Firstly I am not saying myself or Walsh Trading is bullish or bearish Bitcoin BTC or any Altcoin this is just suggesting ways to get short or to hedge physical Bitcoin or Altcoin using Chicago Mercantile Exchange CME futures and options.
Retail and Institutional clients can use CME Bitcoin BTC and Ethereum ETH futures to trade or hedge and getting short BTC or ETH if you want to get short vs the underlying BTC or ETH cash contract or whichever Altcoin you own. There are custody solutions and CFDs available to get short, both are expensive and you are subject to what the respective liquidity provider offers while dealing with volatility.
CME Bitcoin and Ethereum offer a solid liquid solution for getting long or short and provide immediate pricing of order execution which the CFTC\NFA require.
Directly Bitcoin futures ($25 per tic $95000 maintenence margin currently and can change without warning) provide direct trading and hedging for Bitcoin underlying instrument and Micro Bitcoin ($5 per tic $2500 maintenence margin and can change without warning) give you the ability to micro manage creating an even better tool for hedging including Altcoins.
Ethereum Futures ($12.5 per tic $75000 maintenance margin and can change without warning) provide direct trading and hedging for Ethereum underlying instrument.
For Altcoins using Micro Bitcoin ($5 per tic $2500 maintenance margin currently and can change without warning ) provides a way to hedge and with the Micro Bitcoin futures contract its a good way for retail clients to just trade Bitcoin, in all cases its still very risky to trade the high volatility of ALL Cryptocurrencies.
Another tool is Bitcoin Options the underlying contract is full size Bitcoin futures ($25 per tic $83000 maintenance margin currently and can change without warning) has the same margin requirements, with defined risk.
Again in all cases its still very risky to trade the high volatility of ALL Cryptocurrencies.
SHORT CRYPTOCURRENCIES RISK PROFILE WILL MOST LIKELY REQUIRE MORE MARGIN THAN WHAT IS INITALLY REQUIRED AND MARGIN REQUIREMENTS ARE SUBJECT TO CHANGE(GO HIGHER) WITHOUT WARNING
Peter Ori
peterori@walshtrading.com
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member. Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices.PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.
DISCLAIMER: Cryptocurrencies are a high risk investment and may not be suitable for all members of the public and all types of investors. Before investing in or depositing cryptocurrency, you must ensure that the nature, complexity and risks inherent in cryptocurrency are suitable for your objectives in light of your circumstances and financial position. You should not purchase or hold cryptocurrency unless you understand the extent of your exposure to potential loss.
YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY OVER UNDERLYING OR SPOT VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS.
More information can be found at: NFA Investor Advisory—Futures on Virtual Currencies Including Bitcoin CFTC Customer Advisory: Understand the Risks of Virtual Currency Trading