- The exchange is set to increase the monthly limit for Bitcoin contracts.
- The market has stabilized and become less speculative.
The Chicago Mercantile Exchange (CME Group) will increase the monthly limit on Bitcoin Futures open positions to 10,000 BTC or 2000 contracts.
"Increased spot-month position limits in CME Bitcoin futures will be available Sept 30, pending reg review. Limits will increase to 2K contracts, equal to 10K bitcoin, to provide customers,”CME wrote on Twitter.
The change will take place on September 30 subject to CFTC approval.
Currently, open positions are limited by 1,000 contracts or 5,000 BTC; however, it has never been reached. CME is confident that the growing interest in flexible risk hedging instruments for bitcoin is yet to come.
Limits on open positions are set by the CFTC to prevent market manipulation. If the agency approves the changes, it will recognize that the likelihood of excessive speculation in the bitcoin market has decreased.
In 2019, an average of 7,100 Bitcoin contracts was concluded daily on the CME, and the average daily trading volume was $237 million (as of the end of August). A record number of large open interest holders is 56. According to the press release, the exchange has seen “20 successful, uneventful settlements.”
Read also: Derivatives for Bitcoin Cash may become a possibility in the nearest future
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.