After the trading start in the Bitcoin Future (ticker symbol XTB), things are as turbulent as one could expect. Just in a different way, as many doubters had expected. After all, in futures you can just as well rely on falling prices as on rising ones. Many observers had expected a violent short attack. This attack still may come, but for now this didn´t happen. Sunday Evening at 5 PM Chicago time trading in Bitcoin Futures started on the Chicago Option Exchange “CBOE”. Just in time for the start, the website of the Exchange collapsed, probably because all the world wanted to follow the first quotations there. Of course, CBOE trading systems have nothing to do with the website!
Due to heavy traffic on our website, visitors to https://t.co/jb3O722hoo may find that it is performing slower than usual and may at times be temporarily unavailable. All trading systems are operating normally.
— Cboe (@CBOE) December 10, 2017
And like all other major US exchanges, the CBOE has rules to stop too strong sudden price swings. These “Circuit Breakers” are activated when a future rises or falls more than 10% (2 minutes trading break), and even when the movement reaches 20% (5 minutes break). That’s exactly what happened twice tonight. But not because the market collapsed, but because it rose.
The first price in the Bitcoin Future was $ 15,000, and now stands at $ 18,580. The actual price of the basis (Bitcoin price) is given as 16,250 dollars. Coinbase platform is currently showing a bitcoin price of $ 16,878. This shows how big the price differences can be at a completely decentralized traded price! Thus, there is currently a price difference of $ 2,330 between the Bitcoin Future (maturing on January 17) and the Bitcoin. The terms of 14th February and 14th March are quoted at $ 19.090 and $ 18,840.
The CBOE apparently believes it can do good business with the contract. It´s obvious that it wants to bring the traders to be active here. Why else has the CBOE announced in its short official press release that in the month of December for all transactions in the Bitcoin Future, it will waive all Exchange fees. Also mentioned, which dimensions of Bitcoin have now adopted. The market capitalization of Bitcoin has increased in the last five years from less than $ 1 billion to $ 262 billion, with a daily volume of more than $ 21 billion on December 8, for example. The value of all crypto tokens is $ 423.7 billion, according to CBOE.
50 Dollar Spreads in a Future Contract are no problem when prices are increasing so quickly?