<img src="https://bitcoinmagazine.com/.image/c_fit%2Ch_800%2Cw_1200/MTc5Mjk3ODU2NDA4NzI1MTg3/cme-group-adds-options-on-bitcoin-futures-for-2020.jpg” />
CME Group, the main market of world derivatives, has <a target="_blank" href="https://www.prnewswire.com/news-releases/cme-group-to-launch-options-on-bitcoin-friday-futures-302363475.html”>announced
The established financial options, also known as cash options, are derived contracts where the agreement to the expiration does not imply the physical delivery of the underlying asset. On the other hand, the gain or loss of the option is calculated based on the difference between the exercise price of the option and the market price of the underlying asset at the time of expiration, and this amount is paid in cash.
“We are pleased to offer these new options that provide operators even greater precision to administer the short -term bitcoin price risk,” Giovanni Vicioso, a global head of CME Group cryptocurrency products, said. “On the basis of the success of our bitcoin Friday futures, the smallest size of these contracts, together with daily expansions, offers market participants a set of capital tools to effectively adjust their exposure to bitcoin.”
CME Group said that these established financial options will improve their line of other cryptocurrency derivatives, which already include physically established options in bitcoin and Micro bitcoin futures.
“Given the growing density of negotiable catalysts in cryptography, the new cme group options suite in bitcoin Friday Futures provides the granularity that market participants need to cover and express nuanced opinions about bitcoin,” said Joshua Lim, co-head of Falconx markets.
Since its launch on September 29, bitcoin Friday Futures has become the most successful cryptocurrency product of the CME group, with more than 775,000 negotiated contracts and an average daily volume of 9,700 contracts. In particular, 44% of the operations occurred during non -American hours, highlighting the global demand.