Ten days after launching Bitcoin derivatives, CME group has introduced a simulator for practicing trading in Bitcoin futures. CME group, which comprises of four exchanges – CME, CBOT, NYMEX and COMEX, has announced the virtual trading facility through a tweet issued on December 27. The simulator will enable new traders to get accustomed to Bitcoin trading, without putting their hard earned money at risk. Even seasoned traders will be able to make use of the simulation facility to try new trading strategies before taking it live.
CME started offering Bitcoin futures from December 18, 2017 onwards, a week after CBOE listed Bitcoin futures for trading. The introduction of the virtual trading facility is also seen as an attempt to increase the volume in the futures market. Leading market makers such as DRW, DV Trading, and Akuna Capital have expressed their interest to provide liquidity in the Bitcoin futures markets.
As of date, approximately 1,080 contracts are traded on the CME. At CBOE, the number of Bitcoin contracts traded is almost four times that of CME. Still, it is no where near the volume traded in unregulated crypto currency exchanges across the globe.
CME Group’s Bitcoin futures are cash-settled, based on the CME CF Bitcoin Reference Rate (BRR) which serves as a once-a-day reference rate of the U.S. dollar price of bitcoin.