CME becomes the second exchange to announce Bitcoin futures. As you know, these days there are many exchanges in the world that work in the field of Bitcoin futures transactions. Meanwhile, CME exchange has become the second best exchange in this field. You can learn more about the most important reasons for this CME achievement in the continuation of this article from Pooyan Music website.
CME is one of the largest and most reliable international exchanges that deals in futures contracts and financial options. CME is recognized as a central exchange in the United States of America and conducts transactions in more than 150 countries. Considering the importance and credibility of CME in financial markets, activity in this exchange can help investors and traders to operate safely and securely in these markets.
In fact, futures transactions are contracts that are concluded to buy and sell an asset in the future, at a specified price and conditions. These types of contracts are used to reduce the risk of future prices and guarantee prices in the future. Futures trading is commonly used in financial industries and commodities related to agriculture, energy and precious metals.
In futures transactions, the parties to the contract undertake to buy or sell a specified amount of assets at a specified price on a specified date in the future. For example, an investor can enter into a futures contract to buy 100 crude oil at a date one month in the future.
In this case, a specific price and quantity for the purchase of oil in the future will be determined and the transaction will be made on a specific date. Futures transactions are used as a tool for risk control and price management in financial markets. By using these contracts, it is possible to maintain the fixed price for the asset in the future and reduce the impact of price fluctuations in the market.
In addition, futures transactions allow investors to trade in the markets where the desired asset is traded, without needing to be physically present in it. Futures transactions are often done in reputable exchanges such as CME, NYMEX and ICE and require financial capabilities and knowledge of the financial market.
The Chicago Mercantile Exchange (CME) is an exchange that lists Bitcoin futures. The exchange is currently second only to Binance in terms of real profits to rank second on the list of Bitcoin futures exchanges. CME’s profit on October 30 reached $3.58 billion.
CME outperformed Bybit and OKX with open profits of $2.6 billion and $1.78 billion, respectively. This exchange is only a few million away from Binance’s $3.9 billion profit. The standard Bitcoin futures contract by CME is worth five bitcoins, while the micro contract is worth one tenth of a bitcoin.
Perpetual futures contracts, rather than regular futures contracts, are the main focus of interest in cross-border exchanges. Because they are offered without an expiration date and use the financing rate method to maintain their price parity with the market price. Bitcoin open interest refers to the total number of Bitcoin futures or options contracts in the market.
It specifies the amount of money invested in Bitcoin derivatives at any given time. Open interest measures the amount of capital entering and exiting the market. If more capital flows into Bitcoin futures, open interest will increase. However, if the capital is withdrawn, the open interest is reduced.