On Sunday, the Cboe will finally launch its long-awaited bitcoin futures contract; the CME Group will launch its futures contract later This specific month.
This specific will surely add a completely new element to bitcoin, shifting the item by a buy-side-only trade to introducing the ability to go long — or short. This specific should bring completely new, larger in addition to also institutional participants into the market.
To be sure, any time a completely new contract launches, you want to get a not bad gauge of expected movement. Take a look at the average true range of the last 30 days, the last week in addition to also day by one exchange’s measure.
Last 30 days – High of $18,464, low of $5,868
The last week – High of $18,464, low of $10,797
The last day – High of $18,464, low of $14,610
As one can see based on the wide ranges, This specific will be a volatile contract. Using a stop-loss order will be going to prove paramount.
The question remains: Will This specific just be a short-lived contract, like single stock futures, real estate futures or binary futures?
No one knows.
Two pieces of advice I can offer when diving into trading This specific product: Markets tend to fall twice as fast as they rise. This specific occurs when investors catch a long-trending bull move, in addition to also then when they see their profits start to slip a “panic” occurs in addition to also everyone runs for the exit.
The second one to remember: Plan your trades in addition to also trade your plan.