CME Will Double Bitcoin Futures Open Position Limit
Main page News, Bitcoin

Chicago Mercantile Exchange (CME) has reported it plans to expand the limits to open positions in its bitcoin futures market. CME has asked the US Commodity Futures Trading Commission (CFTC) to allow it to expand its limits.

The limit will increase from 1,000 to 2,000 contracts per month. Since each contract corresponds to five bitcoins, this means the position limit will increase to $100 million at the current exchange rate.

At the same time, the current average daily trading volume is 7,100 contracts. However, the company believes there is still room for growth "thanks to the significant adoption of the futures market and the analysis of the underlying bitcoin market."

If the CFTC eventually approves the changes, they will take effect as of September 30 and will be applied to contracts in October.

It must be noted that the limits on the number of open positions are set in an attempt to avoid market manipulation. If the CFTC gives green light to the changes, this will mean that it recognizes that the risk of market manipulation has decreased.

Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.

Read also:
Please describe the error