- You’ll never have to worry about losing your private key.
- Use limit and stop-loss orders to mitigate potential losses.
- Bitcoin futures are regulated by the CFTC.
- When you trade bitcoin futures with tastytrade, the fees are upfront and low.1
- Trading bitcoin futures allows investors the ability to take a long or short position.
- Bitcoin futures are offered by the CME Futures Exchange.
Bitcoin Futures Fees
At tastytrade, commissions are always low.1 Learn more about our commissions and fees.
| Contract to open | Contract to close | |
|---|---|---|
Futures | $1.25 | $1.25 |
Micro Futures | $0.85 | $0.85 |
| Contract to open | |
|---|---|
Futures | $1.25 |
Micro Futures | $0.85 |
| Contract to close | |
|---|---|
Futures | $1.25 |
Micro Futures | $0.85 |
In the futures market, a “tick” represents the minimum price fluctuation. The tick value of a bitcoin futures contract will depend upon which futures contract you are trading.
As shown by the tick increments below, CME’s standard size bitcoin futures contract is 50x larger than its micro bitcoin future.
Tick increment | 1 Tick move | |
|---|---|---|
CME’s Standard Bitcoin Futures Contract | $5 | $5 |
CME’s Micro Bitcoin Futures | $5 | $0.50 |
Tick increment | |
|---|---|
CME’s Standard Bitcoin Futures Contract | $5 |
CME’s Micro Bitcoin Futures | $5 |
1 Tick move | |
|---|---|
CME’s Standard Bitcoin Futures Contract | $5 |
CME’s Micro Bitcoin Futures | $0.50 |
How to Trade Bitcoin Futures
tastytrade currently offers two bitcoin futures products:
- CME Bitcoin Futures: Represent five bitcoins
- CME Bitcoin Micro Futures: Represent 1/10th the size of one bitcoin
To get started trading bitcoin futures with tastytrade, follow the steps below:2
- Do your research to get an understanding of how bitcoin futures trading works3
- Create an account or log in
- Choose your preferred bitcoin futures product
- Create a trading plan and manage your risk
- Open your futures position and monitor it
- Close your position if you want to do so before contract expires
If you still have questions, reach out to our friendly trade desk support team.
1 All futures trades incur a clearing fee of $0.30 per contract + exchange fees + NFA Fee. Download the complete list of fees.
2 Futures account approval is subject to tastytrade suitability requirements. Futures and futures options trading is speculative and not suitable for all investors. Please read all applicable futures risk disclosures.
3 Please read the NFA’s Investor Advisory Notice - Futures on Virtual Currencies.
TASTYTRADE, INC. IS A MEMBER OF NFA AND IS SUBJECT TO NFA'S REGULATORY OVERSIGHT AND EXAMINATIONS. HOWEVER, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY OVER UNDERLYING OR SPOT VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS.
All investments involve risk of loss. Please carefully consider the risks associated with your investments and if such trading is suitable for you before deciding to trade certain products or strategies. You are solely responsible for making your investment and trading decisions and for evaluating the risks associated with your investments.