CBOE Will Start Bitcoin Futures Trading on December 10

Re:CBOE Will Start Bitcoin Futures Trading on December 10 by JumpCrisscross on Monday December 04, 2017 @10:05AM (#15844323)

These are all cash-settled futures. Suppose I buy and you sell a future marking Bitcoin at $10,000. The next day, Bitcoin is $11,000. You give me 1,000 U.S. dollars. (The exact mechanics depend on various factors. I’m stylising.) The next day, Bitcoin falls to $9,000. I give you 2,000 U.S. dollars. Et cetera until the contract is over.

Many investors want exposure to Bitcoin. A significant subset therof are perfectly happy with the financial system as is. They want Bitcoin to look like any other financial asset. These futures are the beginning of Wall Street serving that demand.

Disclaimer: This is not investment advice. Not all futures work like this. Review investments with a lawyer and/or investment advisor.

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Re:CBOE Will Start Bitcoin Futures Trading on December 10 by karpodiem on Monday December 04, 2017 @10:39AM (#15844628)

I can see that being the case in a market where it's difficult to transport a few tons of gold (if that's your position size) but suppose I want to take delivery of the coins. Will CBOE facilitate this?

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Re:CBOE Will Start Bitcoin Futures Trading on December 10 by thess24 on Monday December 04, 2017 @11:12AM (#15844908)

No. Because they are cash settled, only cash will change hands.

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