Exchange operator CME to launch ‘micro’ versions of bitcoin, ether options -Breaking
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© Reuters. FILE PHOTO – Men entering the CME Group office in New York City, U.S.A, 18 October 2017. REUTERS/Brendan McDermid(Reuters) – Futures exchange operator CME group Inc (NASDAQ) plans to launch micro Bitcoin and ether options this month in an effort to increase its appeal to retail traders. The company announced Tuesday.
They will have a size one-tenth that of the biggest cryptocurrency pairs and be open to institutional as well as individual traders. The contracts will be available to traders on March 28th, subject to regulatory approval.
Option contracts are used to protect traders from large swings of the share price and speculate about the future direction of the stock price.
Although cryptocurrencies are making a comeback, the prices for cryptocurrencies continue to swing wildly as central banks announce the end to pandemic-era economic stimuli and chart interest rate increases to control unruly inflation.
CME launched last year “micro” version of its bitcoin futures and ether futures. Futures can be contracts which bind the holder to sell or buy the asset on a particular date.
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